Deloitte

,

International GAAP Holdings Limited Model financial statements for the year ended 31

Content Contacts s Section 1 - Overview of new and revised International Financial Reporting Standards (IFRSs)
IFRS global office Global IFRS - Clients and Markets Joel Section 2 -Leader Model financial statements
Osnoss ifrsglobalofficeuk@deloine.co.uk

1 9

of International GAAP Holdings Limited for the year ended 31 December 2012

Global IFRS Leader - Technical Veronica Poole
ifrsglobalofficeuk@deloitte.co.uk

Global IFRS Communications Co-Directors
Mario Abela and Neil Laverty ifrsglobalofficeuk@deloitte.co.uk

IFRS centres of excellence
Americas

Canada LATCO United States
Asia-Pacific

Karen Higgins Fermin del Valle Robert Uhl

iasplus@deloitte.ca iasplus-LATCO@deloitte.com iasplusamericas@deloitte.com

Australia China Japan Singapore
Europe-Africa

Anna Crawford Stephen Taylor Shinya Iwasaki Shariq Barmaky

iasplus@deloitte.com.au iasplus@deloitte.com. hk iasplus-tokyo@tohmatsu.co.jp iasplus-sg@deloitte.com

Belgium Denmark France Germany Italy Luxembourg Netherlands Russia South Africa Spain United Kingdom

Thomas earlier ian Peter Larsen Laurence Rivat Andreas Barckow Franco Riccomagno Eddy Termaten Ralph ter Hoeven Michael Raikhman Graeme Berry Cleber Custodio Elizabeth Chrispin

BEIFRSBelgium@deloitte.com dk_iasplus@deloitte.dk iasplus@deloitte.fr iasplus@deloitte.de friccomagno@deloitte.it luiasplus@deloitte.lu iasplus@deloitte.nl iasplus@deloitte.ru iasplus@deloitte.co.za iasplus@deloitte.es iasplus@deloitte.co.uk

Deloitte's www.iasplus.com website provides comprehensive information about international financial reporting in general and IASB activities in particular. Unique features include: •daily news about financial reporting globally. •summaries of all Standards, Interpretations and proposals. •many IFRS-related publications available for download. •model IFRS financial statements and checklists. •an electronic library of several hundred IFRS resources. •all Deloitte Touche Tohmatsu Limited comment letters to the IASB. •links to several hundred international accounting websites. •e-learning modules for each IAS and IFRS - at no charge. •information about adoptions of IFRSs around the world. •updates on developments in national accounting standards.

For depreciable investment property, the application the 1 amendments will result in aapplication change in accounting When the deferred IFRS 13 is effective for annual periods beginning on orof after January 2013, with earlier permitted. policy. IFRS 13 should be applied beginning on or after tax associated with an beginning investment was previously determined based on expectations that the propertyof would prospectively as of the ofproperty the annual period in which it is initially applied. The disclosure requirements IFRS be 13 recovered need not be applied 1 January 2013 Retrospective application. Amendments to10, IFRSthere 1 Government Loans •Under IFRS is only one basis for consolidation forapplication all entities, and that basis is control. removes the perceived IAS 31 IFRS 11 This change through use, the measurement basis will need to be changed unless theof 'sale' presumption is rebutted. When the amendments result in a in comparative information provided for periods before initial the Standard. inconsistency between the previous and version IAS 27 and SIC-12 - the former used control concept whilst the latter placed greater require emphasis change to the basis of measurement the of effect is material, prior year amounts are required to be restated as the amendments 1 January 2013 Retrospective application. Amendments to IFRS 7 Disclosures Offsetting Financial This section the following: IAS 19 Employee Benefits (as revised in 2011) on risks andcovers rewards. full retrospective application. Assets and Financial Liabilities ► Joint operation (Effective for annual periods beginning on or after 1 January 2013) Jointly controlled entity accounted for •an overview of new and revised International Financial Reporting Standards (IFRSs) that are mandatorily effective for the ended 31of •A more definition of control has been IFRS 10 in order to address unintentional weaknesses of year the definition 1 developed July 2012 Retrospective application. using equity method New and robust revised IFRSs that are available for early in application Amendments to IAS 1 Presentation of Items of Other The amendments to IAS 19 change the accounting for defined benefit plans and termination benefits. The most significant change relates to the December 2012; and control set out in the previous version of IAS 27. The definition of control in IFRS 10 includes three elements: (a) power over an investee, Comprehensive Income accounting for changes in to defined benefit obligations and plan assets. The amendments require the recognition of changes in defined benefit (b) exposure, or rights, variable returns from its involvement with the investee; and (c) ability to use its power over the investee to January •an overview of new and revised IFRSs are1not yet 2014 mandatorily effective butRetrospective allow early application. application for the year ended 31 December 2012. The following new and revised IFRSs are that not mandatorily effective for the year ended 31 December 2012. However, they are Amendments to IAS 32 Offsetting Financial Assets and obligations and in fair of plan assets when they occur, and hence eliminate the 'corridor approach' permitted under theavailable previousfor version affect the amount ofvalue the investor's returns. ► Financial Liabilities For this purpose,Paragraph the discussion below reflects aentities cut-off date of 31 July 2012. The potential impact of of the application of any new and revised early application. 30 of IAS 8 requires to consider and disclose the potential impact new and revised IFRSs that have Jointly controlled entity accounted for Joint venture (must be of IAS 19 and accelerate the recognition of past service costs. The amendments require all actuarial gains and losses to be recognised using proportionate consolidation accounted for using the equity IFRSs issued byare the IASB after 31 July 2012 but before the financial statements are issued should also be considered and disclosed. been issued but not yet effective. 1 January 2013 Retrospective application. Annual Improvements to IFRSs 2009-2011 Cycle -IFRS 10 requires an investor to focus on activities that significantly affect the asset returns an investee ('relevant activities') in assessing immediately through other comprehensive income in order for the net pension or of liability recognised in the consolidated statement of method of accounting) whether it has control over the investee (not merely financial and operating policies as set out in the previous version of IAS 27). financial position to reflect the date full value the planThe deficit or surplus. The list below reflects a cut-off of 31of July 2012. potential impact of the application of any new and revised IFRSs issued by the IASB Amendments IFRSs that are mandatorily effective for the year ended 31 Therefore, upon application of IFRS 11, the following changes may after 31 July 2012to but before the financial statements are issued also be considered and disclosed. -IFRS 10 replaces the term with the term 'returns' soshould aschanges to clarify that an investor's returns could potentially be positive, negative December 2012 Another significant change to'benefits' IAS 19 relates to the presentation of in defined benefit obligations and plan assets with changes beingor New Interpretation Application occur: Effective for annual periods Headline changes brought about by IFRS 10 are as follows: both. split into three components: beginning on or after provisions. IFRS 11 requires retrospective application with specific transitional -IFRS 10 makes it in clear that there must be a includes linkage between 'power' 'returns from the investee'. 1 January 2013 and •Service cost - Costs recognised in profit or loss and current pastand service cost as well as gains or be losses on settlements. IFRIC 20 Stripping the Production Phase of a Surface This Interpretation should applied to production stripping costs incurred IFRS Disclosure Interests in Other Entities Effective for annual New 12 IFRS on financialof instruments Application periods Mine on or after the beginning of the earliest period presented, with specific •Net interest - recognised in profit or loss and only calculated by applying rate at the beginning the reporting to theare net -IFRS 10 requires that, in assessing control, substantive rights the (i.e.discount rights that their holder has theof practical abilityperiod to exercise) beginning on or after transitional provisions. IFRS 12 is a disclosure standard andbeginning isthe applicable to to entities that have interests in subsidiaries, joint arrangements, associates or defined benefit liability or asset at the of each reporting period. considered. For a right to be substantive, right needs be currently exercisable at the time when decisions about the relevant activities 1 January 2015 Retrospective application, with specific transitional provisions. IFRS 9 Financial Instruments (as revised in 2010) unconsolidated structured entities. need to be made. •Remeasurement - recognised in other comprehensive income and comprises actuarial gains and losses on the defined benefit obligation, the 1 January 2015 Retrospective application, with specificto transitional provisions. IFRS 12 establishes disclosure objectives and minimum disclosures that entities must provide meet those objectives. The Amendments to IFRS 9 and IFRS guidance 7on Mandatory Effective •IFRS 10 adds application to assist in specifies assessing whether investor controls an investee in complex scenarios, including: excess of the actual return plan assets over the change in plan an assets due to the passage of time and the changes, if any, due to the New on financial instruments DateIFRS of IFRS 9 and Transition Disclosures objective of IFRS 12 is that an entity should disclose information that helps users of financial statements evaluate the nature of, and risks impact of the asset ceiling. -Application guidance on when an investor that than per interests cent of the rights statements. of an investee has control over the investee associated with, its interests inrevised other entities andhas theless effects of50 those onvoting its financial IFRS 9 Financial Instruments (as in 2010) As a result, the profit or willfacto no longer include expected return on plan assets; instead, imputed finance income is calculated on the plan (commonly referred toloss as beginning 'de control'). (Effective for annual periods on or after 1 an January 2015) The requirements set out in IFRS 12 Effective are more extensive than thoseApplication in the current standards. Newdisclosure and revised IFRSs on consolidation, joint periods assets and is recognised as part of the net interest cost in for profitannual or loss. Any actual return above or below the imputed finance income on plan arrangements, associates and beginning on or after IFRS 9 (as originally issued in 2009) introduces new requirements for the classification and measurement of financial -Application guidance on disclosures whether a decision maker is acting as a principal or an agent for another party. A decisionassets. maker that has decisionassets is recognised as 10, part of remeasurement inConsolidated other comprehensive income. Amendments to IFRS IFRS 11 and IFRS 12 Financial Statements, Jointthe Arrangements and Disclosure of agent. Interests in Other making authority over the relevant activities of an investee does not have control over investee when it is merely an 1 January 2013 IFRS 10 Consolidated Statements Under IFRS 9, all Financial recognised financial assets that are currently within the scope of IAS 39 with Financial Recognition and Retrospective application, specific Instruments: transitional provisions. Entities: Transition Guidance The amendments to IAS 19 are effective for annual periods beginning on or after 1 January 2013 and require retrospective application with Earlier application is a permitted if of IFRS 11, IFRS 12, IAS (as deemed revised in 2011) Measurement be subsequently measured either amortised or fair value. A debt instrument that (i) is held within a27 business model -Application will guidance on when a particularat set of assets and cost liabilities of an investee (i.e. portion an investee) can be as a certain exceptions. clarify certain transitional guidance on the application ofand IAS 10, 28 (as revised in 2011) are early applied the same time. The amendments IFRS IFRS 11 and IFRS 12 for first time. The major whose objective isfor to collect the contractual cash flows and (ii) has contractual cash flows that are solely payments ofat principal and interest separate entity the purposes of determining whether that portion is a subsidiary of the investor. IFRS 10 the states that a portion of an Amendments to IFRS 1 Severe Hyperinflation clarifications are as follows: on the principal amount outstanding are generally measured at amortised cost. All portion other debt instruments must be measured at fair value Amendments other IFRSs investee is to treated as a separate entity for consolidation purposes when that is economically 'ring-fenced' from the rest of the

Section 1 — Overview of new and revised International Financial Reporting Standards (IFRSs)
Effective for annual periods Application

1 January IFRS 11 profit Joint Arrangements (Effective for annual periods beginning on or after 1 July 2013 2011) through or loss (FVTPL). Retrospective application, with specific transitional provisions. investee. •The amendments that the 'date of initial application' of IFRS 10 means the beginning of the annual reporting period in which IFRS Amendments to IFRSexplain 1 Government Loans Earlier is permitted if IFRS 10, IFRSmeasurement. 12, IAS 27 (as revised in 2011) A fair value option is available (provided that certain specified conditions are met) asapplication an alternative to amortised cost 10 is applied for the first time. and IAS 28 (as revised in 2011) are earlyhyperinflation applied at the same time. to resume (Effective annual periods beginning on or after 1 January 2013) The amendments regarding severe hyperinflation provide guidance for entities emerging from severe either IFRS 10 for does not contain 'bright lines' as to when an investor should or should not consolidate an investee. All equity investments within the scope of IAS 39 are to be measured in the statement of financial position at fair value, with the gains and presenting IFRS financial statements or to present IFRS financial statements for the first time. •The amendments clarifyrelief how a should adjust comparative period(s) retrospectively ifapplication the consolidation conclusion The amendments provide toreporting first-timeentity adopters of IFRSs by amending IFRS 1 to allow prospective of IAS 39 or IFRS 9reached and Overall, the application of IFRS 10 requires significant judgement on a number aspects. losses recognised profit or loss. If an equity investment is not held for trading, of an irrevocable election can be made at initial recognition to 1 January 2013 IFRS 12 Disclosure ofin Interests in Other Entities Retrospective application, with specific transitional provisions. Entities are at the date of initial application under IFRS 10 is different from that under IAS 27/ SIC-12. paragraph 10A of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance to government loans outstanding at the Amendments to IFRS 1 Removal of Fixed Dates for First-time Adopters (Effective for annual periods beginning on or after 1 July 2011) measure the investment at fair value through other comprehensive income (FVTOCI), with only dividend income recognised in encourafpd to provide information requiredgenerally bv IFRS 12 earlier than annual date of10 transition to IFRSs. to reassess whether or not they have control over their IFRS requires investors investees on transition to IFRS 10. In general, IFRS 10 profit or loss. •When the control over an investee was lost the comparative period (e.g. as a adopters result of aof disposal), amendments confirm there is periods beginning on or after from 1 the January 2013. The amendments regarding the removal ofduring fixed dates provide relief to first-time IFRSs reconstructing transactions that requires retrospective application, with certain limited transitional provisions. no need to adjust the comparative figures retrospectively (even though a different consolidation conclusion might have been reached under Amendments to IAS 32 and IFRS 7 Offsetting Financial Assets and Financial Liabilities and the related disclosures (Effective for annual periods 1 January 2013 their date of transition to IFRSs. Amendments to IFRS 10, IFRS 11 and IFRS 9 12was The clarify certain transition guidance the applicationand of IFRS Inoccurred 2010, a before revised version of IFRS issued. The revised version of IFRS 9amendments mainly adds the requirements for theon classification IAS 27/SIC-12 IFRS 10). Joint Regarding the requirements for the preparation consolidated financial statements, most of the requirements beginning on orand after 1 January 2014 and 1 January of 2013 respectively) Consolidated Financial Statements, Arrangements 10, IFRS 11 and IFRS 12 for the first time. have been moved unchanged measurement of financial liabilities and derecognition requirements. One major change from IAS 39 relates toafter the presentation Amendments IFRS 7 Other Disclosures - to Transfers of Financial Assets (Effective for annual periods beginning on or 1 July 2011) of changes in and Disclosure ofto Interests in Entities: Transition from the previous version of IAS 27 IFRS 10. the fair value of a financial liability (designated as at fair value through profit or loss) attributable to changes in investee the credit riskwas of that liability. •When a reporting entity concludes, on the basis of the requirements of IFRS 10, that it should consolidate an that not The amendments to IAS 32 clarify existing application issues relating to the offsetting requirements. Specifically, the amendments clarify the Guidance The amendments to IFRS 7 increase the disclosure for transactions involving transfers of financial assets. These amendments Specifically, under IFRS 9,IFRS for financial liabilities that requirements are designated as FVTPL, the amount of change in IFRS the fair value ofCombinations the financial previously consolidated, 10 requires the entity to set-off' apply acquisition accounting in accordance with 3 Business to are IFRS 11 of Joint Arrangements meaning 'currently has a legally enforceable right of and 'simultaneous realisation and settlement'. The amendments to IAS liability 32 1 January 2013 are intended to provide greater transparency around risk of at transactions where a entity financial asset is transferred but the transferor IASis 27 Separate Financial Statements (as revised Retrospective application. that attributable to changes in the credit of liability is presented indate other comprehensive income, unless the presentation of the measure assets, liabilities and non-controlling interests of exposures the investee the when the obtained control of the investee (based effective for annual periods beginning onin or risk after 1 that January 2014, with retrospective application required. 2011) Earlier application is permitted if IFRS 10, IFRS 11, IFRS 12 and IAS 28 (as IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly Controlled Entities - Non-Monetary Contributions bymismatch Venturers. retains some levelin ofthe continuing in the asset. effects changes liability's credit risk in other comprehensive income would create or enlarge an accounting in profit or on theof requirements of IFRS 10). exposure The amendments clarify which version of IFRS 3 should be used in different scenarios. revised in 2011) and are early applied at the same time. The amendments tofair IFRS 7 require entities disclose liability's information about ofsubsequently offset related arrangements (such as collateral loss. Changes in the value attributable to to a financial credit riskrights are not reclassified to profit or loss. Under IAS 39, Amendments to IAS 12: Deferred Tax Recovery of Underlying Assets (Effective for annual periods beginning on or afterare 1 January 2012) IFRS 11 deals with how a joint arrangement should be classified where two or more parties have joint control. There two types of The joint 1 January 2013 •The amendments provide additional transitional relief by limiting the requirement to application. present adjusted comparative information to the posting requirements) for financial instruments under an enforceable master netting agreement or similar arrangement. IAS 28 Investments in Associates and Joint Ventures (as Retrospective the entire amount of the change in the fair value of the financial liability designated as FVTPL is presented in profit or loss. arrangements under IFRS 11: joint operations and joint ventures. These two types of joint arrangements are distinguished by parties' rights period immediately before the date of initial application. They also eliminate the requirements to present comparative information revised in 2011) Earlier application is permitted if IFRS 10, IFRS 11, IFRS 12 and IAS for 27tax (as amendments to IFRS 7 are for annual periods beginning on or set after 1 in January and interim within those The amendments to IAS 12 required provide an exception to the general principle out IAS 12 2013 Income Taxes thatperiods the measurement of annual deferred and obligations under the arrangements. revised in 2011) areperiod early applied at the same time. In December 2011, the IASB issued Amendments to IFRS 9 and IFRS 7. The amendments defer the mandatory effective date of IFRS 9 from disclosures related to unconsolidated structured entities for any period before the first annual in which IFRS 12 is applied. periods. The disclosures should be provided retrospectively for all comparative periods. should reflect the manner in which an entity expects to recover the carrying amount of an asset. Specifically, the amendments establish a 1 rebuttable January 2013 to 1 January 2015, with early application permitted. The amendments also modify thevalue transitional requirements from IAS 39 presumption that the carrying of an investment property measured using fair model in IAS 40 Investment •The effective of the amendments isamount the same as the effective date of IFRS 10, IFRS 11the and IFRS 12 (i.e. 1on January 2013 for calendarAmendments to date IAS 7 Presentation of Items of Other Comprehensive Income (Effective for annual periods beginning or after 1 July 2012) to IFRS 9. will Property be recovered entirely through sale. The amendments were issued in response to concerns that application of IAS 12's general New IFRS on fair value measurement Application Effective for annual periods year entities). The amendments to IAS 1 introduce new terminology for the statement of comprehensive income and income statement. Under the approach can be difficult or subjective for investment property measured at fair value because it may be that the entity intends to hold beginning on or after At the date of publication of these illustrative financial statements, phases two and three of the financial instruments project, being the the New IFRS on fair value measurement amendments to IAS 1, the statement of comprehensive income is renamed asstill a statement profit orThe lossIASB and other comprehensive income asset for an indefinite or indeterminate period of time, during which it anticipates both rental income and capital appreciation. impairment of financial assets and hedge accounting phases respectively, are a work in of progress. is also considering limited 1 January 2013 Prospective application. IFRS 13 Fairarrangement Value Measurement I Type of joint Features Accounting under IFRS 11 | and the income statement is renamed as a statement ofmeasurement profit or loss. The amendments to IAS 1 retain the to present profit or loss and improvements to IFRS 9 regarding the classification and of financial instruments. Preparers ofoption financial statements should be Under the amendments, unless the presumption is rebutted, the measurement The of the deferred tax liability or 13 deferred asset in is required to disclosure requirements of IFRS need nottax be applied IFRS 13 Fair Value Measurement other comprehensive income in either a single statement or in two separate but consecutive statements. However, the amendments to IAS 1 Joint venture aware of the status of these phases in consideringJoint anyventurers potential early application of IFRS 9. information have rights to the net assets of the Equity methodfor of periods accounting - proportionate comparative provided before initialpresumption application of is (Effective for annual periods beginning on or after Januaryamount 2013) reflect the tax consequences of recovering the 1 carrying of the investment property entirely through sale. The 'sale' require additional disclosures to be made in the other comprehensive income section such that items of other comprehensive income are arrangement. consolidation is not allowed. IFRS 13. rebutted if the investment property is joint depreciable and the investment property is held within a business model whose objective is to consume New and into revised on consolidation, arrangements, associates and disclosures grouped twoIFRSs categories: (a) items will not be reclassified subsequently todisclosures profit or loss; and fair (b) items that may be reclassified Joint 13 operation IFRS establishes a single source of that guidance for fair value measurements and about value measurements. IFRSof 13 does Joint operators have rightsproperty to the assets andtime, rather Each joint operator recognises its share the assets, substantially all of the economic benefits embodied in the investment over than through sale. (Effective for annual periods beginning on or after 1 January 2013) subsequently to profit or loss when specific conditions are met. Income tax on items of at other income is required to be allocated obligations for the liabilities ofor the arrangement. liabilities, revenues and expenses. not change the requirements regarding which items should be measured disclosed fair comprehensive value. on the same basis - the amendments not change the option investment to present of other comprehensive income eithermodel beforein tax or net of tax. Following the application of the amendments, entities holding property accounted for using the fair value accordance In 2011, the IASB issued a package of do five standards on consolidation, jointitems arrangements, associates and disclosures,including IFRS10,IFRS 11, IFRS 13 defines fair value, where establishes a framework for measuring fair value, and requires disclosures about fair value measurements. The with IAS 40 in jurisdictions tax is not imposed on sale of the investment property will no longer recognise deferred tax on any temporary IFRS 12, IAS 27 (as revised in 2011) and IAS 28 (as revised in 2011). scope of IFRS 13 isfrom broad; itvalue applies to both financial instrument and non-financial items which IFRSs require or Under IFRS 11, the existence of a gains separate vehicle is no longer a items sufficient condition for a instrument joint arrangement to be classified as a joint venture differences arising fair or losses (unless the presumption is rebutted). This is because therefor would beother no tax consequences Retrospective application, with specific transitional provisions. IAS 19 Employee Benefits (as revised in 2011) 1 January 2013 permit fair value measurements and disclosures about fair value measurements, except in specified circumstances. In general, the Each of the five standards is effective for annual periods beginning on or after 1 January 2013, with early application permitted.Ingeneral,if whereas, under IAS 31, the establishment of a separate legal vehicle is the key factor in determining the existence of a jointly controlled expected to arise from recovering the carrying amount entirely through sale, regardless of whether the entity intends to use the property to an disclosure requirements in a IFRS 13of are more those required the time. current standards. For example, quantitative and entity wishes early application, it should apply ail extensive of five than standards early at theby same entity. generate rental income for period time prior tothe sale. qualitative disclosures based on the three-level fair value hierarchy currently required for financial instruments only under IFRS 7 Financial IFRS 10 Consolidated Financial Statements Instruments: Disclosures will be extended by IFRS 13 to cover all assets and liabilities within its scope.

IFRS 10 replaces the part of IAS 27 Consolidated and Separate Financial Statements that deals with consolidated financial statements and SIC-12 Consolidation - Special Purpose Entities.

Annual Improvements to IFRSs 2009-2011 Cycle (Effective for annual periods beginning on or after 1 January 2013) The Annual Improvements include amendments to five IFRSs which have been summarised below.

Standard
IFRS 1

Subject of amendment
Repeated application of IFRS 1

Details
The amendments clarify that an entity may apply IFRS 1 if its most recent previous annual financial statements did not contain an explicit and unreserved statement of compliance with IFRSs, even if the entity applied IFRS 1 in the past. An entity that does not elect to apply IFRS 1 must apply IFRSs retrospectively as if there was no interruption. An entity should disclose:

First-time Adoption of International Financial Reporting Standards

Section 2 — Model financial statements of International GAAP Holdings Limited for the year ended 31 December 2012
a)the reason why it stopped applying IFRSs; b)the reason why it is resuming the application of IFRSs; and c)the reason why it has elected not to apply IFRS 1, if applicable. Borrowing costs

The model financial statements of International GAAP Holdingstransition Limitedto for the year ended 31 December 2012 are intended to illustrate the IFRSs may be carried forward without adjustment to the amount previously capitalised presentation and disclosure requirements of International Financial Standards (IFRSs). They also on contain disclosures that at the Reporting transition date. As for borrowing costs incurred or afteradditional the date of transition to IFRSs that relate to qualifying assets in under construction at the date of transition, the a amendments are considered to be best practice, particularly where such disclosures are included illustrative examples provided within specific clarify that they should be accounted for in accordance with IAS 23 Borrowing Costs. Standard.
The amendments also state that a first-time adopter can choose to apply IAS 23 at a date earlier than the transition date. International GAAP Holdings Limited is assumed to have presented financial statements in accordance with IFRSs for a number of years. Therefore, it is not a first-time adopter of IFRSs. Readers should refer to IFRS 1 First-time Adoption of International Financial Reporting Standards for specific requirements regarding an entity's first IFRS financial statements, and to the IFRS 1 section of Deloitte's IFRS Compliance, IAS 1 The amendments to IAS 1 clarify that an entity is required to present a statement of financial Clarification of the requirements for comparative Presentation and applicable for period first-time Deloitte's IFRS only Presentation of Disclosure position as requirements at the beginning of the preceding (thirdadopters. statement of financial position) information Checklist for details of the particular disclosure Financial when from the retrospective an accounting policy, restatement or reclassification has a Compliance, Presentation and Disclosure Checklist can be downloaded Deloitte's application web site of www.iasplus.com.

The amendments clarify that borrowing costs capitalised under previous GAAP before the date of

Statements

material effect on the information in the third statement of financial position and that the

The model financial statements illustrate the impact of the application of the are amendments toaccompany IFRSs that are mandatorily for the related notes not required to the third statement of effective financial position. The amendments alsoillustrate clarify thatthe additional comparative information of is not necessary for annual period beginning on 1 January 2012. The model financial statements do not impact of the application new and revised periods beyond the minimum comparative financial statement requirements of IAS 1. However, IFRSs that were not yet mandatorily effective on 1 January 2012 (e.g. IFRS 9 Financial Instruments and the package of five standards on if additional comparative information is provided, the information should be presented in consolidation, joint arrangements and associates) except for the following amendments to IFRSs:
accordance with IFRSs, including related note disclosure of comparative information for any additional statements included beyond the minimum comparative financial statement requirements. Presenting additional comparative information voluntarily would not trigger a

•amendments to IAS 1 Presentation of Items of Other Comprehensive Income (effective 1 July 2012); and

requirement to provide a complete set ofIFRSs financial statements. •amendments to IAS 1 Presentation of Financial Statements as part of the Annual Improvements to 2009-201 ICyde, which provide guidance on when the statement of financial position as at the beginning of the earliest comparative period and the related notes are required to be disclosed (effective 1 January 2013). IAS 16 The amendments clarify that spare parts, stand-by equipment and servicing equipment should be In addition, the model financial statements have been presented without regard to local laws or regulations. Preparers of financial statements classified as property, plant and equipment when they meet the definition of property, plant and that the options selected under IFRSs do not conflict with such sources of regulation (e.g. the revaluation of assets is not equipment in IAS 16 and as inventory otherwise. permitted under certain reporting regimes - but these financial statements illustrate the presentation and disclosures required when an entity Tax effect of distribution to holders of equity IAS 32 Financial The amendments clarify that income tax on distributions to holders of an equity instrument and adopts the revaluation model under IAS 16 Property, Plant and Equipment). In addition, local laws or securities regulations may specify instruments Instruments: on transaction costs of an equity transaction should be accounted for in accordance with IAS 12. disclosures in addition to those required by IFRSs (e.g. in relation to directors' remuneration). Preparers of financial statements will Presentation consequently need to adapt the model financial statements to comply with such additional local requirements. The amendments that the which total assets and liabilities a particular reportable Interim financial reporting and segment information financial statements do not include separate financial statements for clarify the parent, may betotal required byfor local laws or Classification of servicing equipment

Property, Plant and will need to ensure Equipment

IAS 34 The model

Interim segment would be separately disclosed in interim financial reporting only when the amounts are for total assets and liabilities regulations, or may be prepared voluntarily. Where an entity presents separate financial statements that comply with IFRSs, the requirements Financial regularly provided to the chief operating decision maker and there has been a material change of IAS 27 Consolidated and Separate Financial Statements will apply. Separate statements of profit or loss and other comprehensive income, Reporting from the amounts disclosed in the last annual financial statements for that reportable segment.

financial position, changes in equity and cash flows for the parent will generally be required, together with supporting notes.

Suggested disclosures are cross-referenced to the underlying requirements in the texts of the relevant Standards and Interpretations. For the purposes of presenting the statements of profit or loss and other comprehensive income and cash flows, the alternatives allowed New Interpretation under IFRSs for those statements have been illustrated. Preparers should select the alternatives most appropriate to their circumstances and apply the chosen presentation method consistently. IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (Effective for annual periods Note that on in these model financial statements, we have frequently included line items for which a nil amount is shown, so as to illustrate items beginning or after 1 January 2013) that, although not applicable to International GAAP Holdings Limited, are commonly encountered in practice. This does not mean that we have IFRIC 20 applies to waste removal costs that are incurred in surface mining activity during the production phase of the mine ('production illustrated all possible disclosures. Nor should it be taken to mean that, in practice, entities are required to display line items for such 'nil' stripping costs'). Under the Interpretation, the costs from this waste removal activity ('stripping') which provide improved access to ore is amounts. recognised as a non-current asset ('stripping activity asset') when certain criteria are met, whereas the costs of normal ongoing operational Furthermore, changes to the model statements to illustrate the effect of the application of new and revised IFRSs for the first time are stripping activities are accounted for financial in accordance with IAS 2 Inventories. The stripping activity asset is accounted for as an addition to, or as underlined to highlight main changes this reporting period. an enhancement of, an the existing asset and for classified as tangible or intangible according to the nature of the existing asset of which it forms part. The Interpretation is effective for annual periods beginning on or after 1 January 2013. An entity should apply this Interpretation to production stripping costs incurred on or after the beginning of the earliest period presented, with specific transitional provisions.

