MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS MISC BERHAD | Annual Report 2017 228 15. INVESTMENTS IN SUBSIDIARIES (CONT'D.) (a) Additional investments in subsidiaries (cont'd.) (ii) In the previous financial year (cont'd.) (b) Gain on acquisition of subsidiary RM'000 Purchase consideration satisfied in cash 1,727,489 Fair value of equity interests previously owned at the date of acquisition, net of intra-group elimination 2,551,031 4,278,520 Less: Fair value of net identifiable assets (5,102,062) Gain on acquisition of subsidiary (823,542) (c) The Group had on 7 July 2015 acquired the entire equity interest in MISC Maritime Services Sdn. Bhd. (formerly known as PETRONAS Maritime Services Sdn. Bhd. ("PMSSB")) from its immediate holding company, Petroliam Nasional Berhad ("PETRONAS") for a cash consideration of RM54,111,000. However, the Group did not complete the initial accounting for business combination in the year of acquisition, pending determination of the fair value of the net assets acquired. The carrying amount and the fair values of the identifiable assets and liabilities of PMSSB as at the date of acquisition were as follows: At carrying amount RM'000 At fair value RM'000 Non-current assets 1,626 49,079 Current assets 71,074 71,074 Current liabilities (18,589) (18,589) Net identifiable assets and liabilities 54,111 101,564 Less: Negative goodwill on acquisition (47,453) Purchase consideration 54,111