Huawei 2012 Annual Report Download - page 82

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Consolidated Financial Statements Summary and Notes
79
Goodwill
Goodwill was recognised as a result of the acquisition as follows:
Recognised values on acquisition
2012 2011
Huawei
Digital HK
Beijing Huawei
Longshine ITS Bahrain
CNY’million CNY’million CNY’million
(restated)
Note 25(c)(i) Note 25(c)(ii) Note 25(c)(iii)
Total consideration paid 3,337 116 419
Fair value of pre-existing interest 315 142 –
Fair value of identifiable net assets (393) (104) (198)
3,259 154 221
Huawei Digital HK
The remeasurement to fair value of the Group’s
existing 51% interest in Huawei Digital HK resulted
in a gain of CNY269,107,000, which has been
included in “other income” in the consolidated
income statement.
The goodwill is attributable mainly to the skills
and technical talent of Huawei Digital HK’s work
force, and the synergies expected to be achieved
from integrating the company into the Group’s
existing security and storage technology business.
None of the goodwill recognised is expected to be
deductible for tax purposes.
Beijing Huawei Longshine
The remeasurement to fair value of the Group’s
existing 52% interest in Beijing Huawei Longshine
resulted in a loss of CNY24,152,000, which has
been included in “other operating expenses” in
the consolidated income statement.
The goodwill is attributable mainly to the skills and
technical talent of Beijing Huawei Longshine’s work
force, and the synergies expected to be achieved
from integrating Beijing Huawei Longshine into the
Group’s existing software business. None of the
goodwill recognised is expected to be deductible
for tax purposes.
Other business combination
Other business combination during the financial
year which does not have any material effect on
the financial position and results of the Group is
not shown above.