Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)7. Revaluation reserveThe revaluation reserve records the adjustment to the fair value of subsidiaries’ identifi able net assets at the date of acquisitionsattributable to previously held ownership interests.Group2006 2005$’000 $’000(Restated)At beginning of year as previously stated – –Fair value adjustments to the identifi able assets and liabilities of a subsidiary acquired in 2005 5,237 –At beginning of year as restated 5,237 –Fair value adjustments to the identifi able assets and liabilities of a subsidiary acquired in 2005(Note 11di) – 5,237At end of year 5,237 5,2378. Premium on purchase of minority interests’ sharesWith effect from the fi nancial year ended 31 December 2005, the Group adopted the entity concept method to account for theacquisitions of shares from minority shareholders of subsidiaries. Any acquisition is treated as being a transaction between theowners and the difference between the purchase consideration and the share of the assets and liabilities acquired from minorityinterests of subsidiary is recorded as premium on purchase of minority interests’ shares.Group2006 2005$’000 $’000(Restated)At beginning of year as previously stated (953) –Fair value adjustments to the identifi able assets and liabilities of a subsidiary acquiredin 2005 (12) –At beginning of year as restated (965) –Goodwill arising from purchase of minority interests’ shares inprior years (net of accumulated amortisation up to 2005) (Note 13) – (571)Goodwill arising from purchase of minority interests’ sharesduring the year (Note 11cii , Note 11dii) (6,068) (505)Negative goodwill arising from purchase of minority interests’share during the year (Note 11dii) – 111At end of year (7,033) (965)Notes to the Financial Statements 110Annual Report 2006