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Racing Australia Annual Report 2015
amount of any non-controlling interest in the acquiree.
For each business combination the non-controlling
interest in the acquiree is measured at either fair
value or at the proportionate share of the acquiree’s
identifiable net assets. All acquisition costs are
expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity
assesses the financial assets acquired and liabilities
assumed for appropriate classification and designation
in accordance with the contractual terms, economic
conditions, the consolidated entity’s operating or
accounting policies and other pertinent conditions in
existence at the acquisition date.
Where the business combination is achieved in stages,
the consolidated entity remeasures its previously held
equity interest in the acquiree at the acquisition date
fair value and the difference between the fair value and
the previous carrying amount is recognised in profit and
loss.
Contingent consideration to be transferred by the
acquirer is recognised at the acquisition date fair value.
Subsequent changes in the fair value of the contingent
consideration classified as an asset or liability is
recognised in profit and loss. Contingent consideration
classified as equity is not measured and its subsequent
settlement is accounted for within equity.
The difference between the acquisition date fair value
of assets acquired, liabilities assumed and any non-
controlling interest in the acquiree and the fair value of
the consideration transferred and the fair value of any
pre-existing investment in the acquiree is recognised
as goodwill. If the consideration transferred and the
pre-existing fair value is less than the fair value of
the identifiable net assets acquired, being a bargain
purchase to the acquirer, the difference is recognised
as a gain directly in profit and loss by the acquirer on
the acquisition date, but only after a reassessment of
the identification and measurement of the net assets
acquired, the non-controlling interest in the acquiree,
if any, the consideration transferred and the acquirer’s
previously held equity interest in the acquirer.
Business combinations are initially accounted for
on a provisional basis. The acquirer retrospectively
adjusts the provisional amounts recognised and
also recognises additional assets or liabilities during
the measurement period based on new information
obtained about the facts and circumstances that existed
at the acquisition date. The measurement period
ends either the earlier of (i) 12 months from the date
of acquisition or (ii) when the acquirer receives all the
information possible to determine the fair value.
NOTES TO AND FORMING PART OF
THE FINANCIAL STATEMENTS
For the year ended 30 June 2015
Racing Australia Pty Ltd
| ACN 105 994 330 and Controlled Entities | Annual Report for the Financial Year Ended 30 June 2015
