Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)13. Intangible assets (cont’d)Impairment testing of goodwill (cont’d)Carrying amount of goodwill allocated to each of the Group’s cash-generating unit is as follows:Goodwill on consolidation2006 2005$’000 $’000(Restated)Singapore segment 10,373* 10,373Australia segment 9,604* 9,604USB segment 1,078* 1,078Malaysia segment 1,018 # –22,073 21,055* During the year, the purchase price allocation to goodwill, intangible assets (excluding goodwill) and other assets relating to theacquisition of Global Active Limited in 2005 was fi nalised.#The purchase price allocation to goodwill, intangible assets (excluding goodwill) and other assets relating to the acquisitions ofVictoria House Sdn Bhd and Nutri-Active Sdn Bhd in 2006 is currently being assessed and is expected to be fi nalised within 12months from the date of acquisition.The recoverable amount of a cash-generating unit is determined based on value-in-use calculation, using cash fl ow projectionsbased on fi nancial budgets approved by management covering a fi ve year period. The discount rate applied to the cash fl owprojections is 12% (2005: 12% to 20%). The weighted average growth rates used are consistent with the average growth rate of theindustry.14. Long-term investmentGroup and Company2006 2005$’000 $’000Unquoted investment (Available-for-sale)Equity shares (unquoted), at cost 930 –Unquoted shares are denominated in Japanese Yen. Unquoted shares stated at cost have no market prices and the fair valuecannot be reliably measured using valuation techniques.Notes to the Financial Statements 131Annual Report 2006