ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 182 Focused 16. INVESTMENT IN AN ASSOCIATE As at 31 December As at 31 December 2019 2018 USD’000 USD’000 Share of net assets – 6,941 Goodwill on acquisition – 2,393 – 9,334 Particulars of the Group’s associate are as follows: Effective percentage of ownership Particulars of Place of interest issued incorporation attributable Principal Name shares held and business to the Group activity Sabana Investment Partners Pte. Ltd. Ordinary shares Singapore 42.8% Investment holding Note: On 28 June 2019, the Group has, through its wholly-owned subsidiary Infinitysub Pte. Ltd., completed the acquisition of 51% interest in Sabana Investment Partners Pte. Ltd. (“SIP”) from Vibrant Group Limited (Vibrant). The Group previously has 42.8% interest in SIP. After the acquisition, the Group accounts for its 93.8% interest in SIP as an investment in subsidiary (Note 34). 17. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS As at 31 December As at 31 December 2019 2018 USD’000 USD’000 Unquoted equity interests, at fair value (i) 589,417 335,771 Note: (i) The fair value of these investments is estimated based on the Group’s share of the net asset value of the investment funds and associates. In accordance with the exemption in IAS 28 Investments in associates, the Group does not account for its investments in associates and joint venture using equity method if the Group acts as investment fund managers. Instead, the Group has elected to measure its investments in associates and joint ventures at fair value through profit or loss in accordance with IFRS 9. This exemption is related to the fact that fair value measurement provides more useful information for users of the financial statements than application of the equity method. This is an exemption from the requirement to measure interests in associates using the equity method, rather than an exception to the scope of IAS 28 for the accounting for associates and a joint venture.