Financial Statements - Mewah Group

MEWAH INTERNATIONAL INC.
ANNUAL REPORT 2011
Notes to the Financial Statements
For the financial year ended 31 December 2011
3. Critical accounting estimates, assumptions and judgements (continued)
(d)
Uncertain tax positions
The Group is subject to income taxes in numerous jurisdictions. In determining the income tax liabilities, management
is required to estimate the amount of capital allowances, incentives and the deductibility of certain expenses (“uncertain
tax positions”) at each tax jurisdiction. Where the final outcome of these matters is different from the amounts that were
initially recorded, such as due to changes in tax rules or revised interpretations of existing tax laws and precedent such
differences will impact the income tax provisions in the corresponding periods.
(e)
Useful lives of plant and equipment
The cost of plant and equipment are depreciated on a straight-line basis over their useful lives, which management
estimates to be of 20 years.
These estimates could change significantly as a result of technical innovations.
If the actual useful lives of these plant and equipment differ by 5% from management estimates, the carrying amount of
the plant and equipment will be increased by US$622,000 or decreased by US$562,000 and correspondingly to profit or
loss.
4. Revenue
Group
2011 2010
US$’000 US$’000
Sale of agricultural products including palm based edible oils
and fats, and other consumer products 4,467,933 3,533,071
5. Cost of sales
Group
2011 2010
US$’000 US$’000
Cost of inventories 4,212,598 3,280,599
Losses/(gains) from derivative financial instruments 31,139 (48,341)
Labour costs and other overheads 38,577 34,563
4,282,314 3,266,821
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