Does anyone clearly understand this report? It says that in the...

Does anyone clearly understand this report? It says that in the directors' view the fair value of the consideration paid for the assets was $20,362,076. And the net book value of the assets, including intangibles, at year end was $35,175. The difference (less minor operating losses etc) has been debited to a Premium on assets acquired account (see Note 1 on page 4) and appears as part of 'reserves' on page 3. Does that mean that the directors accepted the book value of $35,175 as fair value of the company at year end and wrote off the difference? Or does it mean that they reckoned the company was worth what they paid for it (less minor operating losses etc), and the $20,296,464 was still being carried on the books as some sort of indication of what the company was worth at year end (pre IPO take up)? I'm inclined to the lower valuation, the market seems inclined to the higher one: what are the directors and the accountants saying in this report??