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5. Sale of Kapuni Gas interests continued
Consideration
At completion of the sale on 31 March 2020, the group recognised total consideration of $84.3 million represented entirely by the fair value of a contingent consideration at completion date. The contingent consideration was classif ied as a f inancial asset measured at fair value through prof it or loss. Net gains and losses recognised in the prof it or loss and arising from the contingent consideration subsequent to completion comprises: — Fair value movement, which represents changes in management estimates and assumptions used to determine fair value at each reporting date; and — Interest income, which represents the unwinding of the discounting applied in calculating the fair value at each reporting. At reporting date, the consideration was remeasured to $84.7 million. The gain this year reflects interest income recognised in the three months between completion date and balance date only. Refer to the table below for a reconciliation between fair value calculated at completion and at balance date.
2020 $M
NOTE
Carrying value of contingent consideration At completion of sale at 31 March 2020
84.3
1.7
Unwinding of interest
8 9
(1.0) (0.3)
Consideration due reclassif ied to receivables
Payments received
Balance at 30 June 2020
84.7
Comprising: Current Non–current
5.2
79.5
THE INTERPLAY OF TODAY AND TOMORROW
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