Rising Above

NOTES TO FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 20076. PRIOR YEAR ADJUSTMENTS (Continued)The details of the prior year adjustments are as follows:Group Company$’000 $’000Accumulated lossesAs at 1 January 2006, as previously reported (59,499) (29,807)Prior year adjustments:Recognised losses on construction contracts (32,943) (14,780)Allowance for doubtful receivables (3,256) -Allowance for unrecoverable advances to suppliers (1,154) -Stamp duty (148) -Income from sale of scrap materials 332 -Allowance for obsolescence of inventories (45) -Termination benefits (2,745) -Employee compensation (30) (30)Amortisation of intangible assets (244) -Foreign exchange loss, net (4,281) (979)Provision for liquidated damages on construction contracts (23,032) (23,032)Provision for warranties on construction contracts (5,043) (5,043)Provision for expected loss on construction contracts (2,164) (2,164)Withholding tax expense (3,351) (3,351)Interest expense (1,809) (1,104)Impairment of property, plant and equipment (2,992) (396)Income tax expense 2,180 -Deferred tax income 2,196 -Transfer to PRC statutory surplus reserve (2,628) -Transfer from revaluation reserve 235 -Share of profits by minority interests 7,575 -(73,347) (50,879)As at 1 January 2006, as restated (132,846) (80,686)ANNUAL REPORT 2007 63