BUSINESS ACQUISITION (Tables)

12 Months Ended

Dec. 31, 2013

Details of purchase consideration, net assets aquired and goodwill

Details of the purchase consideration, the net assets acquired and goodwill are as follows:



(in thousands of $)			January 18, 2012
Fair value of previously held 50% equity interest (a)			19,500
Purchase consideration - cash			19,500
Total assumed acquisition consideration			39,000
Less: Fair value of net assets acquired:
Vessel and equipment, net	40,000
Inventories	931
Cash	62
Prepayments	40
Other liabilities	(100	)
Subtotal			(40,933	)
Gain on bargain purchase of Bluewater Gandria			(1,933	)

Aquisition impact on income statement

The impact on the statement of operations of the acquisition of Bluewater Gandria is as follows:



(in thousands of $)
Gain on remeasurement (a)	2,356
Gain on bargain	1,933
Less: Acquisition related costs	(205	)
Total gain on acquisition of Bluewater Gandria	4,084

As a result of acquiring the remaining 50% equity interest, we recognized a gain on bargain purchase of the Bluewater Gandria as the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired. We performed an assessment of the fair values of the assets acquired, liabilities assumed and consideration transferred. The assessment confirmed our gain on bargain purchase.

a) Remeasurement of equity investment in Bluewater Gandria

Remeausrement of equity method investment

On January 18, 2012, we remeasured our previously held 50% equity interest in Bluewater Gandria to its fair value as set forth in the table below:



(in thousands of $)	Equity investment in Bluewater Gandria
Fair value of previously held 50% equity interest	19,500
Less: Carrying value at acquisition date	(17,144	)
Gain on remeasurement of equity interest	2,356

The fair value of our previously held investment in Bluewater Gandria was assumed to be equal to the purchase price of $19.5 million paid to Bluewater in respect of our 50% share in the joint venture.

b) Revenue and profit contributions