207 F INANC IAL Statements Sect ion 05 Annual Report 2022 NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 20. INVESTMENT IN SUBSIDIARIES (Contd.) (e) (Contd.) Goodwill on consolidation arising on acquisition: 2022 RBSB RM’000 RWSB RM’000 Total RM’000 Total purchase considerations 69,171 86,915 156,086 Less: Net identifiable asset acquired (36,607) (31,379) (67,986) Goodwill on consideration (Note 16) 32,564 55,536 88,100 2021 RBSB RM’000 RWSB RM’000 Total RM’000 Total purchase considerations 69,171 86,915 156,086 Less: Net identifiable asset acquired (35,233) (31,379) (66,612) Provisional goodwill on consideration (Note 16) 33,938 55,536 89,474 The fair value of identifiable assets, liabilities and goodwill as at 31 December 2021 was provisional as the Group was undertaking a purchase price allocation exercise to determine the identifiable assets and liabilities, and to identify and measure intangible assets. During the year, the Group has finalised the purchase price allocation exercise which resulted in an adjustment in fair value of net identifiable asset acquired amounting to RM1,374,000 (net of deferred tax of RM434,000) due to recognition of value of customer contracts in RBSB and resultantly, goodwill has been reduced by RM1,374,000. Customer contracts have been recognised as other intangible assets (Note 16). The differences arise on completion of purchase price allocation has been adjusted in current year instead of retrospectively as the impact is not material to the Group. Acquisition related costs had been charged out as administrative expenses amounted to RM2,695,000 in previous financial year. From the date of acquisition, the subsidiaries’ contributed revenue and profit after tax amounted to RM98,411,000 and RM24,055,000 respectively in previous financial year. If the acquisition of RBSB and RWSB had been completed on the first day of the previous financial year, the Group’s revenue and profit after tax for the previous financial year would have been higher by RM122,155,000 and RM21,509,000 respectively. The non-controlling interest (49% ownership interest in RWSB) recognised at the acquisition date was measured by reference to the proportionate share of RWSB’s identifiable net assets.
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