Boskalis_Annual Report_2017

88 ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 88 The following valuation methods were used in assessing the fair value of identified, material, assets and liabilities:  The fair value of the property and vessels is mainly determined based on a market approach performed by an external valuator.  The fair value of other material assets identified and liabilities assumed, including creditors and debtors, is based on the market value at which the assets or liabilities are or could be settled with contractual parties. Net accounts receivables, under current receivables and other current assets, consist of a gross amount of EUR 13.6 million, of which an amount of EUR 1.1 million was deemed irrecoverable at the date of acquisition. Bargain purchase The business combination resulted in a gain on acquisition, recognized in Other income in the Consolidated Statement of Profit or Loss, because the net amount of assets acquired and liabilities assumed is higher than the consideration paid. A gain was anticipated, to a certain extent, given the financial position of Gardline and agreement with the seller that expenses required for the restructuring of Gardline would be borne by the Group. These expenses did not qualify as an assumed liability under IFRS at 15 August 2017. Before recognizing the gain the Group reassessed the completeness of assets identified and liabilities assumed, and also reassessed the underlying assumptions and measurement techniques. At 15 August 2017 Total consideration paid at 15 August 2017 Less: Net amount of identified assets acquired and liabilities assumed Result from bargain purchase of business combination No deferred tax liability was recognized in the Consolidated Statement of Profit or Loss with respect to the profit relating to the bargain purchase of this business combination amounting to EUR 24.1 million. This result is tax exempt. Transactions related to the acquisition The Group incurred costs of EUR 1.2 million for the services of external advisors relating to this transaction. These costs are included in the Consolidated Statement of Profit or Loss in the line ‘Raw materials, consumables, services and subcontracted work’ and are incorporated in the segment result under Offshore Energy. DIVESTMENT OF STAKE IN FUGRO N.V. 5.2 As at 31 December 2016 the investment of 9.4% in Fugro N.V. was reported in the consolidated balance sheet as a financial instrument available-for-sale under Non-current financial assets. On 28 February 2017 the Group sold its remaining investment in Fugro N.V. through an accelerated book-build at EUR 14.50 per share. The net proceeds amounted to EUR 114.1 million, which was EUR 0.9 million lower than the cost price. As a result, the impact of Fugro N.V. on the net result in 2017 was a loss of EUR 0.9 million (2016: loss of EUR 30.1 million). ASSETS AND LIABILITIES HELD FOR SALE 5.3 At year-end 2017 no activities were classified as held for sale. The assets and liabilities of activities held for sale at year-end 2016 are summarized as follows: 2017 Property, plant and equipment - Receivables and other non-current assets - Cash and cash equivalents - Assets of disposal groups - Provisions - Creditors and other current liabilities - Liabilities of disposal groups - 37,373 - 61,506 - 24,133

2016

1,244 2,777 5,606 9,627

450

7,259 7,709