Presentation as two statements.Content s Consolidated statement of profit or loss and other comprehensive income Alt 1 .Direct method of reporting cash flows from operating activities Alt 2 . with expenses analysed by function Alt 2 .Single statement presentation.Indirect method of reporting cash flows from operating activities Notes to the consolidated financial statements Auditor's report 12 14 16 18 20 21 23 134 . with expenses analysed by nature Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Alt 1 .

498 . and advance of the effective date (annual periods beginning on or after 1 January 2013).10(c) controlling Consolidated statement of financial profit or position loss and other comprehensive income hedging owners (f) employee currency on convertible December 2012 . (e) judgements and key sources of estimation uncertainty CU'000 CU'00 CU'000 31/12/12 31/12/11 CU’OOO CU’OOO CU'000 31/12/11 ultimate holding company is International Group Holdings Limited.99 Payment Employee expense 13 (10.478 illustrates the presentation of profit loss or and other comprehensive income in two separate consecutive comprehensive the ofor profit loss and income' and thebut 'income .460 in 64. IAS Presentation ofimmediately Financial Statements reflect Other than the aboveguidance mentioned changes. .058 23.005 25.99 Changes in inventories of finished goods and work in progress 7.IAS .268) (8.778 7. In accordance with the transitional provisions set out in the amendments 81 Other financial the assets payment transactions of Subsix Limited (note 44) IAS 1.729 87.617 Share buy-back Total costs assets 268.is renamed .85 Investment income 7 3. Alt 2 without (see following pages) illustrates the presentation of the presented a third statement of have financial position as at January 2011 the related notes except for the financial position Events after the reporting period 133 has been reclassification adjustments in the consolidated statement of profit or loss and other comprehensive income. In Alt 1 above.688 the current year. .0 Income tax expense in profit or loss income for the year recognised IAS 1. IAS 1. accompany the third statement of financial position.249 14.54(c) 33.479) (6.213 28. The amendments to IAS 1 clarify that an entity is required to present a third statement of a)will not beoutlined reclassified subsequently to profit or loss.201 Balance at 31 December 2011 (restated) 23.6 of financial 131. other and total notes comprehensive income.336 new terminology . Group has provided information for the-disclosures required by the amendments.99 Amendments Depreciation and amortisation expenses 13 (11.124 133 Approval of financial statements Presentation options for income tax relating to items of other comprehensive income 31.263.1) 5 83 profit or amendments 3of Other Comprehensive 83.198 preceding Decrease/(increase) trade and other receivables items that may beamount reclassified subsequently to profit or lossUnder when the specific conditions approach. .41-44 and IAS 23. for the year from continuing operations 13 127 18.10(f) that an entity present a statement of financial 14.135.1.(e) 5 Revenue 48 reserve reserve Assets reserve resen/e notes earnings of the parent interests (restated) (restated) CU'000 Total CU'000 IAS 1. and to their Related party transactions Policies.85 Others [describe] 18 Other intangible 75 29.310 9.Assets As such.reserve reserve International GAAP Holdings Limited (the Company) is a limited company incorporated Its parent and ended ended 4 Critical 46 CU'000 31/12/12 31/12/11 IAS accounting 1.55 Finance lease receivables 26 (6.164 (restated 7 Investment income 53 ) Continuing operations 23.85 Gain advance recognised on disposal ofdate interest in former associate 20 The amendments 581 of the effective (annual periods beginning on or after 1 July 2012).66.139 527 338 278 225 94.413) IAS 1. In accordance with the amendments to IAS 1.124 Disposal of subsidiary 129 Presentation reclassification adjustments In this model.6 31.603) (10.54(g) Inassets Inventories 31.54(0) Deferred tax assets 10 2. Changes in Accounting Estimates and Errors.66 1.120) (1.33.617 .has . 39 (39) to request the -Group to pay 23.7 Retirement benefit plans 101 statements or reclassifies items in its financial statements.provide . 23.124 at the banktax has the the balance. the year ended 31 December 2012of profit or loss Retained 1 General information Page Non IAS 1. 67A Diluted (cents per share) 83.138(a).272.66 Total comprehensive Diluted (cents per share) 115.706 IAS 1.to continuing _ _ _ 27. displayed immediately before the statement of In addition. 51 for the year ended 31 December 2012 .66.995 34 Issue of ordinary shares under employee share plan operations 314 -above illustrates .949 5.82(c) Share of profits of associates 20 1.1.85 relating Other gains and losses 8 647 1.228 57. (ea).for 8 _ Issue of 8 .193) (13.941 1.920 Adjustments for: Other comprehensive income for the year.058 8 Other gains and losses 54 Profit for the year IAS 1. 11 Discontinued operations Investments in associates 61 5.654 27.1. two statements non-controlling relating to-outstanding share-based IAS Other financial assets 22 8. 51(restated) Balance of at 1 January 2011 (as previously reported) Earnings per share 14CU'OOO CU'000 CU'000 Cash flows from operating activities (restated) CU'OOO CU'OOO CU'OOO CU'OOO CU’OOO CU’OOO CU’OOO CU'OOO 6 Segment information 48 IAS 1.150 12. 27.464 137. the items of other IAS 33.82(d) Income tax expense 10 (11.843 57 classified 33.54(j) the Assets as held for sale on or after 1 July 2012). Alt 2 (see Finance lease receivables 85 effective date classified (annual periods beginning amendments introduce IAS 1.150 1. Note that for where the two-statement approach is adopted (above and on the next page).270 IAS 1. the distinction is retained between items profit or Transfer to retained earnings IAS 1. 167.113 Notes 31/12/12 31/12/11 3 Significant accounting policies IAS 1.854 123.54(d) Additional 127 One-interests statement vs.052 215.54(n) to Current tax assets 125 60 Discontinued The amendments operations tocomparative IAS 1 retain the option to present profit10 or loss and comprehensive income in-either 81 IFRS 7.011) loss and income or in two separate but consecutive statements. Share Share General Properties 206 206 206 Trade and otherIssue receivables of ordinary shares for consulting services performed (note 28.528 amendments to IFRS 7 (see note 25.(e) CU'000 CU'000 23. plant and equipment 15 Standards 161. The 31/12/12 IAS l.1 OA Consolidated statement Cash flow Attributable to Equity-settled Foreign Option premium 51 (b).131 IAS 1.convertible notes _ _ _ following pages) the statement of comprehensive income and income statement.recognised (3) Whichever presentation approach is adopted.81 B(a)(i) Non-controlling interests 4.635) 198 188 (6.grouped into two loss Income tax relating transactions with owners Movements in working capital: 53.4 revised to provide on presentation when a statement of financial position as at the beginning of the Provisions 98 1 does not result in any impact on In profit or loss.417 IAS 1.853) Issued capital Buy-back of ordinary shares 87 IAS 1.850 IFRS Amendments to IFRS 7 Disclosures . financial Amendments to IAS tax 1 Presentation of Financial Statements relatinq to items that may be reclassified subsequently Trade and other payables Income 99 the Company and the amount attributable to non-controlling interests is presented as part of the separate position if: (as part of the Annual Improvements to IFRSs 2009-2011 Cycle issued in May 2012) From continuing operations Obligations under finance leases statement of profit or loss. me or in the note s (see Not e 29).643 .325 8. information in the b) third statement of financial position and that notes are not required to met.options it is assumed that the application of the amendments to IAS 12 Income Taxes has resulted in a 31.659) (85. to of profit orperiod loss.417 the other comprehensive income section: (a) items that will not be reclassified subsequently to profit or loss and (b) (123) (86) and items recognised in other comprehensive income.99 Consulting expense (3.418) (6.81 B(a)(ii) Owners statements of the Company with expenses analysed by nature.54(b) 2. IFRSs: a statement of financial position as at the beginning of the preceding period (third statement reclassification to present Share-based payments 121 28.005 25. If the trade receivables are not IAS 1.54(a) 2. Under the 19 20 21 22 23 24 IAS 8.763 30.66 Recognition 20 payments 85 27.4 470 . Convertible notes option to present items of other comprehensive income either before tax or net of tax.113) (11.60 The Non-current assets principal activities the Company and its subsidiaries (the Group) Adjustments (see note 2.058 1 Presentation of Items of Other Comprehensive Income in .824 Profit for year to continuing and discontinued operations Basic (cents per share) IAS 33.60 .28 25 26 27 28 29 30 31 32 33 34 35 36 37 IAS 8.55 Other assets 23 (6.54(h) Trade and other receivables 25 19.55 Goodwill 17 20.620 position as at the beginning of the1.other -in either a single .186 1.99 Raw materials and consumables used (84.527) .222 1.242 1.655 7. restatement or reclassification has athird material effect onfinancial the124 4. net of income tax Notes: The Group has applied the amendments towhen IAS23.54(e) 20 7.10(e).other comprehensive 834 _ 834 (5.1)of .or loss amendments to right IAS 1. plantThe andGroup equipment 68 has applied the amendments to IFRS 7 Disclosures . income.Application .763 (277) 436 (277) 316 However. the statement of profit or loss94 must be 1.6 87.(c) IAS 1.752 IAS 1.896 or its financial statements.Source Source SourceInternational International International International GAAP Holdings Holdings GAAP GAAP Holdings Holdings LimitedLimited Limited Source GAAP Limited Source Source International GAAP Holdings Limited International GAAP Holdings Limited Index to the notes to the consolidated financial statements International International GAAP GAAP Holdings Holdings Limited Limited Consolidated statement of changes in equity for revaluation IAS Notes to the consolidated financial IAS1.General information IAS 1.667 807 51 Balance at 1 January 2011 (restated) of new and revised Reporting (IFRSs) .555) Additional non-controlling arising and on the acquisition of Subsix _ as a carrying amount of the receivables has recognised cashstatement' received on transfer secured borrowing (see other comprehensive income' and the the 'income is the renamed the 'statement of profit or loss'.of single statement or inoption two separate but consecutive statements.1 effect on the comprehensive income should be classified by nature and grouped into those that.maturity. are met.422 .(c) Application of new and revised International 23 1.10.878) IAS 1.658 13.047 Total non-current assets 162.739 11.058 30.417 Issue of convertible non-participating preference shares 100 314 loss and other comprehensive income in one statement with expenses analysed by function.54(i) Cash and bank balances 46 Alt 1 23.242 141.13 capital premiumin A Land.1 OA.564 70. the Group discounted certain receivables a bank24 for cash.IAS -interests (6.819 807 Balance at 31 December 2012 requires in Note: IAS 1.303 32.51(d).771 338 of dividends _ benefits _ 338 338 IAS 1.134 2.2).968 17. presented. items of other comprehensive income has been modified to Other financial applied liabilities 97 has or part loss and other comprehensive which is required to1be presented following the As of the Annual Improvements to IFRSs 2009-2011 Cycle.Transfers of Financial Assets in the20. additional presentation options are available as Total equity and liabilities 268.654 2.IAS 1.316 not change the 171.1. The 12 22.(restated) 470 258 140 73.763 See the previous page for a discussion of the format ofspecific the statement of profit or loss and other comprehensive may be reclassified subsequently to profit orrelated loss when conditions are Business combinations 126 position are not reguired to be disclosed. for items of other comprehensive income.999 147.861 192.1 83. the related notes to the statement of financial position only when the retrospective application.926) 15 Property.66 (6. Its ultimate controlling party isCU'000 Mr. to IAS 1 Total comprehensive income 66 39 for the year (39) 66 66 IAS 1.721 300 IAS Property.66. the amendments to IAS 1 require items of other comprehensive income to be categories _ Retained earnings and dividends on to equity instruments 94 84 .709) . the analysis of 'profit for income the year' between the amount attributable preceding (third statement of comprehensive financial position) and the related should be presented inthe theowners Others (please specify) OtherIAS liabilities 99 33.the .523 131.351 IAS 1.The amendments to IAS 1 retain option to present profit or (6) (277) the .757 6.7 Investment property 16 124. 272.365 27.66.Transfers of Financial Assets IAS 1.the 'statement of profit or loss'. Basicbeen statement (cents per share) 132.(c) benefits for the year ended 31 December 2012 [Alt 2] 23 translation 51 (b).005 10 Income taxes operations 56 The following amendments to IFRSs have been applied in the current year and the amounts reported in IAS Other intangible assets 18have affected 9.580 amendments do 24.729 Note: The above illustrates the direct method of reporting cash flows from inco Furthermore.85 note 32).6 25.note 6.425 Reserves (net of income tax) comprehensive 90 . As the group not Payment of dividends .28 38 39 40 41 42 43 44 45 46 48 50 51 52 66 .635) IAS 1.55 — _ 34 5 5 213 Recognition of share-based a payments Amendments to IAS 1 Presentation of Items of Other Comprehensive Income Inventories 82 IAS 1. _ 17 Goodwill 72 IAS 1.964 1.7 12 Assets as held for sale 62 of share-based From continuing operations Basic (cents per share) to IFRSs affecting presentation and disclosure only IAS 1.904 other comprehensive income is required on the same basis . The objective under both approaches is to arrive at an (242) (158) (158) Non-controlling interests 94 17.083 1.statement (555) (17.479) IAS 1. disclosure requirements of IAS 8 as detailed below. the 'statement of 86 Attributable Amounts due from (to) customers underto: construction contracts Share issue costs (6) Totalincome' current assets 105. in accordance with other IAS 1 requires an entity that changes accounting policies retrospectively.654 28.653 Profit for the year Other expenses (10. 67A Diluted per share) Based on the amendments.402 7.783 .654 (6) statement' is renamed. net of income tax 1. the Group has applied the amendments to items IAS 12 Deferred Tax:statements Recovery of Underlying for Cash and cash In equivalent material retrospective restatement of certain in the financial (see note 2).982 introduce new terminology for trade the statement of to comprehensive income and income statement.transparency 23.other Disposal ofthe partial interest in not Subone Limited (note 19) Other assets 82 _ IAS Other assets 23 . 67A the changes.51(d). the 'statement of comprehensive income' is renamed the 'statement of profit Subsidiaries 77 IAS 1. the the first time.918 151.667 1. a 130 third comprehensive income.058 27. and hence the presentation ofincome. the application of the amendments to IAS IAS 33.005 current year.312 these financial statements.9 807 .748 of 20. or makes a retrospective restatement or Deferred revenue 120 information in the third statement of financial position.85 paid Profit before 30.845 advance . of financial position).498 operatingactivities.011) (17.82(ea) Profit for the year from discontinued 11 179 8. addition. makes a retrospective restatement of items in its financial The Group has applied Other comprehensive the amendments income: to IAS items 1 as that part may of the or may Annual not be Improvements reclassified to IFRSs 2009-2011 Cycle in IAS 33. retrospective restatement or the reclassification has a material74.unsettled . statements) of in profit or loss^ and other comprehensive income or in the notes.966 2.28 IAS 1.550 transferred the significant risks and rewards relatinq to these trade receivables.285 24.to IAS 1 Presentation Profit for the year 27. it continues to recognise the full and _ _ Investments in associates 78 (11.124 8 Accounting Note: Other The format above aggregates expenses according nature.51 (d).312 1. as required by 27.058 4. an entity is required to present a third statement 115. Under the amendments to IAS 1.the From 258 140 73.44M Earnings IAS Diluted (cents per share) 74.continued 51 (b).10(a).000 in 2.000 2.6 b)the retrospective application.479) .005) The amendments increase the disclosure requirements for transactions involving the transfer of financial assets in 16 Investment property 71 IAS 1.058 IAS Current assets order to greater around risk exposures financial assets are transferred.6 1.82(a) Revenue 5 140.425 263.005 .54(d) Other financial assets 22 9.0 of (centsstatements.608 2. 67A Basic (cents per share) 84.55 Amounts due from customers under construction contracts 27 240 230 697 Limited (note 44) Joint ventures 80 TheProfit relevant disclosures have been made regarding the transfer of these trade receivables on _ _ _ application _ IAS 1. Consolidated statement [Alt 1] continued statements for the year ended 31of 1.(c) at 31 DecemberFinancial 2012 Reporting Standards 2(b).55 Finance lease receivables 26 830 717 739 13 Profit-IAS for the year from continuing operations 63 1.International .446 19.478 The Group has applied of Items Income -in 70.589 Other comprehensive income for the year.058of 314 30.966 than disclosures of certain specified information as reguired by IAS 1. 100 a)it applies an accounting policy retrospectively.500 Amendments IFRSs affecting amounts reported in the financial statements 9 Finance costs 55 IAS 1. in accordance with paragraph of IAS an entity may present reclassification adjustments in the the current year.729 IAS 1.922 17.the 147. two-statement the Earnings per 14 separate period when it applies an accounting policy retrospectively or makes a retrospective restatement of items in Borrowings 95 593 544 317 186 to be allocated 592 110.060 23.000 27.82(b) Finance costs (4. or when it reclassifies items in its financial statements.840 IAS 132.'statement 834 .023) 14 per share 65 7. Income tax onstatement items of of profit forshare 'total comprehensive income'.the presentation . amendments have been 96 (257) (201) ends atand 'profit for the year'.are described in .000 27.124 4.81A(a) .1.667 807 annual addresses its registered office and principal place of business are disclosed in the introduction to the report. John Banks. which has resulted a material effect on the information in the consolidated statement of financial Operating lease arrangements 132 reclassification position as at 1 January 2011 (see below). and this 'profit for the year' is then theThe starting point for the statement of profit Fromloss continuing discontinued operations retrospectively.845 57. Year Year ended 2901/01/11 ended ended ended (c) IAS 24.763 84.113 Notes Year Year Notes IAS 1.118 57 20 85 1.3 141.635) 182 1. Financial instruments 104 Irrespective of whether the one-statement or the two-statement approach is followed.3 137.Financial 300 300 109.. the Group has therefore Contingent liabilities and contingent assets of 132 statement adjustments been presented in1 the notes.

that is attributable to changes in the 399 credit risk of that liability. 12 Fair Value Measurement' IFRS 11 replaces IAS 31 Interests in Joint IFRS Ventures. there is only one Consolidated Statements' 10. under IFRS investment properties as the Group is not subject to any income taxes on disposal of its investment properties. January 2014. 5.continued continued 2012 Amendments to IFRSs affecting the reported financial performance and/or financial position Amendments IAS 12 Deferred Tax: Recovery of Underlying Assets IFRS 9 Financialto Instruments as previously to IAS12 01/01/11 as reported Assets adjustments restated The Group has applied the amendments to IAS 12 Deferred Tax: Recovery of Underlying in the currentof year. rather than through sale.000 respectively and hence resulted subsequently reclassified to profit or loss. In May 2011. the Group's investments in redeemable Note: When an investment property was acquired as part of a business combination that took place in a prior year. Amendments to IAS IFRS 10.deferred taxjiabijjties. and (c) the ability to use its power over the investee to affect the Disclosure of Interests in Other Entities' IFRS amount of the investor's return Extensive guidance has been added in IFRS 10 to deal with complex scenarios. The change in accounting policy has resulted in the Group's income tax expense for the years ended 31399 mismatch in profit or loss. unless the recognition of the effects of In the current year. Under IFRS 11. joint arrangements. Changes in fair value attributable to a financial liability's credit risk are not crea^jneguity December 2012 and 31 December 2011 being reduced by CU9.Financial Non-monetary Contributions by Amendments to Disclosures .957 (390) 5.Offsetting Assets and Liabilities' IFRS 7 Venturers will be withdrawn upon the effective date of IFRS 11. revised in 2011) Offsetting Financial Assets and Financial Liabilities2 Amendments to IAS 32 Annual Improvements to IFRSs 2009-2011 Cycle except for the amendment to IAS transitional 11 In June 2012. All other debt investments and equity the amendments to IAS 12 has resulted in the Group not recognising any deferred taxes on changes in fair value of the investments are measured at their fair value at the end of subsequent accounting periods. entities. In addition. basis for Financial consolidation.Source Source Source InternationalGAAP GAAPHoldings HoldingsLimited Limited International International GAAP Holdings Limited As at 01/01/11 Amendment Notes to the consolidated financial statements for the year ended 31 December 2012 sNotes to the consolidated financial Notes to the consolidated financial continued statements for for the the year year ended ended 31 31 December December statements As at IAS 8. there types of Financial joint arrangements: jointly controlled entities.30 IAS The Group has not applied the following new and revised IFRSs that have been issued but are not yet Key requirements of these five Standards are described below. of subsequent reporting with in the fair value being recognised in profit orand loss). the entire amount of the change in the fair in profit for the years ended 31 December 2012 and 31 December 2011 being increased by CU9. the 166. 3 Effective for annual pprinrhbeginning nn nr after 1 lanuary 7D1 5 . entities may make an irrevocable election to present subsequent changes in the fair value of an equity Amendment Previously. issued in November 2009.Special Purpose Entities will be withdrawn upon the effective date of IFRS IFRSUnder IFRS 10. The disclosures reflect a cut-off date of 31 July 2012. IFRS 10 includes a new 10 definition of control that contains three elements: (a) power over an investee. 399 respectively. As a166. IFRS 10 replaces 27 Consolidated and Separate Financial Statements that deal with consolidated effective: IFRS 9 the parts of IAS Financial Instruments3 financial statements. notes that are currently classified as available-for-sale investments will have to be measured at fair value at the end the corresponding adjustments will also include an adjustment to goodwill.052 cash flows that are solely payments of principal and interest on the principal outstanding are generally measured directors have determined that the presumption set out in the amendments to IAS 12 is not rebutted. associates and disclosures was issued. IAS 27 (as revised in 2011) and IAS 28 (as revised in 2011). joint arrangements.567 unless the presumption is rebutted. The directors anticipate that the application of IFRS 9 in the future may have a significant impact on amounts 22New and IFRSs inGroup's issue but not yet assets effective reported inrevised respect of the financial and financial liabilities (e. Disclosure Interests in Other Entities: Guidance' equity method of accounting. The amendments to IAS 12 have been applied recognised in profit or loss. 12 with retrospectively. Key requirements of IFRS 9: Defemed^taxUabiJjtiesJincreas&^^decrease)! 390 of the 167. to variable Joint Arrangements' IFRS 11 returns from its involvement with the investee.000 that the amount in the fair value of the financial liability. SIC-13 JointlyFinancial Controlled Entities .000 as at 1 January 2011 the corresponding adjustment being recognised in retained earnings. that is. Therefore. under 31.662 390 167. no deferred taxes have been provided for changes in fair value of the Group's investment changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting properties. Previously. Similarly. IFRS 11 and IFRS 12 were issued to clarify certain guidance on Amendments to IFRSs (see note 2. itthat is not Note: Entities are requiredperiods. control. In contrast. IFRS are 11 three Consolidated Statements. However. the amendments to IFRS 10. Impact on net assets and equity as at 31 December 9. IFRS 12. joint arrangements.662 result of the application •all recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and amendments to IAS 12.24 IFRS IAS 8. 2011) IAS 27 (as revised Separate Financial Statements' IFRS 12 is a disclosure standard and is applicable to entities that have interests in subsidiaries. with only dividend income generally s to IAS entire carrying amounts of the properties were recovered through use. is presented in other comprehensive income. (b) exposure. SIC-12 Consolidation . to disclose in changes their financial statements the potential impact of new revised IFRSs practicable to provide a reasonable of the effect of IFRSbelow 9 until a detailed review has been completed. have IFRS 9 Decreaseby jn.000399 value of the financial liability designated as fair value through profit or loss was presented in profit or loss. associates and disclosures 12 before the financial statements are issued should also be considered and disclosed.052 The Group measures its investment properties using the fair value model. IFRS 9 was amended in October 2010 toare include requirements the classification and measurement of CU'OOO CU'OOO CU'OOO Investment Propertyand are for presumed to be recovered entirely through sale for the purposes of measuring deferred taxes financial liabilities derecognition. depending on the rights and obligations of the parties to the arrangements. the Group recognised deferred taxes on changes in fair value of investment properties on the basis that the 2012 investment (that is not held for trading) in other comprehensive income.609 94.28 2012 . the deferred tax liabilities been CU'OOO •with regard to the measurement of financial liabilities designated as at fair value through profit or loss.000 and CU90. whereas jointly controlled entities under IAS 31 can be accounted for using the equity IAS 19 (asof revised in Employee Benefits' method accounting or proportional consolidation. the disclosure inassociates 2011) IAS and/or 28 (as unconsolidated structured Investments in Associates and Joint Ventures' requirements in IFRS 12 are more extensive than those in the current standards. IFRS 3. The application of Total effect on equity Jincrease/(decrease)J at amortised cost at the end of subsequent accounting periods. Joint Arrangements and jointly controlled assets andIFRS jointly jointof ventures under IFRS 11 areTransition required to be accounted for using the and 12controlled operations. introduced new requirements for the classification and measurement financial Under the amendments.999 the Group's investment properties are held under a business model whose objective is to consume 390 substantially all of held within a business model whose objective is to collect the contractual cash flows. IFRS 9. debt investments that are 94.000 and CU90. investment properties that measured using thefor fair value model in accordance with IAS 40 assets. and that have contractual Retained earnings [increase/(decrease)] the economic benefits embodied in the investment properties over time.net assets decreased as at of 31change December 2011. requires CU390. Specifically. the directors reviewed the Group's investment property portfolios and concluded that none of Measurement to be subsequently measured at amortised cost or fair value. joint arrangements are classified as Amendments to IFRS 9 and IFRS 7 Mandatory Effective Date of IFRS 9 and Transition Disclosures3 joint operations or joint ventures. In general. or rights.1) the application of these IFRSs for the first time. In addition. laease in. have been issued but are not estimate yet effective.g. In addition. The potential impact of of amendments the application any new and revised IFRSs issued by the IASB after 31 July 2012 but Impact of the application toof IAS New and revised Standards on consolidation. a package of five Standards on consolidation. IFRS 11 deals with how a joint arrangement of which two or more 13 parties have joint control should be classified. under IAS 39. IFRIC 20 Stripping Costs in the 1 Effective for 2 Effective for annual periods beginning on or after 1 annual periods beginning on or after 1 January 2013. resulting in the Group's deferred tax liabilities being decreased by CU300. including IFRS 10. IFRS 11.

the net assets as well as income and expenses of C Plus Limited will be presented as separate line items in the consolidated statement of financial position and in the consolidated statement of profit or loss and other comprehensive income respectively. IFRS 13 is effective for annual periods beginning on or after 1 January 2013. Taking into account the new definition of control and the additional guidance on control set out in IFRS 10. with earlier application permitted provided all of these standards are applied at the same time. the application of IFRS 10 may result in C Plus Limited being treated as the Group's subsidiary. The directors anticipate that the application of these five standards will have a significant impact on amounts reported in the consolidated financial statements. the amendments clarify the meaning of 'currently has a legally enforceable right of set-off' and 'simultaneous realisation and settlement'. . If C Plus Limited is consolidated as the Group's subsidiary. In general. The Standard defines fair value. resulting in the aggregation of the Group's proportionate share of JV Electronics Limited's net assets and items of profit or loss and other comprehensive income into a single line item which will be presented in the consolidated statement of financial position and in the consolidated statement of profit or loss and other comprehensive income as 'investment in joint venture’ and 'share of profits (loss) of joint venture’ respectively. it applies to both financial instrument items and non-financial instrument items for which other IFRSs require or permit fair value measurements and disclosures about fair value measurements. except in specified circumstances. The amendments to IFRS 7 are effective for annual periods beginning on or after 1 January 2013 and interim periods within those annual periods.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . with retrospective application required. The application of IFRS 11 will change the classification and subsequent accounting of the Group's investment in JV Electronics Limited. Specifically. The amendments to IFRS 7 require entities to disclose information about rights of offset and related arrangements (such as collateral posting requirements) for financial instruments under an enforceable master netting agreement or similar arrangement. rather than being presented as one line item in the Group's consolidated financial statements. quantitative and qualitative disclosures based on the three-level fair value hierarchy currently required for financial instruments only under IFRS 7 Financial Instruments: Disclosures will be extended by IFRS 13 to cover all assets and liabilities within its scope. with earlier application permitted. which is classified as a jointly controlled entity under IAS 31 and has been accounted for using the proportionate consolidation method. A detailed review will be performed by the directors to quantify the impact on the application of IFRS 10. The directors anticipate that the application of these amendments to IAS 32 and IFRS 7 may result in more disclosures being made with regard to offsetting financial assets and financial liabilities in the future. For example.continued These five standards together with the amendments regarding the transition guidance are effective for annual periods beginning on or after 1 January 2013. the disclosure requirements in IFRS 13 are more extensive than those required in the current standards. Amendments to IFRS 7 and IAS 32 Offsetting Financial Assets and Financial Liabilities and the related disclosures The amendments to IAS 32 clarify existing application issues relatinq to the offset of financial assets and financial liabilities requirements. the Group does not have any other interests in jointly controlled entities. IFRS 13 Fair Value Measurement IFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. The scope of IFRS 13 is broad. JV Electronics Limited will be classified as a joint venture and accounted for using the equity method. the amendments to IAS 32 are not effective until annual periods beginning on or after 1 January 2014. establishes a framework for measuring fair value. However. the application of IFRS 10 may affect the accounting for the Group's 45% ownership interest in C Plus Limited that is currently classified as the Group's associate. The disclosures should be provided retrospectively for all comparative periods. and requires disclosures about fair value measurements. For example. The directors anticipate that the application of the new Standard may affect certain amounts reported in the financial statements and result in more extensive disclosures in the financial statements. Under IFRS 11. Besides the investment in JV Electronics Limited.

