| 49. | Business Combination |
| (a) | General information |
On December 17, 2017, the Group acquired the retail business of ANZ Vietnam to increase business competitiveness and to achieve synergy effect in the banking business in Vietnam. Goodwill of W42,103 million arising from the acquisition is due to the synergy generated by the combination of the Group’s business with the acquired retail business and the customer base.
| (b) | Fair value of assets and liabilities |
Fair value of assets acquired and liabilities assumed by acquisition of ANZ as of acquisition date is as follows:
| Amount(*) | ||||
|
Asset: |
||||
|
Cash and due from banks |
8,151 | |||
|
Property and equipment |
538 | |||
|
Receivable |
301,766 | |||
|
Other assets |
9,269 | |||
|
|
|
|||
| 319,724 | ||||
|
Liabilities: |
||||
|
Accounts payable |
(436,285 | ) | ||
|
Other liabilities |
(1,022 | ) | ||
|
|
|
|||
| (437,307 | ) | |||
|
|
|
|||
|
The fair value of the identifiable assets |
(117,583 | ) | ||
|
|
|
|||
| (*) | The accounting treatments for this business combination has not been completed by the end of the reporting period. The goodwill amount may be changed due to fair value assessments of identifiable assets liabilities for allocation of acquisition consideration. |
| (c) | Goodwill |
Goodwill arising from the acquisitions has been recognized as follows:
| Amount | ||||
|
Consideration received (cash) |
75,480 | |||
|
Fair value of identifiable net assets |
(117,583 | ) | ||
|
|
|
|||
|
Goodwill |
42,103 | |||
|
|
|
|||
| (d) | Acquisition-related costs |
The Group incurred acquisition-related costs of W5,830 million on legal fees and due diligence costs. These costs were included in the administrative expenses.