SIQ – Smartgroup Corporation | Aussie Stock Forums

On July 2 2014, Smartgroup Corporation Ltd (formerly Smartgroup Investments Ltd) undertook an initial public offering on the Australian Stock Exchange. In the half year ended 30 June 2014, the Group incurred qualifying transaction costs of $2,467,000 in anticipation of the issurance of orginary shares under the initial public offering. The qualifying transaction costs have been measured as being the portion ofthe transaction costs that relate to the issue of new shares under the initial public offering.

The Group has elected to defer the qualifying transaction costs of $1,727,000, net of income tax, on the balance sheet as at 30 June 2014 until the shares are issued on the date of the Initial public offering. The deferred costs will be subsequently reclassified as a deduction from equity when the shares are recognised as required under AASB 132. The cash outflows that relate to these qualifying transaction costs has been recofnised as a Cashflow from financing activities in the Conslidated statement of cash flows.

The Group has also incurred several transction costs which are not considered to be qualifying assets. These have been classified as Transaction costs in profit and loss for the half year ended 30 June 2014, a total of $10,636,000. The portion of cash outflows that relate to other expenses incurred in relation to the initial public offering have been classified as Cashflow from operating activities in the Consolidated statement of cash flows.