The amendments are effective for annual periods beginning on or after 1 January 2013. The most significant change relates to the accounting for changes in defined benefit obligations and plan assets. Amendments to IFRSs include: •amendments to IAS 16 Property. b) immediate recognition of past service costs in profit or loss and an increase in the net pension deficit and c) reversal of the difference between the gain arising from the expected rate of return on pension plan assets and the discount rate through other comprehensive income.000 (1 January 2012. The amendments require the recognition of changes in defined benefit obligations and in fair value of plan assets when they occur.2011 Cycle include a number of amendments to various IFRSs. The stripping activity asset is accounted for as an addition to. The amendments require all actuarial gains and losses to be recognised immediately through other comprehensive income in order for the net pension asset or liability recognised in the consolidated statement of financial position to reflect the full value of the plan deficit or surplus. whereas the costs of normal on-qoinq operational stripping activities are accounted for in accordance with IAS 2 Inventories. The directors anticipate that IFRIC 20 will have no effect to the Group's financial statements as the Group does not engage in such activities. the costs from this waste removal activity (stripping) which provide improved access to ore is recognised as a noncurrent asset (stripping activity asset) when certain criteria are met. an existing asset and classified as tangible or intangible according to the nature of the existing asset of which it forms part. if any.000 and the other comprehensive income after income tax for the said year would be increased by CU 564. and hence eliminate the 'corridor approach' permitted under the previous version of IAS 19 and accelerate the recognition of past service costs.] . Annual Improvements to IFRSs 2009 .2011 Cycle issued in May 2012 The Annual Improvements to IFRSs 2009 . plant and equipment when they meet the definition of property. Specific transitional provisions are provided to entities that apply IFRIC 20 for the first time. Plant and Equipment. and amendments to IAS 32 Financial Instruments: Presentation. IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine applies to waste removal costs that are incurred in surface mining activity during the production phase of the mine (production stripping costs). including their income tax effects: a) full recognition of actuarial gains through other comprehensive income and decrease in the net pension deficit. or as an enhancement of. stand-by equipment and servicing equipment should be classified as property. plant and equipment in IAS 16 and as inventory otherwise. Under the Interpretation. the interest cost and expected return on plan assets used in the previous version of IAS 19 are replaced with a 'netinterest' amount.000) with the corresponding adjustments being recognised in the retirement benefit obligation and income tax liability.continued IAS 19 Employee Benefits The amendments to IAS 19 change the accounting for defined benefit plans and termination benefits. The amendments to IAS 19 require retrospective application. Based on the directors' preliminary assessment. decrease in retained earnings of CU163. The directors anticipate that the amendments to IAS 32 will have no effect on the Group's consolidated financial statements as the Group has already adopted this treatment. [Describe the potential impact of the application of other new and revised IFRSs. the profit after income tax for the year ended 31 December 2012 would be reduced by CU 308. Furthermore. which is calculated by applying the discount rate to the net defined benefit liability or asset. IFRIC 20 must be applied to production stripping costs incurred on or after the beginning of the earliest period presented. Amendments to IAS 32 The amendments to IAS 32 clarify that income tax relating to distributions to holders of an equity instrument and to transaction costs of an equity transaction should be accounted for in accordance with IAS 12 Income Taxes. This net effect reflects a number of adjustments. IFRIC 20 is effective for annual periods beginning on or after 1 January 2013. Amendments to IAS 16 The amendments to IAS 16 clarify that spare parts. when the Group applies the amendments to IAS 19 for the first time for the year ending 31 December 2013. The directors do not anticipate that the amendments to IAS 16 will have a significant effect on the Group's consolidated financial statements. However.Source InternationalGAAPHoldings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 .

Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.31Changes in the Group's ownership interests in existing subsidiaries Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. balances. accounting policies have been provided for some immaterial items.16 IAS 1.17(b) IAS The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards. as explained in the accounting policies below. All intra-group transactions. and liabilities of the subsidiary and any non-controlling interests. although this is not required under IFRSs. the amounts previously recognised in other comprehensive income and accumulated in equity are accounted for as if the Group had directly disposed of the relevant assets (i.112(a). Entities are required to disclose in the summary of significant accounting policies the measurement basis (or bases) used in preparing the financial statements and the other accounting policies used that are relevant to an understanding of the financial statements. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company. Disclosure of particular accounting policies is especially useful to users when those policies are selected from alternatives allowed in Standards and Interpretations. . 31Statement of compliance IAS 1. In deciding whether a particular accounting policy should be disclosed. Historical cost is generally based on the fair value of the consideration given in exchange for assets. When assets of the subsidiary are carried at revalued amounts or fair values and the related cumulative gain or loss has been recognised in other comprehensive income and accumulated in equity. in these model financial statements. a gain or loss is recognised in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill). 3. When necessary. but that is selected and applied in accordance with IAS 8 Accounting Policies. reclassified to profit or loss or transferred directly to retained earnings as specified by applicable IFRSs). as appropriate. adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. An accounting policy may be significant because of the nature of the entity's operations even if amounts for the current and prior periods are not material. 32Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for certain properties and financial instruments that are measured at revalued amounts or fair values. Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated disposal. The principal accounting policies are set out below.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . Each entity considers the nature of its operations and the policies that users of its financial statements would expect to be disclosed for that type of entity.e. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. The carrying amounts of the Group's interests and the noncontrolling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. other events and conditions are reflected in the reported financial performance and financial position.Significant accounting policies Note: The following are examples of the types of accounting policies that might be disclosed in this entity's financial statements. 33Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including special purpose entities) controlled by the Company (its subsidiaries). 11 IAS 1.continued 3. income and expenses are eliminated in full on consolidation. It is also appropriate to disclose each significant accounting policy that is not specifically required by IFRSs. Changes in Accounting Estimates and Errors. When the Group loses control of a subsidiary. For completeness. management considers whether disclosure would assist users in understanding how transactions.

is recognised in profit or loss. the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any). if known. the Group's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date (i. when applicable. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively. and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . except that: deferred tax assets or liabilities. as appropriate. Goodwill is measured as the excess of the sum of the consideration transferred. If. The consideration transferred in a business combination is measured at fair value. to reflect new information obtained about facts and circumstances that existed at the acquisition date that. after reassessment. When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement. . Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39. When a business combination is achieved in stages.16. the date when the Group obtains control) and the resulting gain or loss. Contingent Liabilities and Contingent Assets. 34Business combinations Acquisitions of businesses are accounted for using the acquisition method. the amount of any non-controlling interests in the acquiree. would have affected the amounts recognised at that date. or IAS 37 Provisions. liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date (see note 3. when applicable. the excess is recognised immediately in profit or loss as a bargain purchase gain. or additional assets or liabilities are recognised. with the corresponding gain or loss being recognised in profit or loss. At the acquisition date. The choice of measurement basis is made on a transaction-by-transaction basis. the identifiable assets acquired and the liabilities assumed are recognised at their fair value. the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred. liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Other types of non-controlling interests are measured at fair value or.e.2). the cost on initial recognition of an investment in an associate or a jointly controlled entity. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of. which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group. with corresponding adjustments against goodwill. Those provisional amounts are adjusted during the measurement period (see above). if any. Acquisition-related costs are generally recognised in profit or loss as incurred. and •assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard. the Group reports provisional amounts for the items for which the accounting is incomplete. and assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with IAS 12 and IAS 19 respectively. the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified.continued The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39 or. on the basis specified in another IFRS. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets.

When necessary. Therefore. goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination. the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any reversal of that impairment loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . 36Investments in associates An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. the Group accounts for all amounts previously recognised in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Any excess of the Group's share of the net fair value of the identifiable assets. in which case it is accounted for in accordance with IFRS 5. If the recoverable amount of the cash-generating unit is less than its carrying amount. When the Group's share of losses of an associate exceeds the Group's interest in that associate (which includes any long-term interests that. after reassessment. Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets. Any impairment loss for goodwill is recognised directly in profit or loss. the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when it loses significant influence over that associate. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. is recognised immediately in profit or loss. any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset in accordance with IAS 39. or more frequently when there is an indication that the unit may be impaired. the attributable amount of goodwill is included in the determination of the profit or loss on disposal. profits and losses resulting from the transactions with the associate are recognised in the Group' consolidated financial statements only to the extent of interests in the associate that are not related to the Group. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting.continued 35Goodwill Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business (see note 3. an investment in an associate is initially recognised in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group's share of the profit or loss and other comprehensive income of the associate. in substance. The Group's policy for goodwill arising on the acquisition of an associate is described at note 3. the Group discontinues recognising its share of further losses. . On disposal of the relevant cash-generating unit. For the purposes of impairment testing. if any. Upon disposal of an associate that results in the Group losing significant influence over that associate. except when the investment is classified as held for sale. Any impairment loss recognised forms part of the carrying amount of the investment. The requirements of IAS 39 are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group's investment in an associate. When a group entity transacts with its associate. liabilities and contingent liabilities of an associate recognised at the date of acquisition is recognised as goodwill. A cash-generating unit to which goodwill has been allocated is tested for impairment annually. the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Under the equity method. An impairment loss recognised for goodwill is not reversed in subsequent periods. if a gain or loss previously recognised in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities. In addition. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.4 above) less accumulated impairment losses. liabilities and contingent liabilities over the cost of acquisition.6 below. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. form part of the Group's net investment in the associate). which is included within the carrying amount of the investment.

When the Group is committed to a sale plan involving loss of control of a subsidiary. liabilities.4 and 3. The Group's share of the assets. and •the costs incurred or to be incurred in respect of the transaction can be measured reliably. This condition is regarded as met only when the sale is highly probable and the non-current asset (or disposal group) is available for immediate sale in its present condition. 38Non-current assets held for sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . the Group's share of jointly controlled assets and any liabilities incurred jointly with other venturers are recognised in the financial statements of the relevant entity and classified according to their nature. Management must be committed to the sale. and its share of joint venture expenses. •the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. are recognised when it is probable that the economic benefits associated with the transactions will flow to/from the Group and their amount can be measured reliably. income and expenses of jointly controlled entities is combined with the equivalent items in the consolidated financial statements on a line-by-line basis. which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Revenue is reduced for estimated customer returns.91Sale of goods Revenue from the sale of goods is recognised when the goods are delivered and titles have passed. . Liabilities and expenses incurred directly in respect of interests in jointly controlled assets are accounted for on an accrual basis.35(a) 39Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. •the amount of revenue can be measured reliably.5 above). except when the investment is classified as held for sale. When a group entity transacts with its jointly controlled entity. 3. at which time all the following conditions are satisfied: •the Group has transferred to the buyer the significant risks and rewards of ownership of the goods. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.57 IAS 18. Any goodwill arising on the acquisition of the Group's interest in a jointly controlled entity is accounted for in accordance with the Group's accounting policy for goodwill arising in a business combination (see notes 3. When a group entity undertakes its activities under joint venture arrangements directly. Joint venture arrangements that involve the establishment of a separate entity in which each venturer has an interest are referred to as jointly controlled entities. profits and losses resulting from the transactions with the jointly controlled entity are recognised in the Group' consolidated financial statements only to the extent of interests in the jointly controlled entity that are not related to the Group. in which case it is accounted for in accordance with IFRS 5. regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. when the strategic financial and operating policy decisions relating to the activities of the joint venture require the unanimous consent of the parties sharing control). IAS 31. it is probable that the economic benefits associated with the transaction will flow to the Group. Income from the sale or use of the Group's share of the output of jointly controlled assets. all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met.continued 37Interests in joint ventures A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control (i. The Group reports its interests in jointly controlled entities using proportionate consolidation.e. rebates and other similar allowances.

Royalties determined on a time basis are recognised on a straight-line basis over the period of the agreement. which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition. except where this would not be representative of the stage of completion.but is deferred and recognised as revenue when the award credits are redeemed and the Group's obligations have been fulfilled. Royalty arrangements that are based on production. Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . and revenue from time and material contracts is recognised at the contractual rates as labour hours and direct expenses are incurred. Interest income is accrued on a time basis. as advances received. 3. 3. measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable.92Rendering of sen/ices Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract.39(b). The consideration allocated to the award credits is measured by reference to their fair value .11. determined as the proportion of the total time expected to install that has elapsed at the end of the reporting period. are accounted for as multiple element revenue transactions and the fair value of the consideration received or receivable is allocated between the goods supplied and the award credits granted.95Rental income The Group's policy for recognition of revenue from operating leases is described in note 3. servicing fees included in the price of products sold are recognised by reference to the proportion of the total cost of providing the servicing for the product sold. IAS 11. 3. 3.1 below.10 below. For contracts where progress billings exceed contract costs incurred to date plus recognised profits less recognised losses. When contract costs incurred to date plus recognised profits less recognised losses exceed progress billings. Such consideration is not recognised as revenue at the time of the initial sale transaction . the surplus is shown as amounts due from customers for contract work. The Group's policy for recognition of revenue from construction contracts is described in note 3. (c) 310Construction contracts When the outcome of a construction contract can be estimated reliably. Variations in contract work. Contract costs are recognised as expenses in the period in which they are incurred. sales and other measures are recognised by reference to the underlying arrangement. by reference to the principal outstanding and at the effective interest rate applicable. The stage of completion of the contract is determined as follows: installation fees are recognised by reference to the stage of completion of the installation. as a liability.continued Sales of goods that result in award credits for customers.94Dividend and interest income Dividend income from investments is recognised when the shareholder's right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably).the amount for which the award credits could be sold separately. Amounts billed for work performed but not yet paid by the customer are included in the consolidated statement of financial position under trade and other receivables. claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. under the Group's Maxi-Points Scheme. the surplus is shown as the amounts due to customers for contract work.93Royalties Royalty revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement (provided that it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably). Amounts received before the related work is performed are included in the consolidated statement of financial position. When it is probable that total contract costs will exceed total contract revenue. . When the outcome of a construction contract cannot be estimated reliably. the expected loss is recognised as an expense immediately. revenue and costs are recognised by reference to the stage of completion of the contract activity at the end of the reporting period.

unless exchange rates fluctuate significantly during that period. except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. unless they are directly attributable to qualifying assets. exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note 3. are recognised in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate). the assets and liabilities of the Group's foreign operations are translated into Currency Units using exchange rates prevailing at the end of each reporting period. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases.28 below for hedging accounting policies). and exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation). Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. in which case the exchange rates at the dates of the transactions are used.112 The Group as lessee Assets held under finance leases are initially recognised as assets of the Group at their fair value at the inception of the lease or. Contingent rentals are recognised as expenses in the periods in which they are incurred.111 The Group as lessor Amounts due from lessees under finance leases are recognised as receivables at the amount of the Group's net investment in the leases.13 below).continued 311Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. in which case they are capitalised in accordance with the Group's general policy on borrowing costs (see note 3. 3. The corresponding liability to the lessor is included in the consolidated statement of financial position as a finance lease obligation. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for: exchange differences on foreign currency borrowings relating to assets under construction for future productive use. if any. except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. 312Foreign currencies In preparing the financial statements of each individual group entity. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings. For the purposes of presenting consolidated financial statements. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. Exchange differences arising. at the present value of the minimum lease payments. Income and expense items are translated at the average exchange rates for the period. such incentives are recognised as a liability. monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. which are recognised initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. if lower. At the end of each reporting period. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group's net investment outstanding in respect of the leases. . Finance expenses are recognised immediately in profit or loss. All other leases are classified as operating leases. 3. transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognised in profit or loss. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.e. Exchange differences arising are recognised in other comprehensive income and accumulated in equity. The retirement benefit obligation recognised in the consolidated statement of financial position represents the present value of the defined benefit obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past service cost. the cost of providing benefits is determined using the Projected Unit Credit Method. For all other partial disposals (i. all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.39(a) 314Government grants Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received. For defined benefit retirement benefit plans. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. in relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary. Any asset resulting from this calculation is limited to unrecognised actuarial losses and past service cost. 313Borrowing costs Borrowing costs directly attributable to the acquisition. 315Retirement benefit costs IAS 19. a disposal of the Group's entire interest in a foreign operation. The benefit of a government loan at a below-market rate of interest is treated as a government grant. plus the present value of available refunds and reductions in future contributions to the plan. Specifically.continued On the disposal of a foreign operation (i. and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. Past service cost is recognised immediately to the extent that the benefits are already vested. government grants whose primary condition is that the Group should purchase. IAS 20. . Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognised in profit or loss in the period in which they become receivable. partial disposals of associates or jointly controlled entities that do not result in the Group losing significant influence or joint control). and as reduced by the fair value of plan assets.120A(a) Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions. In addition. construct or otherwise acquire non-current assets are recognised as deferred revenue in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. Actuarial gains and losses that exceed 10% of the greater of the present value of the Group's defined benefit obligation and the fair value of plan assets as at the end of the prior year are amortised over the expected average remaining working lives of the participating employees. or a disposal involving loss of control over a subsidiary that includes a foreign operation. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate. construction or production of qualifying assets. or a disposal involving loss of significant influence over an associate that includes a foreign operation). which are assets that necessarily take a substantial period of time to get ready for their intended use or sale. with actuarial valuations being carried out at the end of each reporting period.e. are added to the cost of those assets. until such time as the assets are substantially ready for their intended use or sale. the proportionate share of the accumulated exchange differences is reclassified to profit or loss. measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates. Goodwill and fair value adjustments on identifiable assets and liabilities acquired arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . a disposal involving loss of joint control over a jointly controlled entity that includes a foreign operation.

. based on the Group's estimate of equity instruments that will eventually vest. in which case they are measured at the fair value of the equity instruments granted. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in note 42. If the sharebased payment transactions have vested by the acquisition date. if any. At the end of each reporting period. measured at the date the entity obtains the goods or the counterparty renders the service. with a corresponding increase in equity.161Share-based payment transactions of the Company Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. For cash-settled share-based payments. All of the market-based measure of the replacement awards is recognised as remuneration cost for post-combination service. At the end of each reporting period until the liability is settled. the Group revises its estimate of the number of equity instruments expected to vest. if the share-based payment transactions have not vested by the acquisition date. both the acquiree awards and the replacement awards are measured in accordance with IFRS 2 ("market-based measure") at the acquisition date. The balance is recognised as remuneration cost for post-combination service. with a corresponding adjustment to the equitysettled employee benefits reserve.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . the market-based measure of the unvested share-based payment transactions is allocated to the non-controlling interest in the acquiree based on the ratio of the portion of the vesting period completed to the greater of the total vesting period or the original vesting period of the share-based payment transaction. The portion of the replacement awards that is included in measuring the consideration transferred in a business combination equals the market-based measure of the acquiree awards multiplied by the ratio of the portion of the vesting period completed to the greater of the total vesting period or the original vesting period of the acquiree award. the replacement awards are measured at their market-based measure in accordance with IFRS 2. is recognised in profit or loss such that the cumulative expense reflects the revised estimate. measured initially at the fair value of the liability. when the outstanding equity-settled share-based payment transactions held by the employees of an acquiree are not exchanged by the Group for its share-based payment transactions. except where that fair value cannot be estimated reliably. However. However. the fair value of the liability is remeasured.162Share-based payment transactions of the acquiree in a business combination When the share-based payment awards held by the employees of an acquiree (acquiree awards) are replaced by the Group's share-based payment awards (replacement awards). The impact of the revision of the original estimates. when the acquiree awards expire as a consequence of a business combination and the Group replaces those awards when it does not have an obligation to do so. 317Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. they are included as part of the non-controlling interest in the acquiree. At the acquisition date.171Current tax The tax currently payable is based on taxable profit for the year. 3. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. a liability is recognised for the goods or services acquired. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received. 3. with any changes in fair value recognised in profit or loss for the year. the acquiree share-based payment transactions are measured at their market-based measure at the acquisition date. The excess of the marketbased measure of the replacement awards over the market-based measure of the acquiree awards included in measuring the consideration transferred is recognised as remuneration cost for post-combination service.continued 316Share-based payment arrangements 3. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period. and at the date of settlement. Taxable profit differs from 'profit before tax' as reported in the consolidated [statement of profit or loss and other comprehensive income/statement of profit or loss] because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

For the purposes of measuring deferred tax liabilities and deferred tax assets for investment properties that are measured using the fair value model. the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. to recover or settle the carrying amount of its assets and liabilities. plant and equipment Land and buildings held for use in the production or supply of goods or services. less any subsequent accumulated depreciation and subsequent accumulated impairment losses.continued 3. supply or administrative purposes are carried at cost. rather than through sale. in which case the increase is credited to profit or loss to the extent of the decrease previously expensed. Depreciation of these assets. Therefore.173Current and deferred tax for the year Current and deferred tax are recognised in profit or loss. Deferred tax liabilities are generally recognised for all taxable temporary differences. except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. held in the properties revaluation reserve relating to a previous revaluation of that asset. the Group has not recognised any deferred taxes on changes in fair value of the investment properties as the Group is not subject to any income taxes on disposal of its investment properties. if any. The directors reviewed the Group's investment property portfolios and concluded that none of the Group's investment properties are held under a business model whose objective is to consume substantially all of the economic benefits embodied in the investment properties over time. less any recognised impairment loss. Revaluations are performed with sufficient regularity such that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period. the tax effect is included in the accounting for the business combination.18Property. plant and equipment when completed and ready for intended use. except to the extent that it reverses a revaluation decrease for the same asset previously recognised in profit or loss.172Deferred tax Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. unless the presumption is rebutted. 3. 3. Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . in which case. Cost includes professional fees and. Where current tax or deferred tax arises from the initial accounting for a business combination. As a result. being the fair value at the date of revaluation. the directors have determined that the 'sale' presumption set out in the amendments to IAS 12 is not rebutted. and interests in joint ventures. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. IAS 16.73(a). based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Such properties are classified to the appropriate categories of property. commences when the assets are ready for their intended use. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. rather than through sale. The presumption is rebutted when the investment property is depreciable and is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time. on the same basis as other property assets. at the end of the reporting period. Any revaluation increase arising on the revaluation of such land and buildings is recognised in other comprehensive income and accumulated in equity. (b) . borrowing costs capitalised in accordance with the Group's accounting policy. for qualifying assets. except when they relate to items that are recognised in other comprehensive income or directly in equity. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. the carrying amounts of such properties are presumed to be recovered entirely through sale. or for administrative purposes. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects. A decrease in the carrying amount arising on the revaluation of such land and buildings is recognised in profit or loss to the extent that it exceeds the balance. Properties in the course of construction for production. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised. are stated in the consolidated statement of financial position at their revalued amounts.

with the effect of any changes in estimate being accounted for on a prospective basis.20Intangible assets 3. residual values and depreciation method are reviewed at the end of each reporting period.continued Depreciation on revalued buildings is recognised in profit or loss. The estimated useful lives.2Internallv-aenerated intangible assets . An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Depreciation is recognised so as to write off the cost or valuation of assets (other than freehold land and properties under construction) less their residual values over their useful lives. Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. On the subsequent sale or retirement of a revalued property. when there is no reasonable certainty that ownership will be obtained by the end of the lease term. Investment properties are measured initially at cost. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised. Subsequent to initial recognition. 3.19Investment property Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if. the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to retained earnings. Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets.research and development expenditure Expenditure on research activities is recognised as an expense in the period in which it is incurred. and only if. Where no internally-generated intangible asset can be recognised.20.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . The estimated useful life and amortisation method are reviewed at the end of each reporting period.20. all of the following have been demonstrated: •the technical feasibility of completing the intangible asset so that it will be available for use or sale. assets are depreciated over the shorter of the lease term and their useful lives. . how the intangible asset will generate probable future economic benefits. IAS 40. development expenditure is recognised in profit or loss in the period in which it is incurred.1Intangible assets acquired separately IAS 38. •the intention to complete the intangible asset and use or sell it. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise. plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss. However. •the availability of adequate technical. Freehold land is not depreciated. An item of property. using the straight-line method. with the effect of any changes in estimate accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. including transaction costs. and •the ability to measure reliably the expenditure attributable to the intangible asset during its development. Any gain or loss arising on the disposal or retirement of an item of property. The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above.118(b) Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. •the ability to use or sell the intangible asset. financial and other resources to complete the development and to use or sell the intangible asset. investment properties are measured at fair value.75(a) 3. 3.

the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.118(b) Subsequent to initial recognition. If any such indication exists.4Derecognition of intangible assets An intangible asset is derecognised on disposal. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period. . When a reasonable and consistent basis of allocation can be identified. IAS 38. unless the relevant asset is carried at a revalued amount. and a reliable estimate can be made of the amount of the obligation.3Intangible assets acquired in a business combination Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair value at the acquisition date (which is regarded as their cost). taking into account the risks and uncertainties surrounding the obligation. 3. internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses. Recoverable amount is the higher of fair value less costs to sell and value in use.18 above). and whenever there is an indication that the asset may be impaired.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 continued Subsequent to initial recognition.22Inventories Inventories are stated at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. A reversal of an impairment loss is recognised immediately in profit or loss. corporate assets are also allocated to individual cash-generating units. intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses. Gains or losses arising from derecognition of an intangible asset. An impairment loss is recognised immediately in profit or loss. Costs of inventories are determined on a first-infirst-out basis. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually. unless the relevant asset is carried at a revalued amount.21Impairment of tangible and intangible assets other than goodwill At the end of each reporting period. on the same basis as intangible assets that are acquired separately. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount. 3.20. its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When it is not possible to estimate the recoverable amount of an individual asset. When an impairment loss subsequently reverses. in which case the impairment loss is treated as a revaluation decrease (see note 3. or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. 3. 3. When a provision is measured using the cash flows estimated to settle the present obligation.23Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event. it is probable that the Group will be required to settle the obligation. the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount. are recognised in profit or loss when the asset is derecognised.20. In assessing value in use. the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.118(b) IAS 38. measured as the difference between the net disposal proceeds and the carrying amount of the asset.18 above). in which case the reversal of the impairment loss is treated as a revaluation increase (see note 3. the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. or when no future economic benefits are expected from use or disposal. the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). on the same basis as intangible assets that are acquired separately. but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. IAS 2.36(a) 3.

The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate. IFRS 7. to the net carrying amount on initial recognition. All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Financial assets and financial liabilities are initially measured at fair value.B5(e) Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL.4Contingent liabilities acquired in a business combination Contingent liabilities acquired in a business combination are initially measured at fair value at the acquisition date. 3. 3.3Warranties Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognised at the date of sale of the relevant products.25Financial assets Financial assets are classified into the following specified categories: financial assets 'at fair value through profit or loss' (FVTPL). or. IFRS 7.23.23. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.2Restructurings A restructuring provision is recognised when the Group has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. on initial recognition.21 3.24Financial instruments Financial assets and financial liabilities are recognised when a group entity becomes a party to the contractual provisions of the instruments. 3.1Onerous contracts Present obligations arising under onerous contracts are recognised and measured as provisions. 'available-for-sale' (AFS) financial assets and 'loans and receivables'. .23. a shorter period. such contingent liabilities are measured at the higher of the amount that would be recognised in accordance with IAS 37 and the amount initially recognised less cumulative amortisation recognised in accordance with IAS 18 Revenue.1Effective interest method The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. transaction costs and other premiums or discounts) through the expected life of the debt instrument.25. as appropriate. An onerous contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract. IFRS 7. 3. at the directors' best estimate of the expenditure required to settle the Group's obligation. 3. 'held-to-maturity' investments. where appropriate.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 continued When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party.23. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities. which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the entity. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. At the end of subsequent reporting periods.21 3.

3. Loans and receivables (including [trade and other receivables. held-to. or on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking.25. Subsequent to initial recognition. A financial asset is classified as held for trading if: it has been acquired principally for the purpose of selling it in the near term.B5(e) . and others [describe]) are measured at amortised cost using the effective interest method. bank balances and cash. When the investment is disposed of or is determined to be impaired. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the 'other gains and losses' line item.2Financial assets at FVTPL Financial assets are classified as at FVTPL when the financial asset is either held for trading or it is designated as at FVTPL. 3. and IAS 39 permits the entire combined contract (asset or liability) to be designated as at FVTPL. interest income calculated using the effective interest method and dividends on AFS equity investments are recognised in profit or loss. AFS equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured and derivatives that are linked to and must be settled by delivery of such unquoted equity investments are measured at cost less any identified impairment losses at the end of each reporting period. A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if: •such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise.25. The foreign exchange gains and losses that are recognised in profit or loss are determined based on the amortised cost of the monetary asset. with any gains or losses arising on remeasurement recognised in profit or loss. Changes in the carrying amount of AFS monetary financial assets relating to changes in foreign currency rates (see below). The fair value of AFS monetary financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate prevailing at the end of the reporting period. Listed redeemable notes held by the Group that are traded in an active market are classified as AFS and are stated at fair value at the end of each reporting period. Other foreign exchange gains and losses are recognised in other comprehensive income. 3. or •the financial asset forms part of a group of financial assets or financial liabilities or both. The Group also has investments in unlisted shares that are not traded in an active market but that are also classified as AFS financial assets and stated at fair value at the end of each reporting period (because the directors consider that fair value can be reliably measured).5Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. in accordance with the Group's documented risk management or investment strategy. Fair value is determined in the manner described in note 40.4Available-for-sale financial assets (AFS financial assets) AFS financial assets are non-derivatives that are either designated as AFS or are not classified as (a) loans and receivables.25. b)held-to-maturity investments or (c) financial assets at fair value through profit or loss. less any impairment. Dividends on AFS equity instruments are recognised in profit or loss when the Group's right to receive the dividends is established.25. or it is a derivative that is not designated and effective as a hedging instrument. or it forms part of a contract containing one or more embedded derivatives. which is managed and its performance is evaluated on a fair value basis.3Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Group has the positive intent and ability to hold to maturity. Other changes in the carrying amount of available-for-sale financial assets are recognised in other comprehensive income and accumulated under the heading of investments revaluation reserve. IFRS 7. Financial assets at FVTPL are stated at fair value.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 continued 3. Fair value is determined in the manner described in note 40.maturity investments are measured at amortised cost using the effective interest method less any impairment. and information about the grouping is provided internally on that basis. the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss.

