Overseas Chinese Banking Corporation (OCBC Bank)

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Hi kikababoo

Believe you are referring to IFRS 3 Business Combination

http://www.ifrs.org/IFRSs/IFRS-technical...RS%203.pdf
Core principle
An acquirer of a business recognises the assets acquired and liabilities assumed at their acquisition-date fair
values
and discloses information that enables users to evaluate the nature and financial effects of the
acquisition.
(PS: Acquisition date in this case refer to the date of attaining 20% interest)

http://www.iasplus.com/en/standards/ifrs/ifrs3
Business combination achieved in stages (step acquisitions)
Prior to control being obtained, an acquirer accounts for its investment in the equity interests of an acquiree in accordance with the nature of the investment by applying the relevant standard, e.g. IAS 28 Investments in Associates and Joint Ventures (2011), IFRS 11 Joint Arrangements, IAS 39 Financial Instruments: Recognition and Measurement or IFRS 9 Financial Instruments. As part of accounting for the business combination, the acquirer remeasures any previously held interest at fair value and takes this amount into account in the determination of goodwill as noted above [IFRS 3.32] Any resultant gain or loss is recognised in profit or loss or other comprehensive income as appropriate. [IFRS 3.42]
The accounting treatment of an entity's pre-combination interest in an acquiree is consistent with the view that the obtaining of control is a significant economic event that triggers a remeasurement. Consistent with this view, all of the assets and liabilities of the acquiree are fully remeasured in accordance with the requirements of IFRS 3 (generally at fair value). Accordingly, the determination of goodwill occurs only at the acquisition date. This is different to the accounting for step acquisitions under IFRS 3(2004).

For piecemeal (step) acquisition of investment in associate, it has to be read together with IFRS 3.
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Thumbs Up 
thanks for posting the relevant standard up!

(02-11-2014, 08:00 PM)Yoyo Wrote: Hi kikababoo

Believe you are referring to IFRS 3 Business Combination

http://www.ifrs.org/IFRSs/IFRS-technical...RS%203.pdf
Core principle
An acquirer of a business recognises the assets acquired and liabilities assumed at their acquisition-date fair
values
and discloses information that enables users to evaluate the nature and financial effects of the
acquisition.
(PS: Acquisition date in this case refer to the date of attaining 20% interest)

http://www.iasplus.com/en/standards/ifrs/ifrs3
Business combination achieved in stages (step acquisitions)
Prior to control being obtained, an acquirer accounts for its investment in the equity interests of an acquiree in accordance with the nature of the investment by applying the relevant standard, e.g. IAS 28 Investments in Associates and Joint Ventures (2011), IFRS 11 Joint Arrangements, IAS 39 Financial Instruments: Recognition and Measurement or IFRS 9 Financial Instruments. As part of accounting for the business combination, the acquirer remeasures any previously held interest at fair value and takes this amount into account in the determination of goodwill as noted above [IFRS 3.32] Any resultant gain or loss is recognised in profit or loss or other comprehensive income as appropriate. [IFRS 3.42]
The accounting treatment of an entity's pre-combination interest in an acquiree is consistent with the view that the obtaining of control is a significant economic event that triggers a remeasurement. Consistent with this view, all of the assets and liabilities of the acquiree are fully remeasured in accordance with the requirements of IFRS 3 (generally at fair value). Accordingly, the determination of goodwill occurs only at the acquisition date. This is different to the accounting for step acquisitions under IFRS 3(2004).

For piecemeal (step) acquisition of investment in associate, it has to be read together with IFRS 3.
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hey yoyo, yeap thats the part i was referring to. but to be honest im not exactly sure how this process is carried out. as in the fair value part haha.

always abit skeptical abt fair value.
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http://www.theedgemarkets.com/sg/article...93-million

OCBC 1Q2015 earnings up 11% at $993 million

By Frankie Ho / theedgemarkets.com | April 30, 2015 : 7:31 AM MYT
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SINGAPORE (April 30): Oversea-Chinese Banking Corp's 1Q2015 earnings rose 11% y-o-y to $993 million as business grew across its key markets.

Net interest income increased 15% to $1.25 billion on higher loans growth.

Net interest margin fell, however, to 1.62% from 1.70%, as a lower loans-to-deposits ratio and weaker income from money market gapping activities offset better customer loan spreads in Singapore.

Non-interest income rose 7% to $859 million, driven by its wealth management, brokerage and fund management operations.

Contributions from associates increased to $89 million from $17 million, driven mainly by Bank of Ningbo, which became a 20%-owned associate in September last year.

Allowances for loans and other assets increased to $64 million from $41 million, partly due to the consolidation of OCBC Wing Hang.

OCBC's non-performing loans ratio slipped to 0.6% from 0.7%.

Compared to 4Q2014, OCBC's earnings for the March quarter rose 26%, aided by higher fee income, net trading income and profits from life assurance.

OCBC shares ended 0.6% higher at $10.88 yesterday.
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OCBC warns of tough credit environment ahead
http://www.cnbc.com/id/102681066
You can find more of my postings in http://investideas.net/forum/
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White elephant...

http://www.straitstimes.com/news/singapo...s-20150518
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Myanmar moves, 10 MOUs: http://btd.sg/1GPGmbV
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Good The TGIF Morning Everyone.

Q2 result is out.

18cts div....can opt for scrip div again.

http://infopub.sgx.com/FileOpen/OCBC_2Q1...eID=362616

<vested-oldpot><not a call to buy or sell>
Not a call to Buy or Sell

Mr Bump: All I Can Smell Is My FEAR
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Further info on the recent OCBC 2Q report...

(not vested)

Singapore's OCBC posts record Q2 profit; UOB earnings decline

SINGAPORE - Oversea-Chinese Banking Corp (OCBC), Singapore's second-biggest lender, beat expectations with a 14 per cent rise to record profit in the second quarter, helped by strong growth in loans and fee income.

But smaller rival United Overseas Bank posted a 5.7 per cent decline in quarterly profit, hit by lower trading income and slower loan growth.

OCBC's net profit came in at S$1.05 billion in the three months ended June, more than S$921 million earned a year earlier and an average forecast of S$971 million from seven analysts polled by Reuters.

UOB said net profit for the quarter was S$762 million, below S$808 million in the same period year ago and the average forecast of S$819 million from five analysts polled by Reuters. REUTERS
http://www.todayonline.com/singapore/sin...gs-decline
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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Result is not that great, most of the growth comes from gain on sale of equity securities. Would also have expected to see more margin expansion?
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