REA Group Ltd Annual Report 2021

Notes to the Consolidated Financial Statements for the year ended 30 June 2021 REA Group Ltd | Annual Report 2021 19. Business combinations (continued) (iv) Details of net assets and liabilities acquired The following table summarises the recognised amounts of assets acquired and liabilities assumed at the date of acquisition: Fair value recognised on acquisition $ʼ000 Current assets Cash and cash equivalents 9,498 Trade and other receivables 6,990 Total current assets 16,488 Non‑current assets Property, plant and equipment 1,081 Intangible assets 40,057 Other non-current assets 864 Total non‑current assets 42,002 Current liabilities Trade and other payables 5,812 Provisions 1,256 Contract liabilities 4,950 Total current liabilities 12,018 Non-current liabilities Deferred tax liabilities 9,946 Provisions and other payables 2,090 Total non-current liabilities 12,036 Net identifiable assets acquired 34,436 Add: goodwill 163,432 Net assets 197,868 Cash flows on acquisition Cash consideration 49,091 Less: cash acquired (9,498) Outflow of cash 39,593 The fair value of trade and other receivables is $7.0 million and includes trade receivables with a fair value of $3.2 million. The gross contractual amount of trade receivables due is $5.7 million. An expected credit loss of $2.5 million has been disclosed for contractual cash flows not expected to be collected. (v) Acquisition related costs The fair value of the equity interest in Elara held by REA immediately before the acquisition date was $10.9 million. The investment was remeasured immediately before the acquisition resulting in a fair value gain of $1.1 million which was recognised in the Consolidated Income Statement. As part of the acquisition accounting a $7.1 million foreign exchange gain relating to the original investment was transferred from foreign currency translation reserve to the Consolidated Income Statement. A net gain on acquisition was recognised in the Consolidated Income Statement of $3.1 million. This comprised $7.1 million gain from the release of the historic foreign exchange reserve, $1.1 million fair value gain on the original Elara investment, $3.7 million compensation expense relating to historic management incentives and other transaction related costs of $1.4 million. Acquisition related costs have been recognised in the gain/loss on acquisition in the Consolidated Income Statement. 108 Financial Statements