7Derecognition of financial assets The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset. Subsequent recoveries of amounts previously written off are credited against the allowance account. For certain categories of financial assets. When a trade receivable is considered uncollectible. an increase in the number of delayed payments in the portfolio past the average credit period of 60 days. impairment losses are subsequently reversed through profit or loss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss. For financial assets measured at amortised cost. In respect of AFS equity securities. except for short-term receivables when the effect of discounting is immaterial. it is written off against the allowance account. Financial assets are considered to be impaired when there is objective evidence that.continued Interest income is recognised by applying the effective interest rate. in a subsequent period.6Impairment of financial assets Financial assets. 37(b) For AFS equity investments. as well as observable changes in national or local economic conditions that correlate with default on receivables. the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. For all other financial assets. When an AFS financial asset is considered to be impaired.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income and accumulated under the heading of investments revaluation reserve. such as trade receivables. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables. discounted at the financial asset's original effective interest rate. objective evidence of impairment could include: significant financial difficulty of the issuer or counterparty. Changes in the carrying amount of the allowance account are recognised in profit or loss. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset. or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.B5(1). For financial assets carried at amortised cost. the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. or it becoming probable that the borrower will enter bankruptcy or financial re-organisation. the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. . In respect of AFS debt securities. where the carrying amount is reduced through the use of an allowance account. the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. the estimated future cash flows of the investment have been affected.25. Objective evidence of impairment for a portfolio of receivables could include the Group's past experience of collecting payments. cumulative gains or losses previously recognised in other comprehensive income are reclassified to profit or loss in the period. other than those at FVTPL. or •the disappearance of an active market for that financial asset because of financial difficulties. For financial assets that are carried at cost. if. Such impairment loss will not be reversed in subsequent periods. the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised. 3. or breach of contract.25. as a result of one or more events that occurred after the initial recognition of the financial asset. assets are assessed for impairment on a collective basis even if they were assessed not to be impaired individually. 3. impairment losses previously recognised in profit or loss are not reversed through profit or loss. are assessed for indicators of impairment at the end of each reporting period. IFRS 7. such as a default or delinquency in interest or principal payments. a significant or prolonged decline in the fair value of the security below its cost is considered to be objective evidence of impairment. the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows.

continued On derecognition of a financial asset in its entirety.g. A cumulative gain or loss that had been recognised in other comprehensive income is allocated between the part that continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of those parts. the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. in which case. This is recognised and included in equity.262Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.41 Financial liabilities at FVTPL Financial liabilities are classified as at FVTPL when the financial liability is either held for trading or it is designated as at FVTPL. net of income tax effects. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in profit or loss.264Financial liabilities Financial liabilities are classified as either financial liabilities 'at FVTPL' or 'other financial liabilities'. and the part it no longer recognises on the basis of the relative fair values of those parts on the date of the transfer. In addition.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 .21 . No gain or loss is recognised in profit or loss on the purchase. At the date of issue. A financial liability is classified as held for trading if: it has been acquired principally for the purpose of repurchasing it in the near term. The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole.263Compound instruments The component parts of compound instruments (convertible notes) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 3. 326Financial liabilities and equity instruments 3. On derecognition of a financial asset other than in its entirety (e. When the conversion option remains unexercised at the maturity date of the convertible note. No gain or loss is recognised in profit or loss upon conversion or expiration of the conversion option. Transaction costs relating to the equity component are recognised directly in equity. or on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together IFRS 7. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. sale. Equity instruments issued by a group entity are recognised at the proceeds received. the balance recognised in equity will be transferredto [share premium/other equity [describe]]. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortised over the lives of the convertible notes using the effective interest method. and is not subsequently remeasured. net of direct issue costs. the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss.261Classification as debt or equity Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 3. the balance recognised in equity will be transferred to [retained profits/other equity [describe]]. Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. the conversion option classified as equity will remain in equity until the conversion option is exercised. issue or cancellation of the Company's own equity instruments. 3. the Group allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement.26. when the Group retains an option to repurchase part of a transferred asset). 3. Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company's own equity instruments is an equity instrument.

or it forms part of a contract containing one or more embedded derivatives. interest rate swaps and cross currency swaps. to the net carrying amount on initial recognition. Fair value is determined in the manner described in note 40. and IAS 39 permits the entire combined contract (asset or liability) to be designated as at FVTPL. which is managed and its performance is evaluated on a fair value basis. Financial liabilities at FVTPL are stated at fair value. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument.21 . The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. and only when. 3. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. Further details of derivative financial instruments are disclosed in note 40.43 Financial guarantee contracts A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. 3.continued A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if: •such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise. Financial guarantee contracts issued by a group entity are initially measured at their fair values and. cumulative amortisation recognised in accordance with the revenue recognition policies. in accordance with the Group's documented risk management or investment strategy. 3.44 Derecognition of financial liabilities The Group derecognises financial liabilities when. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the 'other gains and losses' line item. and •the amount initially recognised less. and information about the grouping is provided internally on that basis. 327Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks. or (where appropriate) a shorter period. 3. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate. if not designated as at FVTPL. transaction costs and other premiums or discounts) through the expected life of the financial liability.B5(e) IFRS 7. in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.26.42 Other financial liabilities Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method. including foreign exchange forward contracts. or •the financial liability forms part of a group of financial assets or financial liabilities or both.26. the Group's obligations are discharged.271Embedded derivatives Derivatives embedded in non-derivative host contracts are treated as separate derivatives when they meet the definition of a derivative. where appropriate. are subsequently measured at the higher of: •the amount of the obligation under the contract.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . as determined in accordance with IAS 37. their risks and characteristics are not closely related to those of the host contracts and the contracts are not measured at FVTPL. with any gains or losses arising on remeasurement recognised in profit or loss. IFRS 7. cancelled or they expire. Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period.26.

282Cash flow hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve. and is included in the 'other gains and losses' line item. The change in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are recognised in profit or loss in the line item relating to the hedged item. 3. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. the gains and losses previously recognised in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognised in profit or loss. or when it no longer qualifies for hedge accounting. 3.281Fair value hedges Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately. along with its risk management objectives and its strategy for undertaking various hedge transactions. Hedge accounting is discontinued when the Group revokes the hedging relationship. 3. the gain or loss accumulated in equity is recognised immediately in profit or loss.21 328Hedge accounting The Group designates certain hedging instruments. when the hedged forecast transaction results in the recognition of a non-financial asset or a nonfinancial liability. Note 40 sets out details of the fair values of the derivative instruments used for hedging purposes.continued IFRS 7. together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. . terminated. as either fair value hedges. when the hedging instrument expires or is sold. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and accumulated under the heading of foreign currency translation reserve. Furthermore. terminated. Any gain or loss recognised in other comprehensive income and accumulated in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. embedded derivatives and nonderivatives in respect of foreign currency risk. or exercised.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 . or when it no longer qualifies for hedge accounting. which include derivatives. in the same line as the recognised hedged item. or exercised. the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. or hedges of net investments in foreign operations. cash flow hedges. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. when the hedging instrument expires or is sold. When a forecast transaction is no longer expected to occur. At the inception of the hedge relationship. Hedge accounting is discontinued when the Group revokes the hedging relationship. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date. However.283Hedges of net investments in foreign operations Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. at the inception of the hedge and on an ongoing basis. The gain or loss relating to the ineffective Gains and losses on the hedging instrument relating to the effective portion of the hedge accumulated in the foreign currency translation reserve are reclassified to profit or loss on the disposal of the foreign operation. the entity documents the relationship between the hedging instrument and the hedged item.

The estimates and underlying assumptions are reviewed on an ongoing basis.125. IAS 1. and the agreed limitation on the customer's ability to require further work or to require replacement of the goods. The matters disclosed will be dictated by the circumstances of the individual entity. Following negotiations. the directors considered the detailed criteria for the recognition of revenue from the sale of goods set out in IAS 18 and.905 million (31 December 2011: CU4. or as part of the relevant accounting policy disclosures.015 million). Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period. IAS 1. in line with the Group's general policy of recognising revenue when goods are delivered. in determining the Group's deferred taxation on investment properties. or whether it was more appropriate to defer recognition until the rectification work was complete. the Group has not recognised any deferred taxes on changes in fair value of investment properties as the Group is not subject to any income taxes on disposal of its investment properties. In the application of the Group's accounting policies.Critical accounting judgements and key sources of estimation uncertainty Note: The following are examples of the types of disclosures that might be required in this area.2 below). 4.1Revenue recognition Note 13. the directors are satisfied that the significant risks and rewards have been transferred and that recognition of the revenue in the current year is appropriate. rather than through sale. As a result. apart from those involving estimations (see note 4. These goods were delivered to the customer in the months of January to July 2012. Actual results may differ from these estimates. that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. in conjunction with the recognition of an appropriate provision for the rectification costs.1Critical judgements in applying accounting policies The following are the critical judgements. whether the Group had transferred to the buyer the significant risks and rewards of ownership of the goods. estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. the directors were required to consider whether it was appropriate to recognise the revenue from these transactions of CU19 million in the current year. in particular. Therefore. which will involve expenditure by the Group until 2014.1. and other key sources of estimation uncertainty at the end of the reporting period. In the light of the problems identified. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. the directors have determined that the presumption that the carrying amounts of investment properties measured using the fair value model are recovered entirely through sale is not rebutted. .1. In making their judgement. The carrying amount of the held-to-maturity financial assets is CU5. 129 4. or in the period of the revision and future periods if the revision affects both current and future periods. it may be more appropriate to include such disclosures in the relevant asset and liability notes. which are described in note 3. and by the significance of judgements and estimates made to the performance and financial position of the entity. Instead of disclosing this information in a separate note. the directors are required to make judgements.6 describes the expenditure required in the year for rectification work carried out on goods supplied to one of the Group's major customers.2Key sources of estimation uncertainty The following are the key assumptions concerning the future. 4. a schedule of works was agreed. Details of these assets are set out in note 22. Following the detailed quantification of the Group's liability in respect of rectification work. and shortly thereafter the defects were identified by the customer. 4.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 continued 4.1.3Deferred taxation on investment properties For the purposes of measuring deferred tax liabilities or deferred tax assets arising from investment properties that are concluded that the Group's investment properties are not held under a business model whose objective is to consume substantially all of the economic benefits embodied in the investment properties over time. that the directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the consolidated financial statements.2Held-to-maturitv financial assets The directors have reviewed the Group's held-to-maturity financial assets in the light of its capital maintenance and liquidity requirements and have confirmed the Group's positive intention and ability to hold those assets to maturity.122 4.

including interest of CU46. respectively.193 13.347 60 sales future periods if future market activity indicates that such adjustments are appropriate. which are described in more detail in note 11.709 IAS 12.418 (6.215 18.observable 493 -retail outlets Year Year ii)The amount represents a net gain on non-derivative held for trading financial assets (see note 22) and comprises an Held-to-maturity investments 445 410 Effect of unused tax losses and tax offsets not recognised as deferred tax assets Effect market to estimate the fair value of certain types of financial instruments.479 investments Total The for carrying continuing amount operations of goodwill at 31 December 2012 was 140.555 11.4.388 18. even if returns are reduced.057 current Sports shoes 11. corporate entities in A Land on taxable profits under tax law in that jurisdiction. The net 12.Construction residential properties CU'000 iii)The amount represents a net of loss arising on an interest rate swap that economicallyCU'000 hedges the fair value of the Arising on income andthat expenses reclassified fromtechniques equity to profit loss: IAS The directors believe the chosen valuation and or assumptions used are appropriate in determining Dividend income earned on available-for-sale financial 156 154 deferred tax balances due to the change in income taxassets ratefor redeemable cumulative preference shares.8 million) which arose from sales to the Group's 7.868 140.186 1.3Useful lives of property. 31/12/11 ended arising from its e-business development. including local regional markets). 1. services.933 public Year Year Information about major customers Royalties 79 (488) 28 designated fair value hedge accounting relationship IFRS 7.071 125 11.81(c) The tax rate used for the 2012 and 2011 reconciliations above is the corporate tax rate of 30% payable by assets.2 Income continued continued tax recognised directly in equity continued IAS 4.22 Unwinding of discounts on on provisions 28 30 IAS 40.071 cash-generating units to 20. Segment before tax earned by each segment without allocation of central administration 4. Construction 5.874 from xx% to xx% (effective [insert date]) the fair value of financial instruments.646 4.303 32.4Valuation of 8.20(a)Included Net gain/(loss) arising on financial assets classified as held for trading (ii) 202 99 is tobefore increase the consolidated depreciation expense in the current financial year and for the next 3 years. the directors reconsidered the recoverability of the Group's internally generated Year intangible asset Year IFRS IAS 8.35(b) The following is an analysis of the Group's revenue for the year from continuing operations (excluding investment The following is an analysis of the Group's revenue and results from continuing operations by reportable 31/12/12 segment.555 11.81(a) 9. The income tax expense for the year can be reconciled to the accounting profit as follows: ended ended tax liabilities Electronic equipment .2Impairment of goodwill Others [describe] Arising on transactions with owners: Interest on perpetual notes 52 -18.531 asset Share buy-back costs (8)Current tax Finance lease contingent rental income IAS 17.35(b) IAS 21.331 2. This situation will be closely monitored.215 to estimate 3.year.040 1.639 1.24(a) IFRS 7. 1. and adjustments made inInterest Electronic on loans equipment from related direct parties 37.524 6. However.20(a)Income Cumulative gain/(loss) reclassified equity disposal of 11. Investment income earned on non-finandal assets 1.wholesalers 13. Details of the impairment loss calculation IAS Less: amounts included in the cost of qualifying assets (11) (27) 7. IFRS 8.773 on convertible notes of available-for-sale investments 110 ~ Construction contract revenue 5. increased competitor31/12/12 activity has caused the Continuing operations Revenue 31/12/11 31/12/12 31/12/11 31/12/12 31/12/11 from (restated) 125 60 directors to reconsider their assumptions regarding future market share and anticipated margins on these products.76(d) equipment' Gain/(loss) arising changes in fair value of investment property 297 31/12/12 31/12/11 36082 and ‘leisure goods' operations.204 individual financial Net foreign exchange gains/(losses) 819 nil) 98 474 Adjustments to deferred tax attributable to changes in tax rates and laws Write-downs 18.266 91. share operations of profits of under associates.608 2. parent (and in the separate orCU1.534 6.6 to the ‘electronic -operating direct investment income. During current year. and assets arising from 31/12/11 01/01/11 over-the-counter market.35(b) Investment property 18 14 IAS wholesalers 20. CU'000 CU'000 ended ended Current tax assets (b) profit The Group's revenue from continuing operations from external customers by location CU'OOO CU'OOO Year Year of operations CU'000 Year CU'000 Year Yearand information Year CU'000 CU'000 31/12/12 31/12/11 Benefit of tax losses to be back to recover taxes paid in prior The project continues tocarried progress in a satisfactory manner.35(b) IFRS 7.direct sales 529 (4.418 6.000)).000 during the year.000 (2011: 99.137 1.79 In respect of the current year 10.079 5 statements of an entity): (reversals ofand previous write-downs) of deferred tax assets 8. plant and equipment 6 67 lease rental income: 12.81(d) _ Electronic equipment 85.101 customer.28(b) 1.24(b)The Hedge ineffectiveness on cash flow hedges 89 68 The following is an analysis of investment income by category of asset. 36082 On disposal of a foreign operation (36) operations. as well or asloss the detailed IFRS Computer .484 362 sale.retail outlets 18 14 investments Other expense 25 — whichinterest goodwill has been allocated.2.131 Deferred tax before tax from continuing 30. There were of nothe inter8.26(a) Investment income CU'000 3. segment information reported on the next pages does not include any amounts for these discontinued Sports equipment 9.23(b) IFRS Rectification costs of CU4. B Land and C Land.850CU3.091 9.000).56(b) Others [describe] . No operating segments have been aggregated in arriving at the reportable segments of the Group. deferred taxand assets.232 128. Year Year 31/12/11 31/12/12 assets 31/12/12 31/12/11 31/12/12 31/12/11 income .see noteat 7).internet sales 27.5 million (31 December 2011: CU0. position: IAS Gain recognised on disposal of interest 40 Others [describe] Held-to-maturity investments 445 410 4.773 389 1.852 will be recovered in full. ended ended Translation of foreign operations 22 36 2014 144 8.005 IFRS 8.Revenue 104Current tax assets andresults liabilities operations 8.1 million) 35. Outdoor play equipment 12. the Group's reportable segments IFRS 8 arerecognised as follows: on disposal of interest costs and directors' salaries.201 5.252 4. Other gains and losses 62Segment 66Geographical revenues information and Year Year Year Year IFRS 8..298 IAS Contingent rental Current tax liabilities . Segment expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value.452 18. CU'OOO CU'OOO The weighted average capitalisation rate on funds borrowed generally is 8.3 Income contracts.593) 62above) are revenues of approximately CU25.18 above.878 In Interest respect income: of the current year 1.875 after FVTPL 4. post-employment benefit assets.298 4.964market.during increase in fair value of CU202. the information is further analysed based on the different classes30 of segment sales in the current year (2011: nil).773 Arising on gains/losses of hedging instruments in cash flow hedges current tax of8.23(d) 4.5 million). including interest Others [describe] .589 are set in note 17. „ [describe] .215 receivables Adjustments in the current year in relation to the Installation ofrecognised computer software Income (see relating to financial assets classified as at fair value through profit or loss is included in 'other gains and notes 13 and 25).619 1.20(b) 31/12/12 31/12/11 sensitivity analysis for these assumptions.continued continued continued 31 December 2012 continued 2012 2012 10. and in respect 'electronic IFRS Current tax Segment revenue reported above revenue generated external customers.650 541 IFRS 8.709 (5) commission Impairment losses for process the year infiling.634 448105Deferred tax balances Excess tax deductions related to share-based payments 22.918 IFRS 7.521 Others [describe] IAS IAS 1.315 1.298 4.462 Others [describe] an impairment loss of CU235.555 11.563 29.35(b) Others [describe] Leisure goods .000 received the year (2011: ended ended previously unrecognised and unused tax losses and deductible about thesoftware keyincome assumptions used in the determination of not the fair value ofas financial instruments.843 Central administration costs and directors'for salaries (2. The directors of the Company have chosen to organise the Group around differences in products and 7.0% per annum (2011: 7.98(d) Interest Gain/(loss) onincome disposal .6 million (2011: CU19.2.918 CU20.347 Interest on interest-free government loans from 188 Determining whether goodwill is impaired requires anon estimation of vailable-for-sale the value in use of the 10.632 CU24.7 Net gain/(loss) arising on financial liabilities designated as at FVTPL (i) (6. Year Year Depredation and Additions to During the year.98(c) Operating Gain/(loss) on disposal of property.24(a) following amounts: 31 Year Year -internet sales CU'000 CU'000 390 _ Others (aggregate immaterial items) 1.348 -40.083 equipment should be due to developments in technology.388 18.6 million) (see note IAS Dividends from equity investments 156 154 (4. the Group uses valuation techniques that include inputs that are not based on Property revaluations . plant and equipment: (Gain)/loss arising onshortened. decision maker for the purposes of resource allocation and assessment of segment performance.641 6.699 6.514 18. note 13. 1.547 (3. IAS Total information interest expense for financial liabilities not classified as at 5.963 14. Note 40of provides detailed information Othersdata [describe] .709 .Installation computer software for specialised business Total interest earned onof financial assets that are designated at fair value through profit 2.840 tax payable 5.23(i) and CU235.110 IAS .562 Available-for-sale financial assets 154 98 i)The net loss on these financial liabilities designated as at FVTPL includes a gain of CU125.630 assets Deferred (5.303 Specifically.80 11.34 -wholesalers 285 12.513 66 6.20(d) that files. as well as outdoor play equipment.388 respect of trade 18. Noof other single customers contributed 10% or more to the Group's revenue for both and 2011. 167 Other loans receivables 4.000 (2011: nil) were recognised in respect of property.106 Deferred tax reclassified from information equity to profit or loss by IFRS 8 Operating Segments (150) (86) Bank deposits 1. temporary differences now recognised as deferred tax assets 177 648 7. The leisure goods segments supply sports shoes and equipment.509 39.351 No other gains or losses have been recognised in respect of loans and receivables or held-to-maturity investments.Source Source Source Source Source Source International GAAP Holdings Limited International GAAP Holdings Limited International GAAP Holdings Limited International GAAP Holdings Limited International GAAP Holdings Limited International GAAP Holdings Limited International GAAP Holdings Limited Notes to the consolidated financial Notes to the consolidated financial Notes to the consolidated financial statements statements for the year ended Notes Notes to to the the consolidated consolidated financial financial Notes to the consolidated financial statements 31 December 2012 continued Notes Notes to toyear the theconsolidated consolidated financial financial statements for the ended 31 December 2012 statements statements for for the the year year ended ended 31 31 December December for the year year ended 31 December 2012 Notes to the consolidated financial statements for the year ended statements statements for for the the year year ended ended31 31 December December for the ended 31 December 2012 -continued 2012 2012 .23. Other finance costs accounting policies of the reportable segments are the same as the Group's accounting policies described in note IFRS Construction 235 ~ services.436) Finance costs ) ) ) IFRS The financial effect of this reassessment.5 million (2011: CU39.372 17.3 million (31 151.Income 7. or31/12/12 (restate As described at 3.054 11 5 Effect of different tax rates of subsidiaries operating in other jurisdictions Effect on applications Construction .128 (73) (26) other than as disclosed in notes 7 and 9 and impairment losses recognised/reversed in16.921 4. by dividends of CU613.567) (4.018 9.2.47(e) Revenue from the sale of goods 119.618 5.918 151. the Group reviews the estimated useful lives of property.81(c) ) (2.056 Detailed sensitivity analysisand hasloans been (other carried out and the directors are confident that the carrying amount of the 3.2.603) IFRS 7.351 in fair value hedges 5 ) d) 10.20(a)insurance Net gain/(loss) arising onthe financial assets asdetermined at FVTPL that the useful lives of .32.20(a)largest Information reported to the chief operating decision maker for the purposes of resource allocation and2012 assessment of in cash flow hedges of floating rate debt reclassified from equity to profit or loss (123) (86) ended ended IFRS segment performance focuses onrepresents the types of goods or services from delivered or provided.17 million (2011: nil) disclosed in costs.260 Initial recognition of the equity component of convertible notes 242 Deferred tax 6. Investment segment taxes income information relating to continuing 12. _ 2015 102 hedge of a net investment a foreign operation (4) Effect of income that is -wholesalers exemptin from taxation (39) (90) 65Revenue from majorto products and services sales 28 in 'other2.20(a) Construction Share issue and buy-back expenses deductible over 5 years (75) Cumulative loss reclassified from equity on impairment of available-for-sale IFRS 12. 24(b) ended ended amortisation non-current ended ended ended ended 23(a) 18. but which hedge accounting is not applied (see note 34).Finance costs 5. The value in use calculation requires the directors the future cash flows Computer software 16. prior years losses' in note transferred to the initial carrying of hedged items Income tax expense recognised inamounts profit or loss (relating to Total income tax recognised in other comprehensive income continuing operations) (77) (60) 140.351 Unwinding of discount on costs toyear sell non-current assets classified as held for sale Impairment loss recognised for the in respect of goodwill 2012 879 CU'OOO CU'OOO customers. Net gain/(loss) arising on financial liabilities classified as held for trading(iii) (51) 18.221 24 Finance costs relating financial liabilities classified as atassets fair value through gains Fair value remeasurement of available-for-sale financial Fair value profit or loss are included Effect of expenses that -internet are not deductible in determining taxable profit 2. 95 The following is an analysis the Group's revenueoffset from continuing operations from its major products IFRS cash flow hedges 131 Impairment losses on goodwill that are not deductible 5 546 and 8.24(c) Profit Hedge ineffectiveness on net investment hedges .designated the directors certain items IAS 12.666 other regulatory organisation the purpose of issuing any class of instruments in a (2. gain in former associate. adjustment for hedged item of attributable toto the hedged risk in a (ab) Deferred tax recognised 2. by the Profit tax (continuing operations) 61Products and services from which reportable segments derive their revenues (Gain)/loss arising on interest rate swaps as designated hedging instruments 31/12/12 31/12/11 IFRS 30.direct of sales Fairreportable value remeasurement hedging instruments sales' segment. financial instruments and losses' in note Effect remeasurement of concessions of hedging (research instruments and development entered and into other for allowances) (75) (66) Loans and receivables (including cash and bank balances) 1. respect property.1Recoverability of internally generated intangible asset 64Other 10.332 3.33(a). plant (restated and equipment at the end 23.840 December 2011: 31.954 Deferred tax (9) In respect of prior years IAS 1. and customer reaction has reconfirmed the directors' about its non-current assets* by location of assets are detailed below.8% per annum). or is in the its (consolidated) financial statements with a securities or Total income tax expense recognised in of the current year relating continuing operations 11.204 CU'000 8.143 Relating to cash flow (37) (26) of loss on the hedges interest rate swap comprises an increase in fair value of CU51.840 27 562 11.315 CU27.000 resulting from the 7.of of each reporting period. The Relating to available-for-sale financial assets Two operations (the paid manufacture and sale of toys and bicycles) were discontinued in the 11.023 Year Year IFRS 7.20(b) The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial Available-for-sale investments 154 (2011: consolidated financial statements of a group with a above.000 of the swap.32 As described in note 40.52(a) Share IFRS In addition to the depreciation and amortisation reported impairment losses of million of out profits of associates 1. assuming the assets are held until the end of their estimated useful lives.23(1) Electronic equipment .500 _ IFRS 7.023 IFRS in revenues arising from direct sales of electronic equipment of CU37. which isareas included in the consolidated statement ofended financial position at 31 The Group operates in three principal geographical .005 IFRS 7. *Non-current assets exclude those relating toy and bicycle operations and non-current assets classified as held for Totalimpairment income tax losses recognised directly in equity 158 whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an CU'00 CU'000 CU'000 arising on derivatives as designated hedging instruments inLoss/(gain) former associate 581 Impaired financial assets (note 44) 0 1.81 Other gains and losses 647 1. plant and eouipment Gain arising on effective settlement legal claim against Subseven Limited IAS These were attributable to of the following reportable segments.194 22.716 Leisure goods wholesalers decrease in fair of value of the liabilities. and exclude financial instruments. other gains and losses as well as finance This relate is the measure reported equipment to the chief 31/12/12 647 31/12/11 Income tax expense calculated at 30% (2011: 30%) entered into for a 9. Share issue costs (1) CU'000 CU'000 Rental income: Continuing operations CU'000 parties) CU'000 CU'000 CU'000 Interest on bank overdrafts than those from related 3.75(f) 4. tax recognised in other comprehensive income 2.A Land (country of domicile).000 11.270 5.1 8.151. Segment revenue Segment 31/12/12 31/12/11 December 2012 CU0.23(e).632 5. (restated) 2013 profit represents the profit 607 3.28(a) Note: The following segment is required to be presented in-the 12. Interest on obligations under finance leases 75 54 Revenue from the rendering of services 16.20(a)6. ended ended ended ended ended ended periods Tax refund receivable Others [describe] CU'OOO CU'OOO Current tax Continuing operations CU'000 CU'000 previous estimates of anticipated revenues from the project. plant and equipment and goodwill. .946 11.054 IFRS 7.000 paid during the year.000 was recognised during 2012 (2011: nil).

