Annual Report 2012 - HKExnews

Notes to the Consolidated Financial Statements (Continued)
7 Expenses by Nature
2012 2011
HK$
HK$
Revenue sharing with landlords of Office and Commercial Networks (Note a) 4,487,959 4,813,523
Revenue sharing with landlords of In-store Network (Note a) 2,327,808 2,278,414
Revenue sharing with Youku Inc. 5,681,875 128,012
Sales commission 3,112,587 2,527,803
Production and installation 1,120,012 1,267,608
Auditor's remuneration 1,376,931 1,295,925
Depreciation (Note 13) 3,157,623 2,200,845
Amortisation (Note 14) 654,492 654,491
Operating lease payments 2,517,668 2,253,584
Employee benefit expenses excluding equity-based compensation (Note 8) 23,133,629 19,768,166
Equity-based compensation 2,241,583 2,902,128
Marketing and promotion expenses 18,287,826 10,105,198
Travelling expenses 1,901,363 1,456,029
Provision for impairment of trade receivables (Note 15) 1,038,747 414,806
Professional parties fees 4,558,818 741,838
Other expenses 6,218,065 4,832,597
Total cost of sales and administrative expenses 81,816,986 57,640,967
Note:
(a)
There are no minimum lease payments to landlords of Office and Commercial Networks and In-store Networks. Revenue sharing with landlords of
Office and Commercial Networks and In-store Networks was calculated based on the rates agreed between the Group and landlords and is recognised
as cost of sales when the related advertisements are telecasted.
8 Employee Benefit Expenses (Including Director’s Emoluments)
2012 2011
HK$
HK$
Salaries, wages and allowances 20,624,969 17,719,479
Pension costs — defined contribution plans 1,575,696 1,359,631
Other post-employment benefits 932,964 689,056
23,133,629 19,768,166
FOCUS MEDIA NETWORK LIMITED Annual Report 2012
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