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 20. Assets and liabilities held for sale Accounting policies Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs of sale. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets or employee benefit assets, which continue to be measured in accordance with the Group’s other accounting policies. Impairment losses on initial classification as held-for-sale and subsequent gains or losses on remeasurement are recognised in profit and loss. Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted. In May 2021, the Group announced that it had entered into a binding agreement to transfer ownership of its Malaysia and Thailand entities to PropertyGuru Pte Ltd (“PropertyGuru”), a leading digital proptech company operating marketplaces in Asia, in exchange for an 18% equity interest in PropertyGuru (16.6% diluted). The transaction completed on 3 August 2021, refer to Note 27. As part of the agreement, the Group entered into a contract to sell the 27% interest in 99 Group Pte. Ltd. (“99 Group”) and associated convertible note prior to completion. Accordingly, the Malaysia and Thailand entities and 99 Group investment and associated convertible note are presented as a disposal group held for sale at 30 June 2021. (a) Assets and liabilities of disposal group held for sale At 30 June 2021, the disposal group was stated at the lower of their carrying amount and fair value less costs of sale and comprised the following assets and liabilities 1 . Notes 2021 $’000 Cash and cash equivalents 4,888 Trade and other receivables 2,031 Property, plant and equipment 23 2,101 Intangible assets 2 6 191,468 Other non-current assets 11,671 Investment in associates and joint ventures 9,406 Assets of disposal group held for sale 221,565 Trade and other payables 4,588 Current tax liabilities / (assets) (103) Provisions 421 Contract liabilities 3,960 Interest bearing loans and borrowings 1,064 Deferred tax liabilities 7 18,528 Liabilities of disposal group held for sale 28,458 Net assets of disposal group held for sale 193,107 1 Financial assets and liabilities are measured at historical cost, except for other non-current assets which include convertible note receivables of $11.5 million (2020: $ nil) measured at fair value through the profit or loss. 2 The Asia goodwill balance has been allocated between the disposal group and the residual Asia operations based on their relative value. (b) Cumulative income or expenses included in OCI There is $3.7 million relating to historical foreign exchange losses included in OCI relating to the disposal group. 110 Financial Statements