530 12.920 for sale nor at 31 December 2012.4 and recent experience the valuation of properties in the locations. Others 2 — IAS 40. the disclosures in relation to the EPS information should comply fully with the requirements set out in 11.3 Interest convertible (after(1.1 83. or is in for thesale process of filing.31 December statements statements statements for for the the year year for ended the ended year 31 31 ended December December ended 31 December 2012 continued statements for the year ended 31 December year statements statements ended 31 for for December the the year year ended ended 2012 31 31 continued December December statements for the year ended 31 December revalued cost finance statements for the year for ended the year 31 December ended 31 2012 December continued 2012 continued 2012 2012 continued continued 2012 continued 2012-continued continued 2012 2012 continued Year Year 2012 continued amount lease at IAS 2012 continued continued IAS 12.internet sales' carrying amount Year Year IAS 36.843 the Messrs R &goods P Trent are members of the believe Institute of Valuers of A Land. Direct operating The directors expenses estimate from investment that a decrease property in that growth rate by 1 to 5% would impairment loss of CU1. with a provision of CU3.-in respect ..126(a) IFRS Year Year (e) Derecognised on disposal of aout subsidiary ..478 ended Termination benefits FVTPL assets . Openin in profit hensive directly to profit Acquisition for salenot Closing '000 '000 _ 31/12/12 31/12/11 g 31/12/12 / 31/12/11 Accumulated impairment losses (235) all of the Group's toy manufacturing operations.310 9.310) (9. but without achieving any significant in 36. The Group is not allowed to pledge these assets as except for (note efficiency The directors expect efficiency improvements of Derecognised on disposal of a subsidiary 45) improvements.by been _ ended ended Accumulated impairment losses IAS IAS 33.(restated) 2 64.carrying .5 47. which have a carrying amount of CU28. toy and bicycle businesses) in -the profit for the year Provisions 1.076 IAS Accumulated 2011 (restated) depreciation and balanc impairment or or loss income in equity (1.602500 4._ -(376) for the next five years is reasonably Balance at beginning of year 24. These assets are 36. _ Reversals of impairment losses recognised in profit From continuing operations 74.686) The combined results of the discontinued operations (i.directors' .Electronic equipment . among factors. is still acknowledged as one of the top out a patent review of the of that manufacturing plantwhich and the related equipment.-budget 36 . The directors believe that any reasonably possible change in the other key assumptions on which recoverable 1 2 impairment.20(e) (restated) 31/12/12 31/12/11 31/12/12 .000 Cash flow (119) (131) -loss 114 (136) the assets and liabilities disposed of.Group's -.97 cash flow projections based on financial budgets approved the directors covering five-year period. valuation was 13.-relating 2.per other share ended ended 152Freehold land and buildings carried at revalued amounts (g) 17..422 growth Net investment hedges .17 million have been consistent recognised with during external sources of information.3 137. Eliminated on Group's revaluation .77(e) CU'000 in CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 reasonably possible further change the key assumptions onwere which recoverable amount is based would not cause 20.620 153 Assets pledged as outlets security — on achievable.260 On 28 September 2012.654 31/12/12 31/12/11 Year Year □ abilities associated with held (ii) 3.058 27.268) .520 endedper Others [describe] .659 assets in relation to: Construction operations other.41 19. the internet sales cash-generating unit benefits from the protection of a 20During year.e.130 The following useful lives are used in the calculation of depreciation.000.. No other write-down of the assets of Murphy Construction is considered necessary._ which Raw materials price inflation Forecast consumer indices during the period for the countries from '000 Leisure goods . and a„ Eliminated on to revaluation . The directors that any reasonably possible change in the key assumptions Revenue 77.601 12.350 The directors have consequently . Deferred tax (liabilities)/ Defined benefit plans 896 428 19.851 10.948) balance whose ordinary shares potential ordinary shares are traded in a public market (a domestic or foreign e 12) CU'000 CU'000 CU'000 CU'000 Had the Group's land and buildings (other than land and buildings classified ason held for sale or included in a disposal the related net assets and.2 (see note 35).Increase .30 Cost equipment The following table summarises that effect on both and -diluted earnings per share..130 1.610 -cash4. on control thefor toy manufacturing operations passed to the acquirer.254) or Group.Murohv Construction used in the Group's electronic equipment reportable segment. The recoverable amount of the reclassified from foreign currency translation reserve did not result inor the aggregate carrying amount of the cash-generating unit the recoverable amount of the cash.36(c) Eliminated onearnings reclassification as held for sale 14.price (22) .81 (a). 86 _ (119) Freehold land 11.104 Loss onthe remeasurement toother fair value costs to sell market.81(h) that five-year period have been extrapolated using a steady 21 % (2011: 18%) per annum growth rate.060 IAS Costs of CU4.internet sales IFRS Post employment benefits (see note 39) exceed the long-term average growth rate the construction market in A Land.arrived 2CU'000 CU'000 recoverable amount of the cash-generating unit.31/12/11 (1.678) (508) (37. plant & (2.B67(d) 2.432 increase 20. and they have 64. disclosed in note 45. the Group's obligations under finance leases (see to the leased Balance 31 December 2011 (2..expected -_ .of these 16.527 Exchange difference on basic diluted earnings reporting period are asfinancial follows: Convertible notes 9 another (242) .090 (3. in 2006.135 27. IAS 20.(181) Property. plant and equipment 9.446) Profit before tax 9.81 (a).internet sales' segment aswhether a cash-generating unit is determined investment properties.634) (177) (167) 150 454 430 (4. from investment property year on the recoverable Series Z electronic granted in 2007.413) (18) (38.610 1.659 _ (decrease) or loss financial FVTPL financial assets _ _ .2014 (213) to: . means Equipment under finance lease which 5 years that it has no prospects of obtaining future contracts.is (3. 31/12/12 31/12/11 Year during the year (note 44) 478 attributable to the (decrease) inbusiness (decrease) in Deferred revenue 20 14 . 12. (consolidated) financial statements with awas securities commission or Profit for the year attributable to owners of the Company 23.717) (130) (15.7 IAS Year Year Others [describe] (97) (84) . losses recognised in respect of property.internet sales 8.(31 -8.757 2.000 (31 December 2011: CU162.076 .692 (20) .Earnings operations . plant and equipment 16. the carrying amount of goodwill (other than to Non-controlling interests 4.6Exceptional rectification costs assets.growth _ year (4) (22) IFRS 3.520 24.and .operations (3. in Attributable use was 9% income per tax annum. diluted earnings per share 20. including local or regional markets). they have had an impact on the amounts 31/12/12 IFRS 18.convertible notes 1.056 576 on 30 November 2012. The steady growth rate of 21% is share estimated the directors based past performance and used in in the electronic equipment reportable segments. plant and equipment in the year ended ended 13.33(d) Profit for the from continuing operations is attributable to: 16. In the light of the decision to focus the Group's construction IAS Net cash outflows from financing activities (5. 13.-5 Doubtful debts (8) . Details of other regulatory organisation the purpose of issuing class of instruments in a public market.878 directors covering a five-year period. the Group carried All of the Group's property is held under freehold IAS Others [describe] — interests.993 amortisation expense/administrative expense/other 1.892 Depreciation of property. Other employee benefits 8.305 6.603) Depreciation expense (774) (11. This growth rate does recent market transactions on arm's length term.70(a) _ __ _ _ Assets of bicycle business classified as held for sale 36.672 42 1.73(d). _ in profit for the year AFS financial assets (202) -to dispose (24) ._ _Year 34 Cents Effect beof completed foreign currency by 31 July exchange 2013.Notes Total Notes to to the the consolidated consolidated financial financial statements statements for for the year Buildings Plant and Equipment 31/12/12 31/12/11 Notes Notes to to the the consolidated consolidated financial financial statements Notes Notes to to the Notes the consolidated consolidated to the consolidated financial financial Notes to the consolidated financial statements for the year Notes to the consolidated financial Notes Notes Notes to to to the the the consolidated consolidated consolidated financial financial financial statements for the ended 31 December 2012 -financial continued Notes to the consolidated financial the year ended 31 December 2012 continued at equipment at under Notes Notes to to the the consolidated consolidated financial financial statements for statements the year ended for the 31 year December ended 31 2012 December . rectification work tocalculation be carried out Eliminated on disposal of a subsidiary . The disposal 5.68 qualifications From discontinued operations 41.794) Profit for the year from continuing operations has arrived atwith after (crediting): depreciated.on 2.4 Research and development costs expensed as 8.500) (34.659 models theGroup's market.losses . To goodwill the extent that those ended ended IAS 8.5 Employee benefits expense CU'000 CU'000 Year Year are as follows. the directors announced a been plan to dispose of the Group's bicycle business. which have included in [cost ofa sales/cost of inventories of basic earnings per share 17.8 million) have been pledged secure borrowings of the Group (see note 32). accordingly.015) (35.1 Impairment losses on CU'000 CU'000 Total employee benefits expense 11. The directors believe that any g s/ Assets related to bicycle business (ii) 21.33(d) Net cash inflows from operating 6.charging .073 to register Murphy Plant and equipment 5-15 years partly paid ordinary shares 900 Net cash inflows 4. disposal of the toy manufacturing operations is consistent with the Group's long-term the construction operations carrying amount to exceed its recoverable amount. the Group is seeking of its bicycle and anticipates that the disposal will Construction operations Murphy Construction 235 31/12/12 31/12/11 AFS financial assets (226) (28) (254) 16.019) loss disposals (378) (note (26.2Plan to dispose of the bicycle business reported for earnings per discontinued share._ the .ended IFRS operations Freehold land and buildings with a amount of approximately CU22 December 2011: approximately 2013. .714 outlets raw materials are purchased. Doubtful debts 122 129 251 are set out below. markets.included .46 IAS CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 CU'000 22. market share. However. Property. their carrying amount would have been as follows.204) 63 430 IAS The earnings used in the calculation of diluted earnings per share are as follows. The fair value of the Group's investment property at 31 December 2012 and 31 December 2011 has been arrived at (3.112 million 75 of the provision .684) IAS (3.078 Construction for this purpose. and the calculation of are the profit or on disposal.81(e) rate exceeds by 0.748 Budgeted market share Average market in the immediately before the budget plus a20.126 2 31/12/12 31/12/11 Profit for the year from discontinued operations (attributable to owners of the IFRS Construction operations . The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share IFRS (e) 135 The recoverable of the Group's remaining construction operations has been determined based on a value in associated The valuation ofamount the Group's land and buildings was performed by Messrs R &cash-generating P Trent.995) past experience and is consistent the plans for 458 focusing in Property.285 24.utilised 75 accordance with an agreed schedule of works up to 2014.995 151Impairment losses recognised in the year Profit for the year from discontinued operations used in the calculation of 12.134. determine the fair value of the land and buildings as at 31 December 2012 and 31 December 2011.Profit for the year from continuing operations IAS 16. CU'OOO CU'OOO in other from classifie d to(d) Year Year Year Year ended ended Recognis compre Recognis equity as held consolidated financial statements of a group with a parent (and in the separate or individual financial IFRS five-year period. 5.060 23. Changes in the policies during the year in detail in noteare 2. This growth IAS 7.title 1.not Reversal of impairment losses on on trade (103) -.Goodwill equipment property The following potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number 13.080) _ assets _ owners of the 13. the government of A Land introduced new regulations requiring registration and Net cash inflows from investing activities 2. (restated) operations as held for sale. _ _ _ _ Impairment losses recognised in profit or loss Property.235 Increase (226) ii)As described in note 11.747 Earnings used in an the calculation of basic earnings per share 23. Impairment losses recognised in profit or loss IAS Diluted earnings per share IAS Impairment losses recognised in the year (235) IAS 12 (see note 2.81(h) 1.995 IAS 50 44 CU0.4 Balance at beginning of year Tax losses _ _ _ 2013 Profit for the year from discontinued operations CU'OOO CU'OOO Cash and bank balances 175 _ __ _ Others [describe] (181) (32) carried .592 1. and a discount rate 9% per annum (2011: 8% per annum).006 9.30(10) .500 _ Deferred revenue 34 12 46 Cents IFRS have been pledged as security for bank loans under a mortgage. unused tax and for unused tax credits Others .2.634) tax at uses 30%) 77 based onon a value in use notes calculation which flow projections based onfactors financial budgets approved by the 92 (4.3 Direct operating expenses arising equipment.605) (1. The values reflect located on the freehold land was previously used in toy operations has been fully IFRS IAS 33. Cash flows beyond Earnings used in the calculation of diluted share 23. _ _-_ Reversals of impairment losses recognised in profit Intangible assets (669) 97 (572) Intangible assets (572) 196 -.113 (233) 11.30 ed ed period have been extrapolated using a steady 8% (2011: 8%) per annum growth rate.business _ -Increase .432 20.560) (112) (493) .6 _ _ ended ended Classified as held for sale international Tax losses leisure market.130 IAS Company) Cash flows from discontinued operations The goodwill associated with Murphy Construction arose when that business was acquired by the Group The impairment losses have been included in profit orin loss in the [other expenses/cost of sales] line item.2 Depreciation andamount amortisation expense (2. CU'000 CU'000 _ Others [describe] . sale (see note 12). These assets are also 0 incurred 38.500 1.any 4.7 49.654 Note: IAS[describe] 40. in other from classifie Note: IAS 33 Earnings per Share requires that earnings per share (EPS) information be presented in the use calculation which uses cash flow projections based on financial budgets approved by the directors covering a 11.2 Diluted per carried share 31/12/1231/12/11 Trade 720 Impairment loss on loans at amortised — Changes inTotal accounting policies relating andreceivables buy-back costs .060 Recognis compre Recognis equity as held ed ed ended ended ended ended 31/12/12 31/12/11 Freehold land held for sale (i) 1.405 appropriate Trade payables (3.33(b) _Messrs Rlong-term _Trent. plant & (3.120A(g) policy to focus its activities in the electronic equipment andits other leisure goods markets. Entities are also required to include a statement as to the determination of fair Balance at 31 December 2012 (3. Contracts in The bicycle business beenof classified accounted at 31 December Weighted averagehas number ordinaryand shares used in for the calculation of 2012 as a disposal group held for progress at the end of the year will be completed without loss to the Group.earnings 10.000 IAS operations 1 2 their rental expectations income during of market the year development.748 17.206 .73(a 15.131 Additional impairment amounted to recoverable amount.118(d) disclose).147 include those operations classified as inthe the current year.1.are retail outlets Messrs R &P Trent members of of the Institute of Valuers of A Land.833 -3 -22 5% be reasonably achievable.68 From discontinued operations 47. The values assigned to the key assumption are Eliminated on disposals of assets 106 3.060 e 12) Defined contribution plans 160 148 stock exchange or an over-the-counter market. neither when the IAS Additional amounts recognised from business combinations occurring IAS Depreciation expense (947) (14.147) share foreign operations (36) (14) 1.76 equipment „ „ Year Year Finance leases (29) 7 basic . the Openin Company entered into a sale agreement to dispose of Subzero Limited.114 million. These losses are attributable to greater than anticipated wear and tear.others [describe] determined to write off the goodwill directly related to Murphy Construction -amounting to „ CU235.share land 4 .162 9.998) IAS Total depreciation and amortisation expense 11.1) If other entities choose to disclose EPS information voluntarily in their financial statements that31/12/11 comply with discontinued Cash flow hedges operations) was allocated (110) to cash-generating (95) units as follows. (392) (392) Deferred tax liabilities (430) Balance at end diluted of year earnings (235) _ 115.549) 33.547) value is supported by market evidence or cash is more heavily based on other (which the entities should sale Attributable income tax expense (2.75(d) requires entities disclose methods significant assumptions in determining the fair value of _ Amortisation ofin intangible assetsto (included in [costper ofand sales/depreciation and sale (3. The comparative profit and cash flows from discontinued operations „ have been re-presented _ to Provisions 1.058 27.74(a) 5.3Analysis of profit for the year discontinued operations share ended per share security for other borrowings or from to sell them to entity. Weighted average number of ordinary shares used the calculation of 5. Assets classified as held for sale IAS 12.000) employee options 161 85 Buildings 20 30 years activities through the other operating units in Subthree Limited.126(a) basic earnings per share 17.957 14. The directors believe that market share per Finance leases (22) 18 206 338 A search is the underway for a buyer.75(d).078 The business has continued to activities operate on a satisfactory basis. The review led to on the recognition of an to (g) Gain/floss) on disposal of operation including a cumulative exchange gain of CU120. The gross Group has not recognised any impairment losses in respect of bicycle business.435 77.517) .50 5.058 forward to same meet anticipated expenditure in _ (1.058 27.the million .09 million.used Earnings used the calculation of basic earnings share 23. the directors have decided not1.note 38) are secured by the lessors' 209 Effect ofat foreign currency exchange differences 140 In addition. CU has been in the basic earnings per 132.268) Buildings 7.000).77(a) CU'000 CU'000 Recognised Reclassified withassets 13.Application of theduring amendments to million Cash flow projections the budget period are based on gross margins and rawand materials price current year.86 . Investment 33. The disposal completed Deferred tax (liabilities)/ that assets files.458 2.672 foreign operations (14) .1Disposal ofto toy manufacturing operations Recognised Reclassified withassets to the Group.524) (2.115 120 12 5 Source International GAAP Holdings Limited Source GAAP Holdings Limited Source International International GAAP Holdings GAAP Holdings Limited Limited Source Source Source International International International GAAP GAAP GAAP Holdings Holdings Holdings Limited Limited Limited Source Source International International GAAP Holdings Limited Source International GAAP Holdings Limited Source Source Source International International International GAAP GAAP GAAP Holdings Holdings Holdings Limited Limited Limited .165) (1. 6. Reclassified as held for sale (note 12) per year to Company per share (1. Equity-settled share-based payments 338 Associates (791) (477) used .carried .7 Inventories Impairment loss on held-to-maturity financial assets Unclaimed share issue (2.thereceivables -P the basis5% of a valuation respective dates by & independent valuers related to _ _average 36. loss 31/12/12 31/12/11 Effect of foreign currency exchange differences on which recoverable is based would not cause the aggregate carrying amount toThe exceed the aggregate IAS 33.905) (64. 143Impact of changes in accounting policies The key assumptions used in the date value in use of calculations for-the leisure goods and electronic equipment Eliminated on disposals ofwhich assets .603) (177) (167) 150 The recoverable amount of the 'electronic equipment .on 239 Balance at end of year 20. The proceeds of sale substantially exceeded the carrying amount of 2012 balanc or for loss income in equity or loss disposals (note balance Electronic equipment . cost Construction 14.-per 19.period.310) (9. plant and 16.556 454 430 Net assets of bicycle business classified as held for expenses]) 31/12/12 31/12/11 17.944 33.165) CU'000 CU'000 Cash-settled share-based payments IFRS IAS basic earnings per share from discontinued operations (8. independent valuers not related 31/12/11 Goodwill hasyear been allocated for impairment testing purposes to the following units.208 Other financial liabilities 9 discontinued (4) Goodwill Weighted average number of 251 ordinary shares for the purposes 1.of (4) .70(a) 141Basic earnings per share 33.016 21.336 Construction operations Murphy Construction (restated) group) been measured on The a historical cost basis.803) (12.„ The weighted average number of ordinary shares for the value purpose ofexceeding diluted earnings perused share reconciles tovalue the relevant assets has been determined on the basis of their in use.794) ended ended Budgeted margin Average gross margins achieved in the period immediately before the budget period. The valuation was determined reference to Cost 20. 12. Impairment loss on available-for-sale equity investments .204) _ (1. During the year.70(b) Impairment loss on available-for-sale debt investments Other financial liabilities 5 2 7 goods supplied one of the Group's major customers.share -cost .268 10. Cash flows beyond thatby five-year d Leisure goods .to the assumption (1.520 24.internet sales □ abilities of bicycle business associated with assets classified as held Expenses (54.relevant .104 Exchange difference on IFRS 7.28(f) Share-based payments (see note 42.587) Current tax liabilities IAS Other gains 49 Others 2 in . The Group is actively seeking a buyer for its bicycle business and expects to complete the Year sale by 31 July Year Earnings used in the calculation of basic earnings per share from continuing 14.0 Effect of foreign currency exchange 2 -_ ..142 CU27.593) (448) (648) (3. 40. On 30 November 2012. liabilities of the bicycle at_ the end of the Construction operations other 1.340 2.381 7.304 to exceed its amount is based would not cause the 'electronic equipment . (3.430 . expense No impairment assessment was performed in 2011 as there was (636) no indication of IAS 33.593) (450) 86 of work to be . and aearnings discount per rate of 9% per annum (2011: 8% per annum).767 IAS 12. IAS '000 '000 36. The freehold land and buildings operation was reclassified as held forto sale nor the end of the reporting period.described (2) (2) Before recognition ofaccounting impairment losses.retail CU'OOO -'000 Impairment loss on trade receivables (see note 25) 63 430 Basic earnings per share Others [describe] 13.322 Electronic equipment .624) of 1-2% of(356) market share per year. IAS 16.70(b) 11 11 average number of ordinary shares used in the calculation of basic earnings per share as follows.995) IAS 1.148 7.605) and employee benefits expense] (2011: nil). The amount(648) represents the 153 estimated cost out in discount rate of 9% per annum 8% per annum). The property IFRS IFRSs.81(f) Shares deemed to be issued for no consideration in respect of: certification of builders for government contracts.parcel .41 31/12/12 CU'000 CU'000 Profit for the year from operations inthe the calculation of assigned Associates (1. 11.Discontinued operations 31/12/12 31/12/11 IAS associated Freehold land at revalued amount 31/12/12 31/12/12 31/12/11 of ordinary shares for the purpose of diluted earnings per share.2 steady (2011: 5%)carried per annum growth rate2 which is the projected growth rate for the 21. The cash flows beyond that five-year period have been extrapolated using aon . which carried out _ in profit hensive directly to profit Acquisitions for sale Closing statements of an entity): CU'OOO CU'OOO CU'OOO CU'OOO CU'OOO 5.757 The recoverable amount of this cash-generating unit isyear determined based a value in use which From continuing operations 84.623 -_ . at by reference to [market evidence of transaction prices for similar properties/other methods [describe]].130(a) Direct operating expenses fromamount investment property that generated Earnings used in the calculation of diluted earnings per fromby continuing 14.the planned .51( Others [describe] these markets.748 17.940 generate rental income during the year — weighted IAS generating unit by approximately CU 1 to 5 million.6uses 87.1. The discount rate in measuring to profit loss (see note 45) 1. or IAS 19.1) inflation throughout the budget period.1Allocation of goodwill to cash-generating units Liabilities 17. (g) Liabilities IAS 36. investment as the result of the less unexpected poor performance of a manufacturing plant.551) or (25. which has been recognised in profit or loss.763 assets in hedges relation to: generating units are as follows.613 „ 448 448 increased for at expected This reflects past experience..899) 106Unrecognised deductible temporary differences. no impairment losses recognised the reclassification [Describe] .next .70(c) IAS 12. The differences major classes of efficiency assets andimprovements. 4 i)The Group intends to dispose of a of freehold it period no longer utilises in the 12 months.654 38.5 percentage points the long-term average growth rate for the international electronic equipment diluted earnings per share from discontinued operations (8.126(a) 5.193 13.684 Balance at 1 January 2011 Owners of the Company 14.policy No impairment loss was recognised on reclassification of the land leisure as heldgoods consistent with Group's long-term to focus its activities the electronic equipment and other IFRS Leisure goods retail 10.654 Eliminated on reclassification as held for sale changes have had impact on results reported for 2012 and 2011.825 17.6 Total per differences share 131.

(e) Cost Balance at 1 January 2011 Accumulated amortisation and impairment Balance at 1 January 2011 IAS 36.1Significant intangible assets IAS 38.005) (11.400) (1.continued The following useful lives are used in the calculation of amortisation.Other intangible assets Capitalised development 5 years Patents Carrying amounts of: Trademarks Licenses 10-20 years 20 years 20 years IAS 38.122(b) The Group holds a patent for the manufacture of its Series Z electronic equipment. IAS 38. The carrying amount of the patent of CU2.331) .470) (4.Source Source International InternationalGAAP GAAP Holdings HoldingsLimited Limited Notes Notes to to the the consolidated consolidated financial financial statements for the statements year ended for 31 December the year ended 2012 31 .25 million (31 December 2011: CU2.130(b) IAS Balance at 31 December 2012 (2.continued December 2012 .118(a) 31/12/12 CU'OOO 31/12/11 CU'OOO 18.130(b) IAS IAS 36.456) (3.4 million) will be fully amortised in 15 years (31 December 2011: 16 years).118(c). 18.

and a deferred tax expense of CU32.37(c) IAS 28.000 (being the proceeds of CU1.953 1.000. reducing its continuing interest to 90%. (see note 31). Therefore. An amount of CU 179. was CU8. During the year. the Group has the power to appoint and remove the majority of the board of directors Subtwo Limited. 31/12/12 CU'000 Total assets Total liabilities Net assets Group's share of net assets of associates 42.054 3.41(a) IAS 28. power of those shares.000 arose on the gain realised in the current year.8 million). and consequently does not control more than half of the voting exchange of C Land. Subseven Limited Manufacture of leisure goods A Land 100% Nil i)Pursuant to a shareholder agreement.270 Year ended 31/12/11 CU'000 11.084 7. and it has less than 20% of the voting The proceeds on disposal of CU213. and hence the Summarised financial information in respect of the Group's associates is set out of below. incorporation and voting power Place of ownership Name of subsidiary Principal activity and operation held by theCU'OOO Group interest 31/12/12 31/12/11 incorporation and voting power 1. Subtwo Limited is controlled by the Group and is consolidated in these financial statements. A current tax expense of CU 143. the fair value of the Group's interest in C Plus Limited. the above disclosures should be modified to comply with the Subsix Limited Manufacture of leisure goods A Land 80% Nil additional local requirements. million (received in January 2013).402 Year ended 31/12/12 CU'000 Total revenue Total profit for the year Group's share of profits of associates Group's share of other comprehensive income 12. which is listed on the stock The Group owns 45% equity shares of Subtwo Limited. ii)The financial year end date of A Plus Limited is 31 October. the Company has the right to cast 37% of the votes at shareholder meetings of A Plus Limited. iii)Although the Group holds less than 20% of the equity shares of B Plus Limited. In December 2012.245 Details of the Group's subsidiaries at the end theinterest reporting as follows.Source Source Source International GAAP Holdings Limited International International GAAP GAAP Holdings Holdings Limited Limited Notes to the consolidated financial statements Notes Notes to to the the consolidated consolidated financial financial statements for the year ended 31 December 2012 statements for the year for ended the year 31 December ended 31 December 2012 continued 2012 continued . the in Group associates held a 40% interest in E Plus Limited and accounted for the investment as an associate.37(e) IAS 27. based on the contractual arrangements between the Group and other investors.41(e) IAS 28. and appropriate adjustments have been made for the effects of significant transactions between that date and 31 December 2012.932 (14.000 (being the Subfour Limited Manufacture ofinterest leisure goods B Land 70% 70% fair value less the carrying amount of the 10% retained). This transaction the recognition Place of has resulted in ownership interest Proportion of of a gain in profit or loss. When local laws or regulations require the list of company was incorporated.848) 28.024) Less: carrying amount of investment on the date of loss of significant Subone Umited Manufacture of electronic equipment A Land 90% 100% influence B Plus Limited (iii) Steel manufacturing A Land 17% 17% Gain 5 recognised 8 Subtwo Limited Manufacture of leisure goods A Land 45% 45% C Plus Limited (iv) Manufacture of electronic equipment C Land 45% 45% 1 The gain recognised in the current year comprises a realised profit of CU477. When local laws or regulations require the list of investments in associates to be disclosed. 2012 have been used.218) 25. and a change of reporting date is not permitted in M Land. IAS 28.continued 19.245 Proceeds of disposal 31/12/12 31/12/11 360 Subzero Manufacture A Land Nil 100% Plus: fairLimited value of investment retained (10%) of toys A Plus Limited (i)6(ii) Transport M Land 35% 35% (1. The difference of CU34.000 between the increase in the non-controlling interests and the consideration received has been credited toentity retained earnings (see 30).904 5. calculated as follows. This was the reporting date established when that The above information is considered as the best practice. As at iv)C Plus Limited is a listed in C Land with its note ordinary 31 December 2012.0 million (31 December 2011: CU7. Group hasreporting retainedperiod the remaining 10% interest as an available-for-sale Proportion of investment whose fair value at the date of disposal was CU360. Details of the Group's associates atThe the end of the are as follows. However. the above disclosures should be modified to comply with the applying the equity method of accounting. Group has control over the financial and operating policies of Subtwo Umited. The above information is considered and bicycles as the best practice.245 100% Subthree Limited Construction of residential properties A Land 100% D Plus Limited Transport R Land 35% 35% million less CU768.000 (being the proportionate power at shareholder meetings. the Group disposed of aof 30% inperiod E Plus are Limited to a third party for proceeds of CU1. the financial statements of A Plus Limited for the year ended 31 October additional local requirements.186 31/12/11 CU'000 38.37(a) IAS 27. the Group disposed of 10% of its interest in Subone Limited.37(b) Note: IFRSs do not require disclosures of a list of investments in subsidiaries in the consolidated financial statements.589 - .000 were received in cash.000 has been recognised in respect of the Note: IFRSs do not require disclosures of a list investments in associates in consolidated financial statements.000 carrying amount of the interest disposed of) and an unrealised profit of CU104.Investments the prior year. For the purposes of investments in subsidiaries to be disclosed.178 (12.Subsidiaries In20. shares traded on the stock exchange of C Land. the Group exercises significant influence by virtue of its contractual right to share of the carrying amount of the net assets of Subone Limited) has been transferred to non-controlling interests appoint two directors to the board of directors of that company.960 7.479 1. Subfive Limited Cthe Land 100% 100% Manufacture ofof electronic equipment portion of the profit recognised that is not taxable until the remaining interest is disposed of.

continued 21. City A.56 The following amounts are included in the Group's consolidated financial statements as a result of the proportionate consolidation of JV Electronics Limited.005 1. 31/12/12 CU'000 Current assets Non-current assets Current liabilities Non-current liabilities 1.787 - Year ended 31/12/11 CU'000 2.3% equity shareholding with equivalent voting power in JV Electronics Limited.993 936 4. There has been no change in the Group's ownership or voting interests in these joint ventures for the reported years.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 .521 Year ended 31/12/12 CU'000 Income Expenses Other comprehensive income 2. and b)a 33.124 1.763 - .800 7.005 4. IAS 31.56 IAS 31. a jointly controlled entity established in C Land.334 6.854 1.Joint ventures The Group has the following significant interests in joint ventures: a)a 25% share in the ownership of a property located in Central District.858 31/12/11 CU'000 2. The Group is entitled to a proportionate share of the rental income received and bears a proportionate share of the outgoings.

