MITSUBISHI ESTATE Annual Report 2014
Financial section2.Common control transaction etc.(1) Outline of the transactioni.Name and business of the combined entity Name:MM Development Tokutei Mokuteki Kaisya Business:Holding, developing and disposing of real estateii.Date of the transaction August 2, 2013iii.Legal form of the transaction Purchase of the existing preferred stocks from minority stockholdersiv.Name of the combined entity after the transaction MM Development Tokutei Mokuteki Kaisyav.Other matters with regard to the transaction To increase the flexibility and the swiftness of managerial decision making by purchasing the preferred stocks owned by minority stockholders(2) Outline of the accounting treatmentThe transaction was treated as a transaction under common control in accordance with the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21 of December 26, 2008) and the “Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10 of December 26, 2008).(3) Consideration transferred for the acquisitionCash consideration of ¥6,448 million ($62,657 thousand)(4) Amount of goodwill recorded, its cause and method and period of amortizationi.Amount: ¥22 million ($221 thousand)ii.Cause: The consideration transferred was greater than the fair value of the net assets acquired.iii.Method and period of amortization: Expensed in full in the fiscal year ended March 31, 201423 Significant Subsequent EventsConsolidation of an anonymous partnership, Tokumei Kumiai First M(1) Outline of the business combinationi.Name and business of the acquired entity Name:Tokumei Kumiai First M Business:Holding, developing and disposing of real estate ii.Objective of the acquisition Managerial decision making on the operational strategy of the rental office building owned by Tokumei Kumiai First M is necessary since the sole lessee will vacate the property.iii.Date of the acquisition April 7, 2014iv.Legal form of the acquisition —v.Name of the acquired entity after the acquisition Tokumei Kumiai First Mvi.Change in the ownership ratio No change from the existing 51%vii.Major rationale for determining the acquirer In the course of starting to undertake managerial decision making on the operational strategy for the rental office building owned by Tokumei Kumiai First M, the Company obtained substantial control of the acquired entity.(2) Consideration transferred for the acquisitionCash consideration of ¥1,883 million ($18,300 thousand)(3) Amount of the recognized gain on negative goodwill and its causeAmount:Approximately ¥12.0 billion ($116 million)Cause:The consideration transferred was less than the fair value of the net assets acquired(4) Amount of the assets acquired and the liabilities assumed at the acquisition date and their major categories (approximate amounts)Current assets¥ 6.5 billion ($ 63 million)Fixed assets¥118.4 billion ($1,150 million)Total assets¥124.9 billion ($1,213 million)Current liabilities¥ 0.7 billion ($ 6 million)Long-term liabilities¥ 84.0 billion ($ 816 million)Total liabilities¥ 84.7 billion ($ 823 million)76MITSUBISHI ESTATE CO., LTD.