GLOBAL

5. SIGNIFICANT ACCOUNTING POLICIES (cont'd)(o)ProvisionsProvisions are recognised when the Group has a legal or constructive obligation as a resultof past events that it is probable that an out¯ow of resources embodying economicbene®ts will be required to settle the obligation, and a reliable estimate of the amount ofthe obligation can be made.Redemption of customers' reward pointsThe Group issues ``VIP Cards'' to customers who enrol as VIP members. Customersholding VIP Cards are awarded reward points upon the purchase of the Group's products.These reward points are not transferable or exchangeable for cash but can be used by VIPmembers to redeem products or redeem against their subsequent purchases, provided thatthe minimum purchase requirement is satis®ed. The Group recognises the estimatedliability of the cost of the products to be redeemed by the customers using the rewardpoints given on the purchases made. The provision is calculated based on the estimatedvalue of the reward points, which approximates the cost of the products to the Group.(p)Employee bene®tsEmployee leave entitlementEmployee entitlements to annual leave are recognised when they accrue to employees. Aprovision is made for the estimated liability for unutilised annual leave as a result of servicesrendered by employees up to the balance sheet date.6. REVENUE2001 2002 2003$ $ $Sales 28,409,421 42,010,029 50,348,468Other operating income:Rental income 26,302 Ð 66,412Management fees received Ð Ð 80,000Foreign exchange gains Ð 5,121 97,022Product promotion subsidy received 58,817 470,502 1,047,744Other income 1,518 4,370 76,08486,637 479,993 1,367,262Interest income (note 8) 8,182 6,127 2,76828,504,240 42,496,149 51,718,498The sales of the Group represent the invoiced value of goods sold, net of sales returns andgoods and services tax and exclude sales between Group companies.D-11