33(a). Available-for-sale investments carried at fair value Redeemable notes (iii) new customer. Other Currency Units.604 significant in creditis quality and the amounts (which include interest accrued after the receivable than 25. Previous write-downs have been reversed as a result of increased sales prices in months from the end of the reporting period. the Group uses an external credit scoring system to assess 2.015 amounts determined by reference to past default experience of the counterparty and an analysis of the counterparty's current financial position. the Group discounted trade receivables with an aggregate carrying amount a impaired impaired.655 request the Group to pay the unsettled balance.088 The interest rate inherent the leases isrecognised fixed at the date the entire term.10% per annum to (2011: 7.946 million and the carrying amount of the associated liability is CU0. Limits and scoring attributed 5.465 scoring attributable under the external credit scoring system used by the Group. retentions held customers for contract work amounted to CU75. the allowance for doubtful 31/12/1 31/12/12 31/12/11 31/12/1 26. Loans to related parties (v) 3.(C) IAS 1 IFRS 7. Advances received from customers for contract work amounted to CU 14.42D(e) IAS 1.539 20 21 minimum I Minimum lease payments lease 4 5 25.18(b) S 2(a) 1 1. it continues to recognise the full carrying amount of the receivables and has CU87.2Transfer of financial assets 60 days outstanding) are still considered recoverable.36(c). 128905 .Amounts financial and other due assets receivables from (to) customers under construction value in The notes are held debts with a single counterparty with an AA credit rating.528 is more16. amortised CU6. None of these assets had been past due or impaired at the end of the reporting period. the bank has the right to Non-current 10.14(a).Source Source Source Source Source International International GAAP GAAP Holdings Holdings Limited Limited International International International GAAP GAAP GAAP Holdings Holdings Holdings Limited Limited Limited Notes Notes to to the the consolidated consolidated financial financial Notes to the consolidated financial statements Notes Notes toto the the consolidated consolidated financial financial statements statements for for the the year year ended ended 31 31 December December statements statements the 31 year ended 31 December for the year for ended December 2012 . interest is charged at 2% per annum on the outstanding balance. All leases Others [describe] 54 20 denominated in under construction contracts _ _ 240 230 -from Held forcustomers trading derivatives that are not designated in hedge accounting 23.4 IAS 17.9).171 At 31 sales December 2012. (c).7 IFRS 7.0% per annum).476 220 Derivatives designated and effective as hedging instruments carried at fair Contracts in progress at the end of the reporting period and distribution of fuel products. IFRS 7. The Group holds no Movement in2014. Loans to other entities estimated at CU37.4 million) inbut respect securities is 7.5 million CU0. who also manages the day-to-day operations of that company.36(b) IFRS 7.638 recognised losses to date Less: progress billings lease receivables 1. Age of receivables that are past due but notof Current 8. The average effective reporting period for which thein Group has not ancontract allowance for for doubtful debtslease because there has not been a interest change rate contracted approximately 10.37(b) IFRS 7. (g) IFRS 7.405 (31 December Bills of exchange (i) has recognised an allowance for doubtful debts of 100% against all receivables over 120 days because historical 4.528 operations 16. The counterparties have a minimum A credit rating.61 . Further about these loans is set out in note 43.757 million to 6.658 Present value of 1.771 9.285 customer's to customers are reviewed twice a year.949 The finance lease receivables at the end the reporting period are neither past due nor of CU1.9million).7 IFRS 7.088 Unguaranteed residual values ofrepresent assets leased under leases the end the reporting period are There are no other customers who more than finance 5% of the totalat balance ofof trade receivables. The weighted average interest rate on these At the end of the reporting period. 34(c).34 million (2011: CU1. 198 188 16. a company involved in the refining 31/12/12 31/12/11 Trade receivables 17.continued continued 2012 for the . As the Group has not transferred the significant risks and rewards The cost of inventories recognised as an expense during the year in respect of continuing was 19.923 the reversal of such write-downs.47(b) IAS 2.637 3.905 4. certain markets.40( a) 1 IFRS 7. Of the trade receivables balance at the Loans end carried of theat year.37(b) 36(c) 17.9million (31 December 2011: CU91. recognised the cash received on the transfer as a secured borrowing (see note 32).4 Non-derivative financial assets as at information FVTPL Recognised and included indesignated the consolidated Operating lease receivable The Group entered into finance lease are financial statements as amounts due:arrangements for certain of its storage equipment.000).8(c) IAS IFRS 7.639 Held for trading non-derivative financial assets 1.86 million) are expected to be recovered after more than (days) ii)The debentures carry interest at 6% per annum payable monthly.052 During the year. (b) IFRS 7.8(b) 37 IFRS 7. the carrying the trade receivables that(2011: have been transferred haveof downs of inventory to net realisable value.continued 2012 2012 -.36(d) IAS IAS 2.919 7.517 1.4 24.604 relating to these trade receivables. Debentures (ii) been that receivables that are past due beyond 120 days are not recoverable. and mature in March 2013.36(e).37(d) IAS 1. Thereafter. (b).5% (31 December 2011: 11 %) per annum.16 IAS IFRS 7. 19.386 Interest rate swaps 284 177 830 717 (1.249 -to customers under construction assets relationships 14. The notes are redeemable at par continued 25. (f) 2.015 2011: nil). The directors of the Company do not consider that the Group is able to CU'000 CU'000 Current finance lease value Allowance for doubtful debts (798) (838) exercise significant influence over Rocket Corp Limited as the other 80% of the ordinary share capital is held Construction costs incurred plus recognised profits less receivables Non-current finance Foreign currency forward contracts by one shareholder. If the trade receivables are not paid at maturity. Trade receivables disclosed above include amounts (see below for aged analysis) that are past due at the end of the 3.29 million (31 December 2011: CU0. CU'OOO CU'000 CU'OOO CU'000 ended ended CU'000 CU'000 31/12/12 31/12/11 iv)The Group holds 20% of the ordinary share capital of Rocket Corp Limited.9 million) is due from Company A. (36) (15) 19.47(a) IFRS 7.37(a) IFRS IAS IFRS 7.639 payments The average credit period on sales of goods is 60 days.7 28. the Group also continues to hold a 10% interest in E Plus Limited. The bills have maturity dates ranging between 3 to 18 not been derecognised amounted CU0. 1.continued year ended 31 December 2012 iii)The Group holds listed redeemable notes that carry interest at 7% per annum. assets had been past due or impaired at the end of the reporting period.Other 27.36(c) 42D(a).000 (31 December from the date of the invoice.539 1. The Group 2011: CU69.86 million) in respect of writei)The Group holds bills of exchange that carry interest atof variable rate. No interest is charged on trade receivables for the first 60 days Held-to-maturity carried at by amortised cost At 31 December investments 2012.788 244 15. The cost of inventories recognised as an expense includes CU2. and amount has been reduced by CU0.000 5.245 average commercial rate of interest.(f).200 the potential 2.40(b). have a minimum B credit rating. a former Deferred proceeds ) 528 397) associate (see note 20). Allowances 500 experience has for doubtful debts are recognised against trade receivables between 60 days and 120 days based on estimated irrecoverable 5.000 (31 December 2011: CU42.7 and 40.toy manufacturing operations (see note 45) 960 2 215 0 v)The Group has provided several of its note key profit management personnel with short-term loans at rates comparable to theFinancial assets carried at fair value through 261Leasing arrangements partial disposal of E Plus Limited (see 20) or loss (FVTPL) 1.Trade 22.8(a) IAS IAS 17.7 IA 1. the Group's largest customer (see notes 6. 80% of the trade receivables that are neither past due nor impaired have the best credit 7.47(d) IFRS 7. 7.180 Before accepting any Shares (iv) credit quality and defines credit limits by customer. Average age 84 85 Inventories of CU1.9cost million (31 December 2011: CU5. None of these million.8(d) IAS IFRS 7.637 3. The average termcontracts of finance leases entered into is 4 years.313 (1. IFRS 7.37 17. The counterparties twelve months.47(f) IFRS 7. bank for cash proceeds of CU1 million.990 14.719 5.000).Finance lease receivables Year Year 2 1 collateral over this balance.1Trade receivables 1.

100 32. carry oneof vote per-share and carry a right to impact dividends.500 m 23.500 carry one vote per share but do dividends. IAS 1.775 capital CU'OOO CU'OOO 1.775 not carry a right to 29. to consulting present much of the detail in the notes (as we have done in these model financial statements) Issue of-electing shares for sen/ices 3 3 5 ensures that the primary financial statements are not cluttered by unnecessary detail.100. Any unconverted preference shares remaining after the end of the conversion period will remain as outstanding non-participating preference shares.000 will on in 28 September 2013. Further details of that the employee share option plan are provided in note 42.continued 284Share options granted under the Company's employee share option plan Note: Notes 28 to 31 below set out detailed descriptions and reconciliations for each class of share capital and each 28.603) _ detailed supporting notes.100 100 - (6) 1 (5) 1.100 100 - Share 1.000 fully paid 10% convertible non-participating preference shares (31 December 2011: 1.000) 2.000the willlevel expire on 30 presented March 2013 andstatement 60.000) 1. 2.79.603) (5. 45. Balance at 1 January 2011 20.200 1.439 1.500 m CU'OOO 31/12/12 1.200. entities will need to ensure that the following requirements are met: Balance at 31 December 2012 14.100 1. but it does result in(10.439 48. (ii) each item of other comprehensive The fair value of shares issued for consulting services was determined by reference to theincome. the amount tax relating to each item of other comprehensive income should be disclosed (in the IAS 1.1) preference shares issued by the Company have been 314 314 The redeemable cumulative classified as liabilities (see note 34).106A.000 ordinary shares of the Company.819 1.195 1. Convertible non-participating preference shares have no right to share in any surplus assets or profits and no voting rights.672 1.3 December 2011: 20. which have a par value CU1.130 20.005 _ 25.48 each such component of (i) profit or loss.100 1.000 were '000 CU'OOO CU'OOO either in the of changes in equity or in the notes.106 IAS 1.1Fully paid ordinary shares component of equity.775 14.000 fully paid ordinary shares CU1.844 14. detailed reconciliations are required for of each component equity separately disclosing the on IFRS 2. as required by IAS 1.500.775 CU'000 17. The shares bought backof in income the current year were cancelled immediately.130 25. Share options granted under the Company's employee share option plan carry no rights to dividends and no voting „ Movements [describe] IAS 1 also allows some of the details regarding items of other comprehensive income (income tax and rights.797 Share 1.667 the Group has elected to present the analysis of other comprehensive income in the notes. executives and senior employees held and options over 196. on For29 the purposes of the preparation of this model. allows an analysis of other comprehensive income by item for each component of equity to presented executives and senior employees held options over 290.844. and 28.2Partly paid ordinary shares reclassification adjustments should be presented separately from the related item of other comprehensive Number Share Share income (in the statement of profit or loss and other comprehensive income or in the notes).130.000 ordinary shares of the Company.469 CU'OOO 31/12/11_ CU'000 _ 2.620 32.130 20.844 14. Share buy-back costs (277) „ Income tax relating to share buy-back costs 83 Whichever presentation is selected. Entities share will determine the most appropriate presentation for their Issue ofother shares under the Company's employee circumstances option plan (see note 42. At 31 December 2011.667 reclassification adjustments) may be disclosed in the notes rather than in the statement of profit or loss and 285Redeemable cumulative preference shares comprehensive income. IAS 1. which have a par value of 14.79(a) statement of profit or loss and other comprehensive income or in the notes). notes). due to expire on 30statement March 2012 and 150. of be which 140. which have a par value of CU1. are entitled to receive a discretionary 10% preference dividend before any dividends are declared to the ordinary shareholders. market and rate(Hi) for similar transactions with owners in their capacity as owners (in the statement of changes in equity or in the consulting services.premium IAS 1 of which 136.775 premium IAS IAS 1. Number IAS 1 permits some Share flexibility Share At 31 December 2012.000 were due to expire September 2012.672 _ 2. of shares capital premium '000 Balance at 1 January 2011 Movements [describe] Share capital Balance at 31 December 2011 Share premium Movements [describe] Issued capital comprises: Balance at 3 1 December 2012 Partly paid ordinary shares.853) very Share buy-back (5. of shares capital regarding of detail in the ofexpire changes equity and these supporting notes.Source Source InternationalGAAP GAAPHoldings HoldingsLimited Limited International Notes to the consolidated financial Notes to the consolidated financial statements for the year ended 31 December statements for the year ended 31 December 2012 .130 25.625 detailed reconciliations are required for each class of share capital (in the statement of changes in equity or in the notes).79(a) 1.continued 2012 .667 48. The convertible nonparticipating preference shares can be converted into ordinary shares on a one-for-one basis at the option of the holder from 1 November 2015 to 31 October 2018.79(a) Convertible non-participating preference shares (3128.79(a) IAS 1.000 partly paid ordinary shares (31 December 2011: 2. Balance at 31 December 2011 20.000) Balance at 1 January 2011 Movements [describe] Balance at 31 December 2011 Issue of shares Share issue costs Income tax relating to share issue costs Balance at 31 December 2012 Number of shares '000 1.500.79(a) Fully paid ordinary shares. .1.79(a) IAS 1.200 Convertible non-participating preference shares.

763 Deferred tax liability arising on revaluation (493) Balance at end of year 592 of A Land to iv)On 17 December 2011. the directors propose that a dividend of 26.8(f) IAS 1.2% 110 and Balance at beginning of year 338 is Balance not an item of other comprehensive income.4 Equity-settled employee benefits reserve Balance of at issue end of year 186 225 Proceeds 4.11 million). Income tax related to amounts transferred to initial carrying amount Equity component 834 their 55.Retained earnings and dividends on equity instruments 293Investments revaluation reserve 29.237 3.90 IAS (d) IAS 1. The effective interest rate of the liability 31/12/11 element 31/12/12 instruments to “option profit orpremium loss disposal ofreclassified foreign operations 46 The investments revaluation reserve represents the cumulative gains and losses arising on the revaluation of availableon initial at recognition is 8.635) Income tax relating to loss on hedge of the net assets of foreign 4 -converted. The cumulative gain or loss arising on changes in fair value i)Bills of exchange with a variable interest rate were issued in 2005.5% CU denominated convertible notes with an Gain/(loss) arising on in fair value of hedging instruments Income tax relating to changes gains arising on translating the net assets CU'000 _ Others [describe] aggregate principal amount of CU4.654 of available-for-sale financial assets Interest rate swaps 227 357 „ 34 have not been of foreign operations (12) Conversion may occur at any time between 13 July 2013 and 12 September 2015.106(d) IAS IAS 1.e.999 entered into for cash flow hedges of foreign operations (22) (36) Balance at beginning of year Profit attributable toloss on sale 23.058 conversion price of CU1.00. The weighted average effective earnings.90 1. The equity element in operations ended is presented ended Cumulative arising two on changes in fair valueor ofloss hedging Gain/loss on (gain)/loss hedging instruments reclassified to profit on [describe] equity under the heading of on convertible notes”.2).106(b). being movements in the inter-bank rate in A Land.6Foreign currency translation reserve 322Breach of loan agreement 2012 .79(b) IAS IAS 1.or Balance of year 807 807 loss at beginning Currency swaps when (describe) those assets have been disposed of or are determined to be Others ~ 110. iii)Fixed rate loans with a finance company with remaining maturity periods not exceeding 3 years (31 December 2011: during the year are included in the following line items: ended ended CU'000 CU'000 Balance at beginning of year average effective interest rate on the loans is 8. the portion of the properties revaluation reserve that relates to that asset is transferred directly to retained ) vi)Secured by aof mortgage over the Group's freehold land in and buildings (see note 15). they will be redeemed on 13 September 2015 at CU1 each.23(c) IFRS 7.242 movements in the hedged risk.2% per annum is charged on the outstanding employees under itsto employee share of option plan. In May 2011. The current weighted average effective interest of 29. consistent with the Group's accounting policy.000 will expire on 17 September Distributions from the properties revaluation resen/e can be made they are in accordance with the vii)Secured by a charge over certain of the Group's trade receivables (see where note 25. The directors do not currently intend to make any distribution from the properties revaluation reserve.107 IAS IAS 1.515 million) was paid to holders Yearof fully (4. the dividend paid was 31.144 The Properties cash flow hedging reserve represents the cumulative effective portion of gains orof losses arising on changes fair _ reserve (in respect of both the net assets of“borrowings" foreign operations hedges foreign operations) are in 29. there is no the outstanding share options had vested by the acquisition date of Subsix Limited.79(b) IAS 1.1 cents per share (total dividend CU6.7 this Option dividend premium will not on have convertible any tax notes consequences for the Group. When revalued land or buildings are (9 value.9 94._ quarterly up until the notes are converted or redeemed.000 will expire on 12 March 2014 and 3.loan The option premium on convertible notes represents component ofthe the CU4. IFRS 7. The period.18 IAS 1.reserve the Group was late in paying interest for the first quarter on one of its 31/12/12 loans CU'000 with a carrying CU'000 29. Interest expenses Balance at end of year 1. comprehensive income accumulated in the foreign currency translation reserve.00 million.23(d) 7.824 Forward foreign exchange contracts 209 (41) 4. Convertible Balance at beginning of year 225 140 31/12/12 31/12/1 Balance atassets beginning of year 278 258 Foreign currency translation 186 225 financial 94 81 Exchange differences arising on translating the foreign operations 75 121 CU'000 1 SB Option premium on convertible notes 592 Income tax relating to gain arising on revaluation of On 13 September 2012.20(a) IAS 1.106A IAS IAS 1. Interest of 5.20(a) 1. If the notes „ of interest in Subone Limited (see note 19) Cumulative loss reclassified to profit or loss on impairment 29. Items other comprehensive income included the properties revaluation reserve will not be reclassified i)As subsequently at interest 31 December rate to profit on 2012. The Group hedges a portion of the loans for interest rate risk via an interest rate swap CU'000 CU'000 Increase arising on revaluation of properties 1.28 IAS 7.79(b) IAS 1. Items included revenue in option(see premium on convertible notes benefit derived from the interest-free loan (see and is recognised as deferred note 1.2%.500 807 807 payable was repaid in full 31/12/12 31/12/11 Year Year 31/12/12 31/12/11 Retained earnings 110.79(b) IFRS 7. Related income tax (242) Reversals of impairment losses CU'OOO CU'OOO Share of profit for the year 4.314 ended paid ordinary shares.5 million 5.0% 8. the fair value of the loan is estimated at Finance costs (120) (86) Additional non-controlling interests arising on disposal the of interest in Others [describe] .77(f) IAS 36.90 IAS 1.407 The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.316 20. the Company issued 4. items included in theof qeneral reserve will be reclassified atthat end of year 317 278 instruments are designated as hedging instruments for hedges net investments innot foreign operations are Interest paid (82) In subsequently respect of the to current year.904 94.9 impaired.000 were recognised on this loan 2012 and CU202.5Cash hedging Year Year Year Year amount of CU5.000 ordinary shares of Subsix Limited.500 perpetual notes with a coupon rate of 6% per annum were issued on 27 August 2012 at CU2. currency translation reserve. Income tax related to amounts reclassified to profit or loss 04 37 99 26 Movements [describe] 29. 31/12/12 31/12/11 of hedged item 77 60 There is of Dividends 10 centsto per share were paid on convertible non-participating preference shares during the functional currencies the Group's presentation currency (i.61 million. 114 reserve will not be reclassified subsequently toin profit or loss.13 IAS IAS 1.000 represents the restriction on by the payment of 'bonus shares' out ofare the revaluation resen/e.Source Source Source Source Source Source Source International International GAAP GAAP Holdings Holdings Limited Limited International GAAP Holdings Limited International GAAP Holdings Limited International International GAAP GAAP Holdings Holdings Limited Limited International GAAP Holdings Limited Notes to the consolidated financial statements Notes Notes to to the the consolidated consolidated financial financial Notes to the consolidated financial Notes Notes to to the the consolidated consolidated financial financial for the year ended 31 December 2012 statements statements for for the the year year ended ended 31 31 December December statements for the year ended 31 December statements statements for for the the year year ended ended 31 31 December December continued 2012 2012 -continued continued Notes to the consolidated financial 2012 continued 2012 2012 continued continued 32. The lender did not request accelerated repayment of the Properties revaluation 1.116) Year Forward foreign contracts (257) (201) Exchange differences relating to the translation of the results and net assets of the Group's foreign operations fromended 40.198 41).64 cents per share (total dividend CU6.5 million principal Balance at end of year 24. The proposed dividend is payable to all shareholders 32. The weighted (31 December 2011: 31/12/12 31/12/11 Year Year Balance at beginning of year 8. to any amounts transferred to retained profits. Each note entitles the holder to convert to ordinary shares at a available-for-sale financial assets (28) (24) 94.905 million.106A IAS 1.2.31 cents per share be paid to shareholders 25 Arising on share-based payments 206 338 included profit loss. not be reclassified subsequently to changes profit or loss.106(d) IFRS IAS 1.will be paid (6.77(f) 31/12/12 31/12/11 31/12/11 During theflow current year. distributions out of the reserve is restricted by38. Cumulative (gain)/loss reclassified to profit or 73.106(d) IFRS IFRS IAS 7.000 betweenequity the gross proceeds(conversion and the fairrights) value of is the Other expenses (3) Subone Limited (see note 19) 179 „5. .106(d) IAS IAS 1.continued IAS 1. The total estimated dividend to be paid is CU3. The borrowings aproperties mix of variable andwith fixed interest rate debt with repayment market-based measure of these share options measured in accordance IFRS 2 at the acquisition date. 544 338 arrangements on the Register of Members on 21 April 2013.950 Transferred to initial carrying amount of hedged items Balance at end of year 807 807 Liability component at the date of issue On 23 May 2012.000 will be recognised in 2013.Non-controlling interests The above equity-settled employee benefits reserve relates to share options granted by the Company to Year its Year adjustment to ended ended the non-financial hedged item.201 Non-controlling interest relating to outstanding vested share options held Income tax expense 86 CU188. the Group received an interest-free loan of CU3 million from the government _ Revenue Reversal of deferred tax liability on revaluation Non-controlling interests the acquisition of loan is repayable in full at the end of that two-year finance staff trainingarising over a two-year period.999 a week later.5% per annum Payment of dividends Share buy-back Related income of available-for-sale financial assets operations Income tax related to gains/losses recognised inof other Gain/loss reclassified to profit or loss on disposal foreign operations (555) (166) . net of amounts reclassified CU'000 to profit disposal of swaps foreign (15) .12 million (2011: CU0.1 General reserve Currency swaps . bank executives loans is and 8.106(d) IAS IAS IFRS 7. These restrictions do not apply periods not exceeding 5 years (see note Further details of the employee share option plan are provided in note 42.005 31/12/11 17. Currency Units) are recognised directly in Liability component at the date of issue 4. CU5. Amounts may also be These share options were issued by Subsix Limited before it was acquired by the Group in the current year.126(c) IAS IAS 1. including the additional interest and penalty. the terms of the Company's constitution.116 Others [describe] CU'000 CU'000 other no policy of10 regular transfer. Further information about share-based payments to employees Cumulative (gains)/ losses arising on in fair value of hedging instruments reclassified from equity into profit or 31/12/12 31/12/11 Year Year CU'000 CU'000 loss is set out in note 42. The delay arose because of a temporary lack of funds on the date when CU'000 interest was CU'000 ended ended ended ended General due to a technical problem on settlement.2% per annum). the payment of cash viii)Secured the assets leased. of which 2. The payment of hedging instruments entered into for cash flow hedges.000 2.0% 8. Issue costs of CU0.8% per annum). Other income Transferred to retained earnings (3) Subsix Limited (see note 44) 127 Using prevailing market interest rates for an equivalent loan of 7.7 1. Management has reviewed the Group's settlement procedures to Investments revaluation 593 527 31/12/12 31/12/11 Balance at beginning of year 527 470 Year Year ensure that such circumstances do not recur.2). Exchange differences previously accumulated in the foreign currency in the or foreign May 2013. statements for the year ended 31 December 30.2 revaluation reserve included as a liability in these consolidated financial statements. As amounting the general reserve is created by a transfer from oneGains component of equity to another year (2011: cents perand share) to a total dividend of CU0.8% per annum (31 December 2011: 6.106(b). requirements of the Company's constitution. and losses on hedging Interest charged calculated at an effective interest rate of 8.5 million.479 Year Year comprehensive income (131) (95) Balance at end of year 593 527 Income from tax related to gain/loss reclassified disposal of foreign 51 ) Transfer properties revaluation reserve on Others The convertible notes contain components: liability and equity elements.106A IFRS 7. (d) IAS 1.106(d) 7.376 Loss on instruments designated of the net assets owners ofhedging the Company Difference arising in onhedges disposal 27.23(e) IFRS IAS 1.5 millionCU2. reclassified to profit or loss only when the hedged transaction affects the profit or loss. The difference of CU390.005 The properties revaluation reserve arises on the revaluation of land and buildings. or included as a basis 31. ii)Amounts repayable related parties the Group.82A IFRS 7.30% senior per employees annum (31 of December Subsix Limited 2011: 8. _ Others [describe] of Subsix Limited (i) by the employees 5v)2.7 IFRS 7. over 5. All of effectively distributed out of the properties revaluation reserve as part of a share buy-back. Balance Forward foreign end of year exchange contracts (3) forCU'000 CU'000 Income tax related to gain/loss on hedging instruments reclassified on Interest rate (120) (86) sale financial assetsoperation that have been recognised in other comprehensive income. the or loss.643 ended exchanging fixed rate interest for rate interest. of Year Year the hedging instruments that are recognised and accumulated under the heading of cash flow hedging reserve will be rate on the bills is 6. Equity-settled employee benefits 544 338 Items that may be reclassified subsequently to profit or loss: CU'OOO CU'OOO ended ended Cash flow hedging 317 278 Net gain arisingnotes on revaluation of available-for-sale 33. The outstanding balance is adjusted for fair ended value Recognition of option premium on issue ofvariable convertible notes 834 Impairment losses „„ Balance at beginning of year 31/12/12 20.5% convertible notes issued during the year note 33). aexchange dividend of 32. the Corporations Act and relevant case law. Interest of 8.137(a) IAS 1.79(b) IAS IAS 16.595 million were incurred.369 million).32% held options per annum).201 CU'000 CU'000 ended ended CU'000 CU'000 loan and the terms of the loan were not changed.23(d) IAS 16.1.[describe] This dividend is subject to approval by shareholders at the Annual General Meeting and has not been Others translation Liability component attranslating 31 December 2012 (included in (note and 32)) 4.20(a) 32. Items included in-equity-settled employee benefits reserve will ended ended 31/12/12 31/12/11 loan balances (31 December 2011: 8.201 51 4 years).1 Summary of borrowing value reclassified to profit Balance or loss at end on of the year disposal of the foreign operation.198 1. The interest payment outstanding of CU107. However. tax (6. sold.91 IAS 10.15% per annum 1.10% per annum).79(b) 1.79(b) 1. Generally.2% per annum.Reserves (net of income tax) Borrowings 29. 2014.

84(c) IAS 37.Source Source International GAAP Holdings Limited International GAAP Holdings Limited Notes to the consolidated financial statements Notes Notes to to the the consolidated consolidated financial financial statements for the year for ended December 2012 statements the 31 year ended 31 December for the year ended 31 December 2012 .84(a) IFRS 15. 2012 contingent liability of CU45. The estimate has been made on the basis of historical warranty trends and may vary as a result of new FVTPL eliminates the accounting mismatch arising on measuring the liability at amortised cost and measuring the materials. In addition.875 51 16.continued 34. including estimated future sub-lease revenue.84(e) IFRS 7. The reference shares have fixed interest payments and mature 11 May 2014. theper Group recognised an additional (i) 3. Other financial liabilities 35.7 Held for trading derivatives not designated in hedge Cash-settled share-based accounting relationships (ii) payments Others [describe] Held for trading non-derivative financial liabilities 21. on 3 measuring the provision for rectification work. unsecured borrowings of the Group andcurrent are designated as at FVTPL (see below). altered manufacturing processes or other events affecting product quality.2013.B64(j) IAS 37.84(b) IAS 37.118 million. cumulative preference shares. The designation of preference shares as at legislation. No interest is charged on the tradepayables for the first 60 days from the date of the invoice.1) [describe] Derivatives that are designated and effective as hedging instruments carried affair value Current Foreign Currentcurrency forward contracts Interest rate swaps Non-current Non-current Currency swaps Others [describe] IFRS 7.195 95 2. There has been no change in the fair value of the contingent consideration since the acquisition date.2). Current 116 18 Non-current 15.Provisions 36.426 365 31/12/1 1 CU'OO O Employee benefits (i) Lease incentives (note Financial guarantee contracts OtherOthers provisions (see below) 48. .000 in respect of employees' compensation claims outstanding which was settled in per February The decrease in the carrying amount ofat the provision for the current year at an issue price of CU5 share.84(d) IAS 37. The are shares results from benefits being paid in the year.426 365 3. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms. the Group has designated these preference financial atFVTPL shares as liabilities CU1.Other liabilities 31/12/12 31/12/12 31/12/12 CU'000 CU'OOO CU'000 1. interest is charged at 2% per annum on the 15.8(e) Other 37. be earned on the lease.51(b) IAS 37.117 18 outstanding balance.001 - 37.220 _ - IAS Others (contingent (iii) 75 The average credit consideration) period on purchases of certain goods from B Land is 4 months. Anticipated expenditure for 2013 is liabilities in their entirety. The shares are redeemable on 31 May 2014 CU5 per share. iv)The provision for onerous lease contracts represents the present value of the future lease payments that the Group Dividends of CU613.038 5 5.000 redeemable preference withof a coupon rate of 7% were issued on June annum 1 against that company.316 270 5. derivative at FVTPL. and for 2014 is CU1.388 360 18 1. the Group has entered into a pay-floating receive-fixed iii)The provision for warranty claims represents the present value of the directors' best estimate of the future outflow of interest rate swap.000 representing the estimated fair value of the contingent consideration relating to the acquisition of Subsix Limited (see note 44.926 73 31/12/11 31/12/1 1 CU'000 CU'OOO CU'000 4. The swap's notional principal is CU15 million and matches the principal of the cumulative economic benefits that will be required under the Group's obligations for warranties under local sale of goods redeemable preference shares. The swap matures on 31 May 2014. where applicable. Thereafter. On the shares acquisition Subsix Limited. Trade and other provisions payables Financial liabilities carried at fair value through profit or loss (FVTPL) Non-derivative financial liabilities designated as at FVTPL initial recognition (i) Trade on payables IAS 37.000 (2011: nil) were paid on redeemable cumulative preference shares and are included in is presently obligated to make under non-cancellable onerous operating lease contracts.294 5.3 14.650 270 92 31/12/1 2 CU'OO O 14. because the effect is not material.117 18 i)The provision for employee benefits represents annual leave and vested long service leave entitlements accrued and compensation claims madecumulative by employees.650 90 3. (b) IAS To reduce the fair value risk of changing interest rates.84(a) IFRS 2. 3.000.continued continued 2012 . These redeemable cumulative preference shares do not contain any equity component are classified financial ii)The provision for rectification work relates to the estimated cost of work agreed to be carried out for the as rectification and of goods supplied to one of the Group's major customers (see note 13. The estimate may vary as a result of changes in the utilisation the leased premises and sub-lease where applicable.231 270 5. iii)Other financial liabilities include CU75.334 270 24 4.85(a).6). The ii)A pay-floating receive-fixed interest rateof swap economically hedges fair valuearrangements interest rate risk of redeemable unexpired terms of the leases range from 3 to 5 years. less revenue expected to profit or loss in the “other gains and losses” line item. These amounts have not been discounted for the purposes of as permitted by IAS 39.356 87 180 5 2.94 million.

