On 1 August 2014, Steadfast Ltd acquired Ausure group that consist of Ausure Group Pty Ltd and its controlled entities for 73.82% of equity interest in Ausure Group Pty Ltd (Ausure Group), which holds 65.00% equity interest in Ausure Financial Services …show more content…
Because the amount consideration is exceeding the fair value, there will be a goodwill arising in this acquisition. And there are non-controlling interests (NCI) acquired for A$1,417,000, which will add the amount of goodwill recognise where it comes to the amount of A$20,601,000 (Steadfast 2015 p.70, Notes to Financial Statements – Note 10). Goodwill that arises in the Group is not expected to be deductible for tax purposes. In compliance with AASB 137 a contingent consideration is a possible asset or obligation that arises from past events and will be confirmed only for one or more uncertain future events not wholly within the control of the entity. Furthermore, in this case there is no evidence of contingent consideration in the annual …show more content…
In this case Steadfast have power over Ausure Pty Ltd because there are existing rights that give the current ability to direct the relevant activities, and Steadfast can affect the investor’s returns from its involvement with the investee. Moreover, AASB 127 explained control exist when parent owns through subsidiary more than half the coting shares of an entity, which in this case Steadfast owns 73.82% that represent the ownership of Ausure Pty