Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)38. Related party disclosuresAn entity or individual is considered a related party of the Group for the purposes of the fi nancial statements if: i) it possesses theability (directly or indirectly) to control or exercise signifi cant infl uence over the operating and fi nancial decisions of the Group or viceversa; or ii) it is subject to common control or common signifi cant infl uence.a) Sale and purchase of goods and serviceIn addition to those related party information disclosed elsewhere in the fi nancial statements, the following signifi canttransactions between the Group and related parties who are not members of the Group took place during the year on termsagreed between the parties:Related parties Sales of goods Purchase of goods Receiving of services Royalty income2006 2005 2006 2005 2006 2005 2006 2005$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Associated companies 2,776 3,251 64,540 60,500 – – 259 247Joint venture 24,645 8,836 – – – – – –Affi liated companies 28,277 51,774 26 1,202 – – – 150Other directors’ interest* – – – – – 157 – –* In 2005, a professional fee of $157,000 was paid to a spouse of Director for providing consultancy service to theGroup.b) Compensation of key management personnelGroup2006 2005$’000 $’000Short-term employee benefi ts 2,303 6,953Central Provident Fund contributions 66 71Directors’ fees 148 198Share-based compensation expense – 18Total compensation paid to key management personnel 2,517 7,240Comprise amounts paid to:- Directors of the Company 1,955 6,705- Other key management personnel 562 5352,517 7,240The remuneration of key management personnel are determined by the remuneration committee having regards to theperformance of individuals and market trends.Notes to the Financial Statements 154Annual Report 2006