INTEGRATED ANNUAL
REPORT 2020

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Notes to the consolidated financial statements

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44.

BUSINESS ACQUISITION

Acquisition of Riverside Conference Centre

The group concluded an agreement with Riverside Conference Centre Proprietary Limited to acquire its conferencing business effective 1 May 2019. The fair value of the net asset acquired is equal to the fair value of the consideration paid at the date of acquisition. The total consideration payable in cash amounted to R8 million. The acquired business contributed R8 million to revenue for the year ended 31 March 2020.

The group have assessed the acquisition of the Riverside conferencing business and have concluded that the conference centre meets the definition of a business as defined in terms of IFRS 3 Business Combinations, as there are adequate processes identified to warrant classification as a business.

Rm
Non-current assets  
Other intangible assets – intellectual property 11
Deferred tax liability (3)
Net assets acquired 8
Less: Purchase consideration paid in cash – investing activities (8)
Goodwill arising on purchase –
Net outflow of cash on acquisition
Purchase consideration paid (8)
Net outflow of cash on acquisition (8)

No goodwill arose on the acquisition.

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