Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)13. Intangible assets (cont’d)ClubmembershipCompany 2006 2005$’000 $’000CostAt beginning and end of year 123 123Accumulated amortisation AmortisationAt beginning of year – –Amortisation for the year 39 –At end of year 39 –Net carrying amountAt end of year 84 123Impairment lossImpairment loss on goodwill was recognised in the following line item of the profi t and loss account as follows:Group2006 2005$’000 $’000Other operating expenses (Note 32) – 2,841 11In 2005, an impairment loss of $2,841,000 was recognised to write-off the net carrying amount of goodwill attributable to theUSB Inc.’s Guam, Korean and Japanese market segments due to an expected reduction in sales volume as a result of reducedcustomer demand.Impairment testing of goodwillGoodwill acquired through business combinations has been allocated to four individual cash-generating units for impairment testingas follows:• Singapore segment;• Australia segment;• USB segment; and• Malaysia segmentNotes to the Financial Statements 130Annual Report 2006