continued Year Year expenses.33. Actuarial gains/(losses) 220 (91) (20) The employees of the Group's subsidiary in B Land are members of a state-managed retirement benefit plan operated as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than 3.861 2.40(a) IAS 19.574 1.448 Changes in fair value attributable changes in credit risk recognised during the Present value of funded defined benefit obligation 6.120A(g) IAS 19. iii)This isLoans mainly attributable the exposure outstanding Currency C payables at the end of of the reporting market factors was to calculated using benchmark interest yield curves as at the end the reporting period 40. IAS 40(b) 19.2. interest rate risk and other price risk).6. return plan The most recent actuarial valuations of plan assets and the present valueExpected of the defined benefit obligation were carried 40. made to the results and financial position.7 below).31(b) IAS IAS 19. As at 31 December 2012. exposures todisposal exchange The Group's sensitivity to foreign currency has decreased during the current year mainly due to the of at 6.continued year ended 31 December continued statements statements for for the the year year ended ended 31 31 December December statements for the year ended 31 December statements for the year ended 31 December Year Year 2012 continued 2012 2012 -continued continued 2012 continued 2012 continued Notes to the consolidated financial ended [The expense for the year isvalue included in the employee expense in profit or loss.010 and markets.31(e) IFRS 7.954 The capital structure of the Group consists of net debt (borrowings as detailed in notes 32. 33 and 34 offset by cash Historical CU'OOO CU'OOO Assets acquired in a business combination minimum Minimum lease payments lease The total expense recognised in profit or loss of CU160.202 4. The Group's overall Contributions from the employer 38. Carrying amount of loans and receivables designated as at FVTPL CU'000 CU'000 and by obtaining lender quotes for borrowings of similar maturity to estimate credit risk margin.000 controlling as detailed in specified notes 28 in to the 31).259 which hasbank resulted in lower Currency B denominated trade receivables and trade payables.6 Foreign currency risk management discounting future cash flows using quoted benchmark interest yield curves as at the end of the reporting period in cash flow hedges. in analysts' Past service cost with lower sales volumes in the last quarter of the financial year. The 14 (iii) Fair value of reimbursement rights recognised as an asset -(15.252 million) and property occupied by a 6. The Group also enters into forward foreign that monitors risks and policies implemented to mitigate risk exposures. risk. for speculative purposes.The amounts (2011: CU8.payable and bank balances) and equity of the Group (comprising issued capital. / Of the expense ended for the year. For a 10% of the to CU against the relevant strategy remains unchanged from 2011.5Value at Risk (VaR) analysis 2012 .000) represents contributions VaR Currency B impact Currency C „ Present value of unfunded defined benefit obligation . The longer time frame of The gearing at end of the reporting period was asand follows. and the expected rate of proportion return of at its the end of the period for each The funded defined benefit plans for qualifying employees subsidiaries inreporting A Land.568 35. The Group has options to purchase the equipment for a nominal at control the end of the lease personnel and represents management's assessment of the reasonably possible change in and foreign exchange rates. resulting in a reduction _ 171.2 Finance lease liabilities 31/12/12 31/12/11 Fair value of plan assets (4.7 below.38% (see below) was at the between lower end of the target range. IFRS 34 7.113 note 40.23Financial liabilities designated as atstatement FVTPL The amount included in by the consolidated of financial position arising from theof entity's obligation in respect of will be dictated the circumstances of the entity. Group manages its on capital toto ensure that entities in the Group will be able to continue as going concerns while Exchange differences foreign plans 89 1. The Group expects to make a contribution of CU0. retained earnings and to nonAssets distributed on settlements payments (20) -„ these plansinterests by the Group at rates rules of the plans. the committee considers the cost of capital and472 the risks associated with each class Profit loss 579 (i) 19 . credit risk and liquidity risk.10(a) IFRS IFRS 7.72 million (2011: CU0. an independent body ii)Equity includes all capital and reserves of the Group that are managed as capital. The Group enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk. increase and decrease in the CU against 31/12/12 the relevant 31/12/11 confidence level.482 2.326) approaches. and the balances below would be value negative. The present value of the defined obligation fair value of cumulative preference shares (CU125. benefit obligation. period. Movements in the present of the plan assets in benefits the current year were as follows.954 1. and has returned to a i)This is mainly attributable to the exposure outstanding on Currency B receivables and payables in the Group at the retirement age of 65.321 4. ended ended The principal assumptions used for the purposes of theof actuarial valuations were as follows. Fellow of the Institute of Actuaries of A Land.5% to 5.954impact 1.33% The actual return on plan assets was CU0.808 VaR methodologies employed to or calculate daily risk numbers include the historical and variance-covariance by the government of B Land.808 6. the use of financial derivatives noninvestment hedging would be a decrease CUcredit 13. sensitivity Year Year Credit Method.326) (4. sensitivity analysis evaluates the in ii)This is as a result of theGroup's changes in fair value of derivative instruments designated as hedging instruments in cash out at 31 December 2012 by Mr. as a fair value of CU0. Closing fair value of plan assets 4. (2011: 5 years).297 7.36% 21. reserves. In addition.202) (4. 40. and the investment of excess liquidity.120A(n) IFRS 7. are as follows. IFRS 7. management rate(i) fluctuations Exchange rate exposures are managed within approved policy parameters utilising Currency B investments and the objectives reduction in Currency B sales and purchases in the last quarter of the financial year Debt 14 89 forward foreign exchange contracts. benefits. risks include market The overall expected rate of return is a weighted of exposure the returns of These the various categories of plan 31.000). the contributions payable by the Group are terms. (125) the employees are entitled to retirement benefits varying 40% and 45% of final salary on attainment ofmore a at 31 December 2012 of 18. including: Fair value of plan assets (4. Basis adjustments are to the carrying amounts of non-financial CU'000 as CU'000 CU'000 CU'000 CU'000 40.482~ Others [describe] .671 (31 December subsidiary of International GAAP Holdings Limited with Benefits paid (956) (1. The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates (see Present value of defined benefit obligation 6. However.808 55. IAS 19.Retirement benefit plans CU412.052 predictions of the market for the asset over the life of the related obligation. Cash and balances (including cash and bank balances in the a business. and the related current service cost past service cost.Source Source Source Source Source Source IAS IAS IFRS 19. Ho.629 exposure atreporting the end of the reporting period does notaverage reflect the during the year.33(c) IFRS 7. measured using the Projected Unit preference shares due to change in market risk factors 105. flow hedges and net investment hedges. sensitivity analysis includes external loans Interest rates underlying all obligations underthe finance leases are fixed atThe respective contract dates ranging from probability that the daily loss will not exceed reported VaR. The matters disclosed 31/12/11 The VaR measure estimates the potential loss in pre-taxation profit over a given holding period for a specified Financial assets CU'000 CU'000 40.023 typical level of 23% after the end of the reporting period.120A(d) IAS 17.202) (4. The Group does not enter into or trade financial i)Debt is defined as long. Contributions from planto participants monthly basis to determine potential future exposure.1 and receivables desianated asto at FVTPL analysis forrisk foreign currency risk are set out in note 40. 14.120A(q) Market risk exposures are measured using value-at-risk (VaR) supplemented by sensitivity analysis.134.1Gearing ratio assets i)The change in fair value attributable to change incurrency credit risk is calculated as thewere difference between total change Movements in the present value the defined benefit in the current year as follows. described in notes 32.204 Opening defined benefit obligation 5. IAS IFRS (l) 19. A positive number below indicates an increase in profit or equity year (i) SB maximising the return to stakeholders through the optimisation of the debt and equity balance.Obligations currency instruments under sensitivity finance leases 31/12/12 40. The Group's Corporate Treasury function provides services to co-ordinates access to domestic and 738 (23.2 Credit derivatives over loans and receivables desianated atmade FVTPL Opening hedged items when the anticipated sale or purchase transaction takes place.481) is reviewed by the internal auditors on a continuous basis.000 (2011: CU9.120A(I) 7.418) (3. Fair value of end of the reporting period. Others It is the policy of the Group to enter intois forward foreign exchange contracts to cover specific foreign currency 5.11 IAS 19.6. currency. assets held.469 1. While VaR captures the daily exposure to and interest rate risk. The assets of the plans are held separately from those of the Group in funds amount under of trustees.2.120A(k) IFRS 7. 18. Under the plans.481) 1.6 below and for interest rate risk in note 40. Liabilities Assets Currency B receivables at the end of the reporting period. The subsidiary is required to contribute a specified percentage of payroll costs to the the functional currency of the lender the borrower.91 million) to the defined benefit plans during There has been noyear. Experience adjustments plan liabilities 230 and interest rate swaps to on mitigate the risk of rising interest rates.1 Defined plans 38.156 5. consequently. Currency B denominated end of the period are as follows. CU'000 CU'000 CU'000 CU'000 □ abilities assumed in a business combination written principles on instruments foreign exchange risk.298) •forward foreign exchange contracts to hedge the exchange rate risk arising on the export of electronic equipment to Deficit 1.1.000) TheGroup major categories of plan assets. exchange contracts to manage the risk associated with 31/12/12 anticipated sales and purchase transactions out to 6 months 31/12/11 31/12/1 31/12/09 31/12/0 40. Risks can be measured consistently across all markets and products. plan is to make specified contributions.354 million).120A(d) IFRS 7.875 Net actuarial gains (losses) not recognised 1. change to the Group's exposure to market risks or the manner in which these risks are managed the next financial and measured.120A(b) IFRS 7. Compliance with policies and limits net effect on equity because there would be an offset in the currency translation of the foreign operation.G.95 million (2011: CU0.42 IAS IAS 19. Group has operates athrough target gearing ratio of 20% -Held 25% determined as the of net debt gearing ratio Fair value profit or loss for trading Equity 96 122 (ii) to equity. Net liability arising from benefit obligation 2.095 741 were paid subsequent to to the end of the reporting period.22. payments and receipts within 70% to 80% of the exposure generated. Current sen/ice cost 1. Benefits paid the Present (956) of 1. The Opening fair value of plan assets 4. Cumulative changes in fair value attributable to changes in credit Deficit 1. including derivative instruments.1 Capital by the management amount of forfeited contributions. sale) monitors and manages the financial risks relating to the operations of the Group In management's opinion. by the significance judgements and estimates The following table details the Group's sensitivity toindividual a 10% defined.135 IFRS 7. thereand would be no The plan assets include shares of International GAAP Holdings Limited with a fair value of CU0.] 31/12/12 The Group is contribution mainly exposed to the currency of B Land and the currency of C Land.38 million 75 Exchange differences onordinary foreign plans 31exposure derivative financial instruments.156 The history of experience adjustments as follows. The directors' assessment of the expected returns is based on historical return trends and sales are seasonal.62 million (31 December 2011: CU0. of F.156 5. foreign currencies.778) Interest cost 164 137 disposal international group financial held formarkets. The average lease term is into 5 years its defined benefit plans is as follows.33 •forward foreign exchange contracts to hedge the exchange 220 rate risk arising on translation of the Group's investment Experience adjustments on plan assets (91) 156 148 89 163 42 6 8 in a foreign operation. risk measures can be Cash employees and balances (including cash andvesting bank balances in a by disposal group heldto for Where leave the plans prior to full of the contributions.120A(c) IAS 19. which has B Currency as its functional currency. shares 31/12/12 31/12/11 holding credit risk margin constant.120A(f) 17. The Corporate Treasury function reports quarterly to the Group's risk management committee.000 (2011: CU148.326 4. CU'000 CU'000 translation at the period end for a 10% change in foreign currency rates.808 Closing defined benefit obligation 6.120A(j).75% to 6%) per annum.326 risk 0) Difference between carrying amount and contractual amount CU'000 CU'000 CU'000 CU'000 Financial liabilities Past service cost not yet recognised (188) (200) The Group's management committee reviews the capital structure of the Group on a semi-annual basis.120A(m) 19. Subfour Limited.896 167. analysis is unrepresentative of the inherent foreign because The carryingfrom amounts of the the sensitivity Group's foreign currency denominated monetary assets andexchange monetary liabilities at the Contributions plan participants . 17 The 19 (iv) -cumulative preference shares at(FVTPL) fair value (note 34) Others [describe] category.000 (2011: CU402.of capital.46 19.010) (4. Thebank Group's obligations under finance leases are secured the lessors' title the leased assets. In addition these two Monte Carlo simulations are applied the various portfolios on aretirement benefit scheme to fund the methodologies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management CU'000 CU'000 market volatilities as well as risk diversification by recognising offsetting positions and the correlations between products Land.000) and the change in fair value of cumulative redeemable impact of aratio reasonably possible change in interest or foreign currency rates were over a year. The one-day 99% VaR number used by the Group reflects the 99% Expected return on plan assets 523 440 CU'OOO CU'OOO sale) reduced 40. (restated) Valuation The Group undertakes transactions denominated in foreign currencies. As part 39. and the information provided to key management personnel. interest rateof risk.120A(e) 19. there would be a comparable impact on the profit or equity.risk through internal risk reports which analyse exposures by degree andexpected magnitude of risks. contributions of CU8. 2012 2011 2012 2011 The Group is not subject any externally imposed capital requirements. statements for the year ended 31 included December 39.621) (19.31 IFRS IAS 19. 34 IFRS 7.407 40. Equity (ii) The Group seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures.120A(g) 7.482 (1.194 903 815 B Land and C Land.and short-term borrowings (excluding derivatives and financial guarantee contracts). Currency of B 2011: Land CU0. 34(a). Net debt Actuarial (gains)/losses (150) 135 risk (including currency risk. losses/(gains) on curtailments _ 31/12/12 31/12/11 31/12/12 31/12/11 Liabilities extinguished on settlements . 31/12/12 sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their31/12/11 aggregated to arrive at a single risk number.000).2 Definedrisk benefit plans Restrictions at maturity: on asset recognised of thisor review.5% (2011: 3.3 Financial riskarise. The only obligation of the weakening Group with respect to the retirement benefit where the CU strengthens 10% against the relevant currency.204 5.4 Market risk 0 8 within 40% to 50% of the exposure generated.189 55. 33. Nodefined other post-retirement benefits are provided to these employees. changeDetails in fair of value due to sensitivity analysis complements VaR and helps the Group to alone assess(CU its market risk The exposures.41 International International GAAP GAAP Holdings Holdings Limited Limited International GAAP Holdings Limited International GAAP Holdings Limited International GAAP Holdings Limited Notes to the consolidated financial statementsfor forthe theyear yearended ended31 31December 2012 Notes Notes Notes Notes to to to to the the the the consolidated consolidated consolidated consolidated financial financial financial financial statements International GAAP Holdings Limited Notes to the consolidated financial Notes to the consolidated financial statements December 2012 for the .Financial 40. 135 210 198 193 IFRS IAS 7.6 below) and interest rates (see note 40.62 million).1Foreign 38. The VaR methodology is a statistically probability-based approach that takes The Group operates defined retirement benefit plans finance for all qualifying employees of its subsidiary inaccount C The Group leased certain ofcontribution its manufacturing equipment under leases.which provide The use of financial derivatives isdue governed by the Group's policies approved by the board of directors.000) hasanalysis been in profit or loss as cost of sales and the remainder in administration 31/12/11 40.33(c) . 33 andfinancial 34.1 Leasing arrangements ended ended Note: The following are examples of the types of disclosures that might be required in this area.10(a) IAS 19.7 IAS 1.2Forward foreion exchange contracts Currency of C Land 186 135 Others [describe] -instruments. The redeemable preference was instruments estimated by iv)This is mainly as a result of the changes infair fairvalue value ofcumulative derivative instruments designated as hedging 31/12/12 31/12/11 CU'OOO CU'OOO 40. 39.000) due in respect of the 2012 (2011) reporting period had not been paid over to the plans. the change in equity to a 10% change in the CU against all exchange rates for the translation of new Net debt to equity ratio such loans and receivables.

000 of gains on foreign currency forward contracts relating to forecast transactions that are no longer expected to occur from the cash flow hedging reserve to profit or loss. due to the increased volatility in B Currency. which are designated as cash flow hedges. the Group reduced its forecasts on sales of electronic equipment to B Land due to increased local competition and higher shipping costs.770 0.00 0 (12 ) 15 7 22 0 Note: The table above provides an example of summary quantitative data about exposure to foreign exchange risks at the end of the reporting period that an entity may provide internally to key management personnel.000 1. the aggregate amount of gains under forward foreign exchange contracts recognised in other comprehensive income and accumulated in the cash flow hedging reserve relating to these anticipated future purchase transactions is CU239. at which time the amount deferred in equity will be reclassified to profit or loss. IFRS 7. the Group has designated certain forward contracts as a hedge of its net investment in Subfour Limited.750 2. no ineffectiveness has been recognised in profit or loss arising from hedging the net investment in Subfour Limited.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 continued In the current year.23(a) At 31 December 2012.000 remain highly probable.238 2. The Group's policy has been reviewed and.23(b) IFRS 7. 29 0.000). IFRS 7.2 97 1. which has B Currency as its functional currency.000 (2011: unrealised gains of CU194.000).028 12. At 31 December 2012.010 1. and CU982. It is anticipated that the raw materials will be converted into inventory and sold within 12 months after purchase. Upon the maturity of a forward contract.079 million of future sales of which CU97. at which time the amount deferred in equity will be reclassified to profit or loss. At the start of the third quarter of 2012.769 982 1.000 are no longer expected to occur.3 37 2 3 4 2 6 5 0 85.2 59 1 4 9 1.23(a) At 31 December 2012. using contracts with terms of up to 6 months. which are designated into cash flow hedges. The Group utilises a rollover hedging strategy.611 15 2 92 (70 ) 110 34 Sell Currency B Less than 3 months Buy Currency C Less than 3 months 0. The following table details the forward foreign currency (FC) contracts outstanding at the end of the reporting period: Outstandin g contracts Average exchange rate 31/12/12 31/12/12 31/12/11 31/12/11 FC'00 0 flow Foreign currenc y FC'00 0 31/12/1 2 CU'000 Notional value 31/121 1 CU'000 Fair value assets (liabilities) 31/12/12 CU'00 0 31/12/11 CU'00 0 Cash hedges Buy Currency B Less than months 3 to months 3 6 0.24(c) .570 2.7 80 86.000 (2011: gains of CU26. the Group has reclassified CU3.493 1. it was decided to hedge up to 50% of the net assets of the Subfour Limited for forward foreign currency risk arising on translation of the foreign operation. The Group has entered into contracts to supply electronic equipment to customers in B Land. The Group has entered into forward foreign exchange contracts (for terms not exceeding 3 months) to hedge the exchange rate risk arising from these anticipated future transactions.768 0. The Group has entered into forward foreign exchange contracts (for terms not exceeding 6 months) to hedge the exchange rate risk arising from these anticipated future purchases.974 2. The Group had previously hedged CU1. the Group enters into a new contract designated as a separate hedging relationship. the aggregate amount of losses under forward foreign exchange contracts recognised in other comprehensive income and accumulated in the cash flow hedging reserve relating to the exposure on these anticipated future transactions is CU70.763 1.958 3. The Group has entered into contracts to purchase raw materials from suppliers in B Land and C Land. It is anticipated that the purchases will take place during the first 6 months of the next financial year at which time the amount deferred in equity will be included in the carrying amount of the raw materials. It is anticipated that the sales will take place during the first 3 months of the next financial year.768 0.617 2.850 20.53 (5) Net investment hedge Sell Currency B 3 to 6 months 0. IFRS 7. Accordingly.

The interest rate swaps settle on a quarterly basis.33. The Group will settle the difference between the fixed and floating interest rate on a net basis.2Interest rate swap contracts rather than trading purposes.1Equity price sensitivity analysis interest amounts calculated on agreed notional principal amounts.000) as a result of the changes in fair value of available-for-sale shares. nonderivative instruments end of the reporting period. The average interest rate million is based onDecember the outstanding at theThe endGroup of the is reporting period. funding and liquidity management requirements.B10(c) IFRS 7. The interest rate swaps and the interest payments on the loan occur simultaneously and the amount accumulated in equity is reclassified to profit or loss over the period that the floating rate interest payments on debt affect profit or loss. and _ years Ongoing credit evaluationat is the performed on the financial condition of accounts receivable and. 2011: CU18. and the year. 34.000 The credit risk on liquid funds and derivative instruments is limited because the counterparties banks with value hedges in respect of interest rates. . The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient rates. the hedge was 100% effective in hedging the fair value (2011: decrease/increase byinternational CU12.40(b) IFRS 7. IFRS 34 7. reporting period is determined byof discounting the future reporting period.40(a) IFRS 7. The and Group does not actively trade these investments.905 million) the fair value of the leased cash flows using the curves at the million end of the period and the credit riskand inherent in the contract. contracts fixed interest rate value 31/12/12 (liabilities) 31/12/12 collateral.9Credit risk management 40.22. _ Less than 1 year 8.33. ensuring the most cost-effective hedging strategies % CU'OOO CU'OOO CU'OOO CU'OOO rating agencies where available and.000). The Group manages liquidity risk by maintaining adequate reserves. Group exposed credit risk in relation financial guarantees given towas banks provided by the was includedthe in profit oris loss at theto same time that the fair to value of the interest rate swap included in profit orGroup.8. the analysis is prepared credit _ [describe] assuming the amount of the is liability outstanding at the end of the reporting period was outstanding for the whole year. during Interest rate swap contracts exchanging fixed rate interest for floating rate interest are designated and effective as fair other comprehensive income for the year financial ended 31 December 2012 would decrease/increase by CU are 19. The Group's sensitivity to interest rates has decreased the current mainlycould due to the to reduction in guarantee variable The Group's maximum exposure in this respect is the during maximum amountyear the Group have pay if the 40. 7.10.000 risk internally to key Apart from Company A. As at 31 2012.36(b) IFRS 7. IFRS 7. 40. If equity prices had been 5% higher/lower: or repledge the collateral in the absence of default by the lessee.000) has is called on (see noteand 40. The Group's exposure and the credit ratings of its counterparties The exposures to interest rates on financial assets and financial liabilitiesis are detailed in theapproved areGroup's continuously monitored and the aggregate value of transactions concluded spread amongst [describe] liquidity risk management sectionis of this note.1).701 (5) management committee annually. The fair value of are interest rate over swaps at the end of the equipment. the largest customer of the Group (see below and refer to notes 6. Hedging activities are evaluated 31/12/12 31/12/11 31/12/11 31/12/11 with entities that are rated the equivalent of investment grade and above.5 15.00 (31 2011: balances CU0. interest rates had been 50defines basis points higher/lower and all similar other variables were held constant. This is mainly to the Group's exposure to interest rates on its variable rate borrowings. medium. where appropriate.701 (5) its own trading records to rate its major customers.1). mainly as a result of the changes in the fair value of available-forhigh credit-ratings assigned by credit-rating agencies. banking facilities and reserve borrowing facilities. . Note: The for table above provides example of summary quantitative data exposure to interest ratetime risksduring at the Concentration of credit risk related to Company A did not exceed 20% of about gross monetary assets at any profit the year ended 31an December 2012 would decrease/increase by CU43. The floating rate on the interest rate swaps is the local interbank rate of A Land.33(c) IFRS 7. facilities that the Group has at its disposal to further reduce liquidity risk.000 which sale fixed rate instruments. which has established an Cash flow comprehensive income for the year ended 31 December 2012 would increase/decrease by CU286. and by matching the maturityto profiles financial and liabilities.7 and 25. guarantee insurance cover purchased.9 million). 33.7. and Ultimate responsibility for liquidity risk management rests with the board of directors.10.34(a) IFRS 7. an to amount of CU24.1Collateral held as security other credit enhancements Under interest rate swap contracts. Concentration of credit attributable risk to any other counterparty did not exceed 5% of gross monetary assets at any time CU93. IFRS 7.000 other appropriate liquidity risk management framework for the management of the Group's short-.2 The Group's sensitivity equity of prices has assets not changed significantly the below sets out details of additional undrawn prior year. Such contracts the Group to mitigate the risk financial assets. Credit exposure controlled 3. During the year.Source Source International GAAP Holdings Limited International GAAP Holdings Limited Notes to the consolidated financial Notes to the consolidated financial statements for the year ended 31 December statements for the year ended 31 December 2012 . loss.8 Other price risks rate debt instruments the increase inDecember interest rate swaps swap floating rate debt to fixed.B8 34 IFRS 7. This information is supplied by independent regularly to align with interest rate views and defined% risk appetite. except that thefair credit risk associated with the finance receivables is mitigated because the of changing interest rates on the value of issued fixed rate debt and lease the cash flow exposures on the issued variable The sensitivity analyses below have been determined based on the exposure to equity price risks at the end of the finance lease receivables secured the leased storage The carrying amount the finance lease rate debt.33. as a means of mitigating the risk of financial loss from defaults.9.and long-term hedges (2011: increase/decrease by CU265.000 (31 December been recognised in the consolidated financial position as financial liabilities (see note 34). where appropriate. by continuously monitoring forecast and actual cash flows. not have significant credit risk exposure to any single counterparty or any group of counterparties having similar Ifcharacteristics. not permitted to sell disclosed below.000 (2011: decrease/increase by the end of the reporting period that an entity may provide internally to key management personnel.028 (31 reporting December 2011: CU0.000).40(c) Note: The table above provides an example of summary quantitative data about exposure to interest rate risks at the end of the reporting period that an entity may provide internally to key management personnel. the Group uses other publicly available financial information and are applied. The Group only transacts and by the use of interest rate swap contracts and forward interest rate contracts. the Group does and represents management's assessment of the reasonably possible change in interest rates. the Group's: The Group counterparties as having characteristics if they are related entities.for (51) The sensitivity analyses below have been determined based on the exposure to interest rates both derivatives areas. Notefrom 40.000 .22.management (51) personnel A 50 basis point increase or decrease is used when reporting interest rate15. 23(a) All interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are designated as cash flow hedges in order to reduce the Group's cash flow exposure resulting from variable interest rates on borrowings. In addition. For floating rate liabilities.15 3. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings. if not available.by counterparty limits that are reviewed and approved by the risk counterparties. exposure to interest rate movements and as a result the carrying amount of the loan was adjusted by CU5. and is assets is estimated to be approximately CU1.7.24(a) IFRS 7.1Interest rate sensitivity analysis Trade receivables consist ofswaps a large number of customers. spread across diverse industries and geographical Held for trading interest rate 1 to 2 7. year.7Interest rate risk management Credit riskis refers to the that a counterparty will default its contractual obligations resulting in financial loss to The Group exposed to risk interest rate risk because entities inon the Group borrow fundsprincipal at both fixed and floating interest Outstanding receive fixed pay floating Average contracted Notional Fair value assets the Group. The Group is exposed to equity price risks arising from equity investments.40(b) IFRS 7. the Group agrees to exchange the difference between fixed and floating rate The Group does not hold any collateral or other credit enhancements to cover its enable credit risks associated with its 40.34(a) IFRS 7.continued 2012 . The profit following tables detail 31 theDecember notional principal amounts andunaffected remainingas terms of interest rate swap for the year ended 2012 would have been the equity investments are contracts 40.continued 40. IFRS 39(c) IFRS 7. 40. receivables amounts to CU1. classified as available-for-sale and no investments were disposed of or impaired.10 Liquidity risk management outstanding at the end of the reporting period. Equity investments are held for strategic 40.

