190 | CapitaLand Limited Annual Report 2014
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
32 BUSINESS COMBINATIONS
(cont’d)
(IIHFWV RI FDVK ÁRZV RI WKH *URXS
2013
$’000
Purchase consideration paid
91,298
Less Cash and cash equivalents in subsidiary acquired
(2,807)
Net cash outnow on acquisition
88,491
,GHQWLÀDEOH DVVHWV DFTXLUHG DQG OLDELOLWLHV DVVXPHG
2013
$’000
Property, plant and equipment
365
Investment properties
76,420
Current assets
3,482
Current liabilities
(1,711)
Non-current liabilities
(472)
Total identimable net assets
78,084
Goodwill on acquisition
13,214
Purchase consideration
91,298
Acquisition-related costs
Acquisition-related costs of $1.0 million related to stamp duties, legal and due diligence fees were included in
administrative expenses in the consolidated income statement for the year ended 31 December 2013.
33 FINANCIAL RISK MANAGEMENT
(a) Financial risk management objectives and policies
The Group and the Company are exposed to market risk (including interest rate, foreign currency and
price risks), credit risk and liquidity risk arising from its diversimed business. The Group’s risk management
approach seeks to minimise the potential material adverse effects from these exposures. The Group uses
mnancial instruments such as currency forwards, interest rate swaps and cross currency swaps as well as
foreign currency borrowings to hedge certain mnancial risk exposures.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework. The Board has established the Risk Committee to strengthen its risk management
processes and framework. The Risk Committee is assisted by an independent unit called the Risk Assessment
Group (RAG). RAG generates a comprehensive portfolio risk report to assist the committee. This quarterly
report measures a spectrum of risks, including property market risks, construction risks, interest rate risks,
remnancing risks and currency risks.
