Annual Report 2011 - QuamIR

Notes to the Consolidated Financial StatementsFor the year ended 31 March 201120. Goodwill (continued)Commodity priceFuture commodity prices in the valuation model are estimated by management based on their industryexperience, historic price trends and independent expert reports and commentaries.Discount ratesThe discount rates used are based on a weighted average cost of capital, and are real rates, before taxreflecting specific risks relating to the CGU.The values assigned to key assumptions are consistent with external information sources.The directors of the Company are of the view that, based on its assessment, there was no impairmentof goodwill as of 31 March 2011.In the opinion of the directors, any reasonably possible change in any of these assumptions wouldnot cause the aggregate carrying amount of the gold mining activities’ CGU to exceed the aggregaterecoverable amount of the gold mining activities’ CGU.21. InventoriesGroup2011 2010HK$’000HK$’000Raw materials 2,146 –Finished goods 4,669 3,2946,815 3,294Sino Prosper State Gold Resources Holdings Limited92