The release of negative goodwill relates to negative goodwill arising from the purchase of the trade and assets as set out in note 7. Acquisition expenses relate to one off costs paid on acquisition of the trade and assets on 14 June 2012 from RFC 2012 plc. 5. Earnings per Ordinary Share Earnings per ordinary share has been calculated as follows. No share options or convertible shares are held within the Group, therefore no diluted Earnings per Share calculation is required. 7 month period to 31 December 2012 Earnings for the purpose of basic earnings per share, being profit for the 7 months (£’000) 9,314 Weighted average number of shares for the purpose of basic earnings per share 29,307,654 Earnings per ordinary share 31.8p 6. Taxation A deferred tax asset has been calculated at £1,675,000 in relation to losses incurred during the period. In the opinion of the Directors it would not currently be prudent to record this asset at 31 December 2012 due to an element of uncertainty with regards to the timing of when the asset would be recovered if sufficient profits arose in the future. No provision for current tax has been made, as the release of negative goodwill is a non-taxable item. 7. Acquisition On 14 June 2012 RFCL purchased the trade and assets of RFC 2012 plc, which was in administration. Under the sale and purchase agreement (SPA) the total acquisition cost of the assets was recorded as £5.5 million. Fair value adjustments have been made as per below. SPA Fair value Fair value Cost adjustment to Group £’000 £’000 £’000 £’000 Properties, plant and equipment: 1,500 5,000 6,500 — Stadium and training facility Other properties, plant and equipment 1,250 220 1,470 — Intangibles assets: 2,750 825 3,575 — Player registrations 16,042 16,042 — — Liabilities: (372) (372) — — Cost of player disposals Liability acquired (1,200) 1,200 — — 5,500 (1,200) 22,915 27,215 Negative goodwill (20,465) Total consideration 6,750 Satisfied by: 5,500 Cash Preacquisition costs 1,250 Total consideration transferred 6,750 Details of the fair value adjustments are as follows;
The release of negative goodwill relates to negative goodwill arising from the purchase of the trade and assets as set out in note 7. Acquisition expenses relate to one off costs paid on acquisition of the trade and assets on 14 June 2012 from RFC 2012 plc. 5. Earnings per Ordinary Share Earnings per ordinary share has been calculated as follows. No share options or convertible shares are held within the Group, therefore no diluted Earnings per Share calculation is required. 7 month period to 31 December 2012 Earnings for the purpose of basic earnings per share, being profit for the 7 months (£’000) 9,314 Weighted average number of shares for the purpose of basic earnings per share 29,307,654 Earnings per ordinary share 31.8p 6. Taxation A deferred tax asset has been calculated at £1,675,000 in relation to losses incurred during the period. In the opinion of the Directors it would not currently be prudent to record this asset at 31 December 2012 due to an element of uncertainty with regards to the timing of when the asset would be recovered if sufficient profits arose in the future. No provision for current tax has been made, as the release of negative goodwill is a non-taxable item. 7. Acquisition On 14 June 2012 RFCL purchased the trade and assets of RFC 2012 plc, which was in administration. Under the sale and purchase agreement (SPA) the total acquisition cost of the assets was recorded as £5.5 million. Fair value adjustments have been made as per below. SPA Cost £’000 £’000 Fair value adjustment £’000 Fair value to Group £’000 Properties, plant and equipment: Stadium and training facility 1,500 — 5,000 6,500 Other properties, plant and equipment 1,250 — 220 1,470 Intangibles assets: Player registrations 2,750 — 825 3,575 — — 16,042 16,042 Liabilities: Cost of player disposals — — (372) (372) Liability acquired — (1,200) 1,200 — 5,500 (1,200) 22,915 27,215 Negative goodwill (20,465) Total consideration 6,750 Satisfied by: Cash 5,500 Preacquisition costs 1,250 Total consideration transferred 6,750 Details of the fair value adjustments are as follows;