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147
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
38 Accounting of Acquisition
(Continued)
(a) Before the acquisition by the Group, these companies had no business activities except for the holding of land use
rights or in the process to obtain land use rights. Accordingly, the activities of these companies do not constitute
a business and the Group’s intention of such acquisition is to acquire the land use rights or the potential land use
rights of these companies for future property developments. Accordingly, such acquisitions were accounted for
as if they were acquisitions of the underlying land use rights and the net cash outflows associated with the above
acquisitions of companies are presented within the operating activities in the consolidated statement of cash flows.
The allocation of acquisition considerations for the acquisition completed in 2011 are as follows:
At date of acquisition
RMB’000
Glorious
Yangguang Dalian
Jiangsu Cultural
Property Group
Combined
Property, plant and equipment (note 6)
1,601
3,901
5,502
Properties under development and prepayments
792,112
1,478,736
2,270,848
Cash and cash equivalents
89
26,413
26,502
Trade and other payables
(3,467)
(691)
(4,158)
Borrowings
— (286,159)
(286,159)
Non-controlling interests
(237,100)
(562,200)
(799,300)
Total acquisition consideration
553,235
660,000
1,213,235
Less: Acquisition consideration payable as at
31 December 2011
(187,746)
(310,000)
(497,746)
Consideration paid by cash
365,489
350,000
715,489
Less : cash and cash equivalents acquired
(89)
(26,413)
(26,502)
Cash outflow on acquisition
365,400
323,587
688,987
(b) As set out in note 20(a), the Group acquired the entire issued share capital of Better Score (effectively also the
entire issued share capital of Greater Base Limited and Nantong Jiju Foundation Facilities Construction Co., Ltd.)
from S.I. Properties and the shareholder’s loans owed by Better Score to S.I. Properties at a total consideration
of RMB2,000,000,000. This arrangement in substance is a repayment of the loan granted by S.I. Properties and
therefore it is not considered as a business combination.