140 / 156
NOTES TO THE FINANCIAL STATEMENTS
continued
for the year ended 30 June 2015
34. Business combinations and transactions with subsidiary
continued
June 2014
Consideration
transferred
34.4 Gain on bargain purchase
Consideration transferred
758 264
Less:
Fair value of identifiable net assets acquired
(861 159)
Gain on bargain purchase
(102 895)
The gain on bargain purchase amounting to R102,9 million relates to Hyprop’s acquisition of African Land and was calculated in
terms of IFRS 3
Business Combinations
. The gain represents the amount by which the fair value of net assets acquired exceeds
the consideration paid and has no impact on distributable earnings. The initial accounting for the business combination at
31 December 2013 was based on provisional amounts which resulted in a reported gain on bargain purchase of R64,8 million. The
gain on bargain purchase at 30 June 2014 was adjusted retrospectively in accordance with IFRS 3.45.
The gain on bargain purchase arose as a consequence of the effective purchase price for Manda Hill (Lusaka, Zambia) being
lower than the most recent fair valuation of the property.
34.5 Impact of acquisition on results of the group for June 2014
Revenue for the 2014 year includes R78 million attributable to revenue from African Land.
Included in profit for the 2014 year is R62,3 million of profit from African Land.
Had the business combination been effected on 1 July 2013, the total Hyprop consolidated revenue would have been R2,6 billion
and the total Hyprop consolidated profit would have been R1,9 billion.
34.6 Net cash outflow on acquisition of African Land
Consideration transferred
758 264
Cash
747 769
Hyprop units issued
10 495
Less:
Cash and cash equivalents acquired
(12 012)
Less:
Hyprop units issued
(10 495)
Net cash outflow
735 757
138
Hyprop Investments Limited
Integrated Report 2015
FINANCIAL STATEMENTS