898 million) using an 8. earned on those assets.404 are set outunused below. The Group expects to meet its other obligations -amount used 520 314 from operating cash flows and proceeds of maturing financial assets.39(b) IFRS 7. Weighte Less than 1-3 3 months principal cash flows. Thetheir tables include both interest and financialbased liabilities recognised theon consolidated financial statements approximate fair values.811 IFRS 7.that loans from related parties 10.060 value The fair values of financial assets and financial liabilities are determined as follows: •the fair values of financial assets and financial liabilities with standard terms and conditions and traded on active 3.34.e. .546 3 fair value are those derived from valuation techniques that include inputs for the asset or liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates 31/12/12 31/12/11 -trade and other payables 16.foreign exchange forward contracts 10 15 9 The following table provides an analysis of financial instruments that are measured subsequent to initial recognition Gross settled: Financial liabilities held at amortised cost: 56.e.808 3.658 14.102 905 898 interest rate swaps 7 18 22 160 82 40. and the undiscounted inflows and outflows on those derivatives that require gross settlement.015 4.bills of exchange 5.798 2.100 non-optional derivatives.continued December statements statements for for the the year year ended ended 31 31 December December 2012--continued continued 2012 The following table details the Group's liquidity analysis for its derivative financial instruments.540 2.2 Financing .25.982 17. 4. The table has been on a net basis.27 Finance lease receivables 20. agreed periods.443 other than quoted 16.amount unused 936 andsuch discounted based onnot thebe applicable curves derived from quoted interest rates.9%) are used.886 22. 39(a) 29(a) IFRS 7.980 facilities The amounts included above for variable interest rate instruments non-derivative 4.1Fair value of financial instruments carried at7.11 value of financial instruments 40.249 19.731 76.388 (i.919 17.500 .10.27B(e) IFRS 7. Convertible notes liabilities on the earliest in date which the Group can be required to pay.and loans from other entities 4.amount used 14. To the extent are floating rate. Net settled: Financial lease receivables 1.120 52 .538 76.016 the . agreement: Specifically.foreign exchange forward contracts (5) 13 .2% (31 December 2011:11.184 •the fair values of derivative instruments are calculated using quoted prices.interest rate 11 as 50 205 quantitative 302 121 The consolidated financial statements includeof holdings in unlisted shares which are measured at fair value (see note exposure to interest rates at the end of the cash reporting that an(21) entity maysome provide internally key .215 The fair value of finance lease receivables is estimated to be CU1.016 effective 18 64 218 302 121 interest If these inputs to the valuation model were 10% higher/lower while all the other variables were held constant.15% and holding credit risk margin constant. 35 IFRS 7.028 1.268 Unsecured bank overdraft facility. amount Fair value amount Fair value credit risk margin constant.50(a) 7. the undiscounted amount is derived from 31/12/12 31/12/11 d that interest flows 1 notes monthis determined months assuming to 1redemption year 1-5 years 5+ The fair value of the liability component of convertible on 13 September averag interest rate curves at the end of the reporting period.B10A(b) IFRS IAS 7.373 inputs).foreign exchange forward contracts 65 132value is observable: 21 of exchange 358 350 916 920 .foreign exchange forward contracts 12 35 Weighte -trade and other receivables 19.9%) and a risk adjusted .39(c) IFRS 7. Fair value is estimated using a discounted flowperiod model.000 depending on the probability of the counterparty claiming under the guarantee which is a function of the likelihood •the fair values of other financial assets and financial which liabilities those described above) are determinedin that the financial receivables held by the counterparty are(excluding guaranteed suffer credit losses.595 d earnings growth factor of 5. .debentures 500 (31 December 502 2011: decrease/increase CU8. interest 31 December 2012 CU'000 CU'000 CU'000 CU'000 Unlisted shares Net settled: Note: The tables below include the weighted average effective interest rate and a reconciliation to the carrying Financial assets amount inswaps the consolidated statement financial position an example of summary data about .015 31 December 2011 carrying amount of the shares would decrease/increase by CU7.843 29.922 4. reviewed annually and payable at call: unused at the end of the reporting period (2011: CU12. The risk tables have been drawn up based on the undiscounted flows of financial Exceptrepayment as detailed in the following table.are Loans and receivables: 22.11. -amount unused techniques and assumptions applied for the purposes of measuring fair 1. The inclusion of information on non-derivative assets is necessary in order to projected interest rates as illustrated by the yield curves at the end of the reporting period. this estimate is subject to change 1. Secured bank loan facilities with variouspricing maturity datesbased through 2012 and cash which may be extended by mutual accordance with generally accepted models onto discounted flow analysis.currency swaps — averag discount factor of 12.2 below.2Valuation 2.032 . debentures and perpetual notes). of which CU9.686 40.405 5. Interest measured at the value of future cash flows estimated guarantee. grouped into Levels 1 to 3 based on the degree to which the fair .3Fair value measurements recognised in the consolidated statement of financial position Financial liabilities .800 1 .8% for a 32 months loan and holding the CU'000 CU'000 CU'000 CU'000 CU'000 which the Group may be required to pay. The interest rate on used to discount cash flows based on the quoted swap rate interest for a by 17that months loan of drawn up based the undiscounted contractual maturities of the financial assets including will be 40.617million). CU'000 CU'000 Financial payables 14 12 89 million were 87 The Group lease has access to financing facilities as described in note 40.460 prices included 17.220 20. Where such prices are not available.loans to related parties market prices or rates.900 are observable for the asset or liability.Level interest-free loan measurements from the government 2.95% interest effective rate based on a quoted swap rate of 6.B10(c ) IFRS 7. IFRS 7.convertible notes 4.25%) discount rate based on a quoted five-year swap rate and adding a credit margin that reflects the secured nature of the receivables.276 for both 3.144 165 82 assets or liabilities.perpetual notes 1.000 by . 3. the directors consider that the carrying amounts of liability financial assets and understand the Group's liquidity management as the liquidity is managed on a net asset cash and basis.711 2.43% amortised cost When the amount payable or receivable is notwas fixed.905 Held-to-maturity investments: 5.376 10.amount 5. currency forward The amounts included above for financial contracts are the maximum Foreign amounts the Group couldcontracts be forced Secured bank overdraft facility: are measured using quoted forward exchange rates and yield curves derived from quoted interest to -settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the 64 amount used 18 rates matching maturities of on theexpectations contracts.142 1.11.167 financial assets 4.2% In determining the fair value.222 21.1Liquidity The following table and details interest the risk Group's tablesgross expected maturity for its non-derivative financial assets.Source Source Source Source InternationalGAAP GAAPHoldings HoldingsLimited Limited International International InternationalGAAP GAAPHoldings HoldingsLimited Limited Notes to the consolidated financial Notes Notes to to the the consolidated consolidated financial financial statements for the Notes Notes to the the consolidated consolidated financial financial statements for the yearended ended 31 December statements year to ended for 31 the December year 2012 31 . and option guarantee pricing models for optional derivatives. Based at therate end swaps of the are reporting period.604 7. the amount disclosed has been determined reference to the The following tables detail the Group's remaining contractual maturity financial for its non-derivative financial liabilities with 7.997 liability that areend not of based on observable market data (unobservable determined at the the reporting period. significant assumptions used in determining the fair value of the following financial assets and liabilities .500 discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for 2.5% (31 December 2011: 8.905 2. The table has been 2012 2012 -continued continued drawnFair up based on thepreference undiscounted contractual net cash inflows and outflows on derivative instruments that settle Redeemable cumulative shares 40. bills of -amount used 358 916 exchange. either directly (i.111 14.610 2.Level bank loans 2 fair value measurements are those derived from inputs 16.673 56.000 Unsecured bill acceptance facility. as prices) or indirectly from prices). The contractual maturity is based onCarrying the earliest dateyears on Carrying 2015 and using a 7. thepresent Group considers that it is982 more likely than . 35.11. which includes assumptions not Gross settled: supportable by observable . 5. reviewed annually: liquid markets are determined with reference to quoted market prices (includes listed redeemable notes.102 million (31 December 2011: CU0.000).088 3.16. .bills currency swaps Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical . -amount unused 1. an (31 December 2011: 4.627 22).213 at fair value.586 25.050 and . derived 29.27B(a) IFRS 7.a 1.10.420 4. and not that an amount will payableyield under the arrangement.10. However.160 82 4. 40.746 tothat 17.637 3.34.27 IFRS7.782 within Level 17.

018) 31/12/11 Level 1 CU'000 Financial assets at FVTPL Derivative financial assets Non-derivative financial assets held for trading Available-for-sale financial assets Redeemable notes Unlisted shares Total Financial liabilities at FVTPL Other derivative financial liabilities Financial liabilities designated at fair value through profit or loss Total Level 2 CU'000 Level 3 CU'000 Total CU'000 - 397 - 1.539 31/12/1 2 3______ CU'000 528 1.093) (143) (14.258 (75) (75) 2.986 (75) (143) (14.200 - - 5.200 2. .200 5.285 6.539 2.719 9.285 9.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 .924 2.719 528 7.639 2.639 397 1.180 5.501 IFRS 7.180 397 5.continued Level 1 CU'000 Financial assets at FVTPL Derivative financial assets Non-derivative financial assets held for trading Available-for-sale financial assets Redeemable notes Unlisted shares Total Financial liabilities at FVTPL Contingent consideration in a business combination Other derivative financial liabilities Financial liabilities designated at fair value through profit or loss Total Level2 Total CU'000 528 Level CU'000 1.875) (15.180 2.875) (15.27B(b) There were no transfers between Level 1 and 2 in the period.

for which a management fee of CU0.00 The remuneration of directors and other members of key management personnel during the year was as banks. Such fair value gains or losses are included in 'other gain and losses' (see note 8). The amounts outstanding are unsecured and will be settled in cash.1related Consideration received 42.940 IFRS IFRS IFRS 7. the Group disposed of Subzero Limited which carried out its entire toy manufacturing 42.2 Analysis of asset and liabilities over which was lost International Holdings Limited 693 582 439 427 Year ure at with IFRIC Group 13 Customer Loyalty Programmes. CU19.12% 13. Company.000 were received in the form of to consulting services. John Banks (the ultimate controlling party of the _____________________ 2012 Each employeetransferred share option of Subsix Limited converts into one ordinary share of Subsix Limited on exercise. The a control premium. been eliminated on consolidation and are not disclosed in this note. end oftransaction. Had these business combinations been at 1had January 2012. 0 00 80369 etduring the year 31/12/12 31/12/11 Subseven Limited of the consolidated Manufacture of leisure goods 100 For the purposes statement of cash flows.2 Loans to when related parties the fair value of the non-controlling interests in Subsix Umited. year.1 Employee share option plan of the Company Limited Limited share Total Subsix Subseven CU'000 CU'000 ended operations. plant and equipment Goodwill 00 1. The following options were exercised duringis year: Cash and share bank 23.000unless 18/09/11 17/09/14 0. credit ratings and debt/equity position of the Group after the period (2011: a gain of CU73. average commercial rate of and interest. in respect Allshare outstanding share options granted by Subsix to its employees had vested by the acquisition These the price was two and afinancial half times the exercise price.41(f) IAS 27.27B(d) IFRS 7. and behavioural CU120.98 the shares [describe] 477 Holdings Limited 398 293 149 78 (973) (3) During Granted the current on 31 March year.000 respectively see notes 20 and 45) had not been received in cash at the Net assets disposed of 6.1. The following were the key model inputs used in determining the fair proceeds in respect of the Group's disposal of part of its interest in E Plus Limited and its entire interest in Subzero 42.(see 3 fair value measurement represent contingent consideration to the acquisition of Subsix Limited note CU'000 CU'000 previously been recognised as an asset.Source Source Source Source Source Source Source International GAAP Holdings Limited International GAAP Holdings Limited International GAAP Holdings Limited International International GAAP GAAP Holdings Holdings Limited Limited International GAAP Holdings Limited International GAAP Holdings International GAAP Holdings Limited Limited 31/12/12 31/12/1 Notes to the consolidated financial statements for the Notes Notes to to the the consolidated consolidated financial financial Notes to the consolidated financial statements Notes to the consolidated financial statements Notes to the consolidated financial statements 1 Notes Notes Notes to to to the the the consolidated consolidated consolidated financial financial financial statements statements for the for the Notes to the consolidated financial statements for the year ended 31 December 2012 year ended 31 December 2012 -31 continued statements statements for for the the year year ended ended 31 December December for the year ended 31 December 2012 -for the year ended 31 December 2012 . the entity is Share176 overdrafts Other long-term benefits 115 Current assets Cash cash equivalents receivables Inventories 288 The initial accounting for the acquisition of Trade Subsix Limited has only been provisionally determined at the end of the required to describe which disclosures could not be made and the why they could not be made. •assumed adjustments because the lack of control or lack of marketability that market participants would 31/12/12 periods.18 The remuneration of directors and key executives is determined by the remuneration committee having regard to 0. The theonly directors financial have: liabilities subsequently measured at fair value on Level of damage to goods in transitin to accordance a customer. IFRS 7. The weighted average market-based measure of theCU'000 share options at the acquisition date Non-current assets Property.637 loss.994) Cumulative gain/loss on financial assets reclassified from equity on loss of control of No more share options were granted and exercised after the Group obtained control over Subsix Limited. have 31 December 44.000 payment will be required.000 relating assets held at the end of the reporting2.Business combinations 45.000 non-cash 31/03/12 investing and 30/03/13 financing activities 1. At the date of finalisation ofoptions these consolidated financial statements.B64(q) 2.3).27B(c) 2.814 based Forfeited during the Current liabilities The number of options granted is calculated in accordance with the performance-based formula approved by CU'000 CU'000 CU'000 CU'000 Goodwill arose in the acquisition of Subsix Limited and Subseven Limited because the of the combination included (314.in Where relevant. 31/12/12 31/12/11 The acquired table above at the only beginning includes of the current assets.50% been excluded from the consideration transferred and have been recognised as an expense in profit or loss in the All gains and losses included in other comprehensive income relate to unlisted shares and redeemable notes held at the excluded takeover defence costs of the acquiree as a one-off pre-acquisition The loans to key management personnel are unsecured.000.2).19 3. Cash and cash equivalents at the end of thecost reporting period as shown in Year Year 1. the year Expired ended ended formula rewards executives and senior the Group's and the individual's achievement to the financial Contingent position liabilities as follows: (see note 35) employees to the extent of relation (45) (45) 196.000) 1 will CU Deferred tax liabilities (17) claims .083 of the likely tax values. exercise.10% 13. which are related parties of the Company.13% 5.843 through Weighted n of Loans from Mr.15 life used in the model has been adjusted based on management's best estimate for the effects of non-transferability.50% 5.4 Share exercised during intangible the year assets.B66 IFRS 2.All outstanding Cash and cash equivalents 200 200 r of r of price Principal Dateof interests Consideration controlling interests (outstanding share options The Group has been provided loans at rates comparable to the average commercial rate of interest.45 24. or one month of the The non-controlling interest (20% interest in Subsix Limited) recognised at the acquisition date was Included in the profit for the yearownership is Group CU35.B67(a) 24.94 (2011: CU1. CU'000determined CU'000 CU'000 19.45(a) IFRS 3. the expected The receivables acquired (which principally comprised trade receivables) in these transactions with a fair value of Consideration paid in cash 677 3.00 Year Balance atarising beginning 290.CU (17) the recognition criteria for identifiable Associates of options International Group 42.40(a) 7.000 represents the estimated fair value of this obligation at the •the Group acquired ofof equipment under a finance lease (2011: nil). (including the probability of meeting market conditions attached to the option). to CU145.000 attributable to the additional generated by Subsix 0business Subseven Limited as indicated in note 44.40(d) 2. this amount has were not share options were measured IFRS the 2 relating at theirwas market-based measure of CU5. the tax values of Subsix's assets are required to be reset based on market values of 00 price Cash and bank balances included in a disposal Fair Share-based payments 94 86 ended 42.41(f) The gain on disposal is included in the profit for the year from discontinued operations (see note 11).1Details of the employee share option plan of the Company Year Arising from customer loyalty programme (i) 184 147 CU'000 CU'OOO CU'OOO CU'OOO 10. For tax purposes.40(a) 24.1. IFRS 3. Series 1 Series The weighted average fair value of the share granted during the financial year is CU0.428 of Subsix Limited is CU1.000 and Less: cash and cash equivalent balances acquired (200) 47. beingPurchases anSubsix was estimated by applying an income approach.4 million to acquire (4. whichever is the earlier.080 International Group Holdings Limited 209 197 231 139 (1) Granted on 31 March 2011 140.0 290.000 30/09/11 29/09/12 1. plant and equipment with an aggregate fair value of CU0.16 million) was charged and paid.814 effective settlement ofassets this claim of on the acquisition of Subseven Limited by 2 recognising CU40.854 Non-current assets Goodwill oncash acquisition 287 191 478 Consideration received in rash and cash equivalents Deferred sales proceeds (see note 25) 2012 46.40(b) IAS IAS 7.3 Loans from related parties 42. 34(c). 2012 the Group entered into the following 160. Options were priced using a binomial option pricing model. the revenue of the Group from continuing The share options outstanding at the endeffected of the options year a weighted average exercise price of CU1.446 19. it was assumed that executives employees would the options vesting date when In determining the 'pro-forma' revenue and and senior profit of the Group had exercise Subsix Limited and after Subseven Limited been ii)Prior to the acquisition of Subseven Umited.778 Post-employment benefits 160 139 before the financial statements authorised for issue the initial accounting for the acquisition (2) following Granted on 18 September 2011 are 3. group entered into the following trading transactions with related parties that are not CU'OOO voting rights. (6. .000 •assumed discount rate of 18%.B64(I) (c) IAS 27.2Movements in share options during the year Series 1 42.000 (Subsix Limited) and CU8.376 29. The options carry neither rights to dividends nor voting rights.based Options series date date price date All outstanding vested share options were measuredNumber in accordance with IFRS 2 at their market-based measure at the CU'000 directors' best estimate 23.908 Amounts owed Year 1. Details of transactions between the Group and CU'OOO CU'OOO year: were not replaced and were still in existence at the date of acquisition of Subsix Limited. net of outstanding bank overdrafts.Cash and payable by the recipient on receipt of the option. CU'000 CU'000 Holdings Limited 398 291 — (1) improvement Granted on 13 in March net profit 2011 • 2.289 981 897 883 and Subseven Limited.2 and a weighted remaining The Group has provided several of itsyear key had management personnel with short-term loans average at rates comparable to the calculated borrowing costs on the funding levels. executives (288) During the year.000) 2. Option series were made at market price to reflect the quantity of departments. Methods and significant assumptions used in determining Inputs intoin the model Option series 44.000 7. the consideration paid for the combination effectively included amounts in Trade and other payables (18) (35) (53) the consolidated statement of cash flows can becontrol reconciled to the related items in the consolidated statement of 45. as approved by shareholders at a previous annual meeting. Holdings Limited 1.00 which are considerations.43 IFRS IFRS 3. No Consideration 505 687 1. less average discounts of 5%. 435Other related party transactions •the Group disposed of property. Yearon Year 1. volatility is based on the historical share price volatility over the past 5 years. Group revenue growth. 3. Series 3 Series 4 No Loans gain to orkey loss management for the year relating personnel to this contingent consideration has been recognised in profit or 3.40(b) IAS IAS IAS 7. The directors consider these 'pro-forma' numbers represent an debts approximate measure the and No expense has been recognised in the current or prior years for bad or doubtful in respect of the of amounts •assumed long-term sustainable growth rates of 3% to 5%. exercise restrictions ended Subsix's PBIT for the past three years has been CU350.00 Non-current liabilities Borrowings Deferred tax liabilities All options vested on their date of grant and expire within twelve months of their issue.4 Compensation of key at management personnel Plant and equipment 143 512 Options may be exercised any time from the date ofgoods vesting 0 to the date of their expiry. The revenue was offset training costs incurred in 2012 and 2 (CU250.27% 13. 3. the non-controlling interest and amounted to CU 127. and been adjusted based on management's best estimate for the effects of non-transferability. Expected volatility is based on the historical share price volatility over the past 5 years.40 contractual life of 551 days. cash 31/12/12 and 30/11/12 cash 31/12/11 equivalents cash on hand and 687 in 1.continued 31 . Option life 1 year revaluation 1 year year29. Expected volatility 15.45(b) B64(a) to (d) IFRS 2.737 1. In line with the requirements of IFRS 3. International Holdings Limited performed certain administrative services for theLimited.192 ended 43. measured by reference to the fair value ofLimited.46.2 846 Note: The disclosures illustrated also required for business combinations afterfor the end of the reporting period but 1.7 million.45(c) IAS IFRS 3.2 Consideration 31/12/12 other calculations had not been finalised and they have therefore only been 31/12/11 provisionally determined on the 31/12/12 31/12/12 31/12/11 Termination benefits .034 reporting period.B64(k) IFRS IFRS IAS 7. All options vested on and their date of grant and expire within three years ofreasons their 19.00CU80.82 not reflected in the consolidated statement of cash flows: effects of early exercise.000). 8. 290. Short-term benefits 1.2.4 The following share-based payment arrangements were in existence during theissue. These benefits are not recognised separately from datet goodwill because datethey do not price meetCU'OOO Limited 31/12/1 31/12/1 CU'OOO improvement in share price • against reduction in warranty December 2011 (see note 32).0 1.0 ended Options series Number Grant Expiry Exercise Subsix the during the year 31/12/1 judged against both qualitative and quantitative criteria from following financial and customer service measures: Subsix Limited and Subseven Limited were acquired so as the to continue the expansion of 31/12/12 the Group's activities on benefit Subsidiaries of expected of International synergies.7.B64(h) 7.8million in discounted respect ofend Subseven Limited.000 (being the accounting formeasure the business combination rather than the carrying amounts recognised inSeries the pre-acquisition Consideration received Net disposed Non-controlling interests the market-based atlegal the acquisition date are set out in note 42.1Market-based measure of share at the acquisition date by related parties to related 2.14% 5.B64(q) IFRS IAS IAS IAS 7.1.3 million in respect of Sales of goods to related parties were made at the Group's usual list prices.Share-based The following reconciles the share options outstanding at the beginning and endSubsix of the Subseven Year 31/12/12 31/12/11 Balances and 2012 transactions between the Company and its subsidiaries.B64(g) IAS IFRS IFRS 7. CU75.40(d) 2. Disposal ofpayments a subsidiary 443Assets 445Goodwill acquired arising on and acquisition liabilities at the date ofin acquisition 42.43 (2011: end of the reporting period.245 million and CU960.39(b) IAS 24.B64(i) IAS IFRS 2.1.18. instruments reclassified from equity to profit or loss on loss of control of subsidiary Exercise price 1.2. the Limited Group was pursuing a legal claim against that companydate. The loans from the and equivalents seniorof employees Less: cash with andmore cash than equivalent five years' service with the Group may be granted options to purchase ordinary members the Group: share options granted by Subsix Limited had been vested by the date when the Group acquired Subsix Limited. No Year amounts are paid or ultimate controlling party are converts unsecured.00 1.192 meas i)The deferred revenue arises in respect of the Group's Maxi-Points Scheme recognised in accordance year Exercised during shareholders at the previous annual general meeting and is subject to approval by the remuneration committee. within period the 'other lineas item.18. and behavioural considerations.40% 13. probable that this CU40.00 exercise restrictions (including theestimate probability meeting market conditions attached to the not option). ed 324 537 . and a weighted average remaining contractual life of 103 days (2011: 184 days).00 1. Where relevant.000.continued 43.3 Gain on disposal of aa subsidiary Options were priced using binomial optionand pricing model. CU87. it was assumed that executives and senior employees would exercise the options 444Non-controlling interests Holdings Limited 29 142 447Impact ofwhen acquisitions on the results of the Group vesting date the share price was three and a half times the exercise price.00 ended ended Mark 324 537 of year Granted 1.3681. 1.000 and Others [describe] . 2been operations would have been CU145 million.00 The balances were at the end of the period: (378) balances Bank improvement in return tooutstanding shareholders • reporting reduction in rate of staff turnover (538) 446Net cash outflow of subsidiaries incomplete at on theacquisition time the financial statements are authorised for issue.00 CU65.44 3.716 the assets. Current 265 372 CU (%) CU'000 Inventories 57 57 Less: fair value of identifiable net assets acquired (350) (496) (846) Sales of goods Purchases of goods The following share-based payment arrangements were in existence during the current year: Non-current 59 165 Each employee share option into one ordinary share of the Company exercise. Associates of International Group CU'OOO CU'OOO (4) Granted on 29 September 2012 60.00).000 (Subsix Limited) and CU105.37 1.7 7.000 (Subseven Limited).2 is CU'OOO 1. 45. In addition to the above.00 None of the goodwill arising onare these acquisitions expected to be deductible tax purposes.000 29/09/12 28/09/13 2.000 results of client 13/03/11 satisfaction 12/03/14 surveys 350 4960. futuremarket developmentand theassembled workforce of Subsix Limited 00 43 government 00 Non-current liabilities ii)The deferred revenue arises as a result of the benefit received from an interest-free loan received in 1 31/12/12 leisure goods. the2013 expected life used in the model has Year ifshare Subsix Limited's profit before interest tax (PBIT) each of the years and 2014 exceeds CU500.00% 13. 7. In such circumstances.2 Employee share option planrecognised of a subsidiary acquired the current year 42. The total gains losses the year included a consideration gain of CU72. 36(b).Related party transactions assets 44.000 (Subsix Limited: Acquisition-related costs amounting Subseven Limited: have business combination.81% Risk-free interest rate 5.000 31/03/11 30/03/12 1.B64(e) 1.18 million (2011: CU0.45% SB Others [describe] Gain on disposal 1.17). and the profit for the year from continuing operations would have CU1. 1.662 acquisition date. the Group has recognised the calculated depreciation of plant and equipment acquired on the basis of the fair values arising in the initial included the non-controlling interest in Subsix Limited.854 amounts are paid or payable by the recipient on receipt of the option.994 parties. the necessary market valuations and 175 value Grant Expiry Exercise at grant group held for sale transferred parties 44.000 attributable to Subseven Revenue for the year includes CU2. performance of individuals and market trends.00 include Total consideration received 8.3 Movements in options during the year Reconciliation 454 Net cash inflow of Level onshares 3 disposal fair value of a measurements subsidiary of financial 43.38 220. Options may be exercised at any time from the date of vesting to the date of their expiry. This has financial statements.000 on average and the directors do not consider it performance of the combined group on an annualised basis and to provide a reference point for comparison in future owed by related parties.45(a) IAS 20.B64(o) 3. The best at of acquisition date of the contractual cash flows expected to be 1.Non-cash transactions Unlisted Others Subsidiaries of30 International Group (2) Granted on September 2011 150.17 IFRS 3. The options carry neither rights to dividends nor Weight Current assets 31/12/12 127 general — 127 Numbe Numbe exercise equity Plus: non-controlling interests (20% in Subsix Limited) Plus: nonConsideration received inentities rash and rash accordance with the terms of the plan.000.estimating consider 43.20% 15.2Fair value of share options granted in the year appropriate allocation of costs incurred by relevant administrative value: Limited (CU1.00.0 0 IFRS 3.0 ended ended equivalents 960 Subsix Limited Manufacture of leisure 15/07/12 505 43. current years: Amounts owed and prior 22.45(d) 47(a) 3. 1 year current year. In addition. To allow for the effects of Expected early CU'OOO acquisition date. as described in note 28. the reporting andexpenses' are reported changes of 'Investment reserve' (see1 note Dividend yield 13.32 1.000 respectively. with Although Group confident of recovery.19 IFRS 24. To allow for the Current liabilities Payables collected are CU10. 45. The outstanding options On 30 November 2012.23 IFRS 2. 47(a) IAS IFRS 3. 390 In Company) 7.1 Subsidiaries acquired Subsix Limited has a share option scheme for its executives and senior employees.2.1.4 CU CU 5. the Group is required to pay the vendors an additional CU300.53 subsidiary Cumulative exchange gain in of the net price assets of theto subsidiary and related hedging options outstanding at the end of the an exercise of CU0.continued for the year ended 31 December 2012 statements year year ended ended 31 for 31 December December the year 2012 ended 2012 .1 Trading transactions profit average voting The Arising Company from government has a sharegrant option (ii) scheme for executives and senior employees of the Company and140 its subsidiaries. No guarantees have been given or received.027 be offset against training costs to be incurred in 2013 (CU140. The share Grant date share price for 1.000 (Subseven Limited) had gross contractual amounts of CU104.15Share options outstanding at the of the year Limited and CU2.18.19 IAS 7.088 estimated fair value ofavailable-for-sale the claim) as a gain in profit or loss within the 'other gains and losses' line item. 2011 Limited Limited Total CU'000 CU'000 CU'000 Fair value 31/12/12 Proportio other parties are disclosed below. i)Under the contingent consideration arrangement.342) 314.566 averag CU Trade granted and by other Subsix receivables Umited) 87 5 105 192 5 options activity options acquisition acquired transferred balances disposed of shares.29 resulted in or a corresponding increase inrespect the transferred.000).40(c) IAS 7. issue proceeds of CU8. goods purchased and the relationships between the 42. This fair value and CU 13. Inputs into the model (471) resignation of the executive or senior employee.46.40 after 0.continued December continued 2012 2012 -continued continued continued continued 2012 .

The legal claim is expected to be settled in the course of the next eighteen months.17 17. The Group is not contingently liable for the liabilities of other an option to extend for aventures. the premises of Subfive Limited were seriously damaged by fire.3 million. All operating lease contracts over 18 at the expiry of the lease periods. The directors believe. but the cost of refurbishment is currently expected to exceed the amount that will be reimbursed by CU8.1Leasing arrangements IAS IAS 37. with being more or less favourable than currently expected. the directors believe that it is probable that their claim will be successful and that compensation of CU0. 48. The amount disclosed represents the aggregate amount of such contingent liabilities for which the Group as an investor is liable. All operating lease contracts contain market review clauses in the event that venturers in its joint the lessee exercises its option to renew.7 31/12/12 CU'000 31/12/11 CU'000 - Faulty goods claim (iv) 140 Operating leases relate to leases of land with lease terms of between 5 and 10 years.35(c) IAS IAS 10.2 Payments recognised as an expense 51. The extent to which an outflow of funds will be required is dependent on the future operations of the associates being more or less favourable currently expected. based on legal advice.1Leasing arrangements The extent to which an outflow of funds will be required is dependent on the future operations of the joint ventures Operating leases relate to the investment property owned by the Group with lease terms of between 5 to 10 years. IAS 10.14 million will be recovered.35(c) IAS 17. 48.89 17.1.35(d) IFRS 7. iii)The amount disclosed represents the Group's share of contingent liabilities of associates. Based on 72 negotiations to date.2.Source Source Source InternationalGAAP GAAPHoldings HoldingsLimited Limited International International GAAP Holdings Limited Notesto tothe theconsolidated consolidatedfinancial financialstatements statementsfor forthe the Notes yearended ended31 31December December2012 2012--continued continued year 48. iv)An entity in the Group has a claim outstanding against a supplier for the supply of faulty products. that the action can be successfully defended and therefore no losses (including for costs) will be incurred.Approval of financial statements The financial statements were approved by the board of directors and authorised for issue on 15 March 2013.1.56(c) IAS 37.86(b) . further 10 years. The lessee does not have an option to purchase the property at the expiry of the lease period.1.Operating lease arrangements 502Contingent assets 48. IAS 17.1The Group as lessee 48. Insurance claims are in process.2The Group as lessor ii)A number of contingent liabilities have arisen as a result of the Group's interests in joint ventures. 48. 52.Events after the reporting period On 18 January 2013.4 Liabilities recognised in respect of non-cancellable operating leases i)An entity in the Group is a defendant in a legal action involving the alleged failure of the entity to supply goods in accordance with the terms of contract.35(a) 48.21 IAS 17. Rental income than earned by the Group from its investment property and direct operating expenses arising on the investment property for the year are set out in notes 7 and 13 respectively.

but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. the consolidated financial statements present fairly. We conducted our audit in accordance with International Standards on Auditing. which comprise the consolidated statement of financial position as at 31 December 2012. 15 March 2013 Note: The audit of the financial statements may be conducted in accordance with International Standards on Auditing (ISA) and/or applicable local auditing standards. In making those risk assessments. including the assessment of the risks of material misstatement of the consolidated financial statements. auditing standards or regulations. Opinion In our opinion. When local auditing standards or regulations apply. . Management's responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards. in all material respects. as well as evaluating the overall presentation of the consolidated financial statements. whether due to fraud or error. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. making reference to local laws. The procedures selected depend on the auditor's judgement. and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement. the report format will be affected by those local rules. whether due to fraud or error. the financial position of International GAAP Holdings Limited and its subsidiaries as at 31 December 2012 and their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards. The format of the report above is as specified by ISA 700 (Revised). and a summary of significant accounting policies and other explanatory information. the [consolidated statement of profit or loss and] consolidated statement of profit or loss and other comprehensive income.Global Version INDEPENDENT AUDITOR'S REPORT (APPROPRIATE ADDRESSEE) We have audited the accompanying consolidated financial statements of International GAAP Holdings Limited and its subsidiaries. the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances. consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.Source International GAAP Holdings Limited Notes to the consolidated financial statements for the year ended 31 December 2012 continued ISA 700 (Revised) . Auditor's responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management. The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements.

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