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NOTES TO CONDENSED INTERIM FINANCIAL REPORT (CONTINUED)
8 CAPITAL EXPENDITURE
Intangible assets
Property, plant
and equipment
US$’000 US$’000
Six months ended 30 June 2012
Net book amount as at 1 January 2012 6,525,999 325,432
Adjustments to purchase consideration and net asset value (Note (a)) (22,149) –
Adjustments to purchase consideration for acquisitions completed prior to 1 January 2010 (Note (b)) 87,192 –
Additions 68,054 81,907
Acquisition of businesses/subsidiaries 175,828 3,170
Disposal of businesses – (1,365)
Disposals – (983)
Amortization (Note (c))/depreciation (101,117) (37,682)
Exchange differences 4,906 (850)
Net book amount as at 30 June 2012 (unaudited) 6,738,713 369,629
NOTES:
(a) These are adjustments to purchase considerations and net asset values related to certain acquisitions of businesses/subsidiaries in the prior year,
which were previously determined on a provisional basis. During the measurement period, the Group recognized adjustments to the provisional
amounts as if the accounting for the business combination had been completed at the acquisition date. Save as adjustments to intangible assets
stated above, there were corresponding net adjustments to purchase consideration of US$29,278,000 and other assets/liabilities of approximately
US$7,129,000.
(b) For acquisitions completed prior to 1 January 2010, the effective date of HKFRS 3 (Revised) “Business Combination” being adopted by the
Group, changes in accrued contingent considerations determined based on post-acquisition performance were made against goodwill.
(c) Amortization of intangible assets included amortization of computer software and system development costs of US$3,659,000, amortization of
brand licenses of US$65,314,000 and amortization of other intangible assets arising from business combination of US$32,144,000.
9 TRADE AND BILLS RECEIVABLE
The ageing of trade and bills receivable based on invoice date is as follows:
Current to
91 to
181 to
Over
90 days 180 days 360 days 360 days Total
US$’000 US$’000 US$’000 US$’000 US$’000
Balance at 30 June 2012 (unaudited) 1,991,922 79,705 10,003 12,689 2,094,319
Balance at 31 December 2011 (audited) 1,879,710 100,825 13,178 10,829 2,004,542
All trade and bills receivable are either repayable within one year or on demand. Accordingly, the fair values of the Group’s trade
and bills receivable approximates their carrying values.
A significant portion of the Group’s business is on sight letter of credit, usance letter of credit up to a tenor of 120 days, documents
against payment or customers’ letter of credit to suppliers. The balance of the business is on open account terms and is often
covered by customers’ standby letters of credit, bank guarantees, credit insurance or under a back-to-back payment arrangement
with suppliers.
LI & FUNG LIMITED | INTERIM REPORT 2012
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