NOTES TO THE ACCOUNTS (CONTINUED) 11 DIRECTORS’ AND SENIOR MANAGEMENT’S EMOLUMENTS (CONTINUED) (b) FIVE HIGHEST PAID INDIVIDUALS The five individuals whose emoluments were the highest in the Group for the year include two (2010: two) directors whose emoluments are reflected in the analysis presented above. The emoluments payable to the remaining three individuals (2010: three) during the year are as follows: 104 LI & FUNG LIMITED | ANNUAL REPORT <strong>2011</strong> <strong>2011</strong> 2010 US$’000 US$’000 Basic salaries, housing allowances, other allowances and benefits-in-kind 4,053 2,405 Discretionary bonuses 5,951 4,238 Contributions to pension scheme 27 4 10,031 6,647 Number of individuals Emolument bands <strong>2011</strong> 2010 US$1,858,974 – US$1,923,077 (equivalent to HK$14,500,001 – HK$15,000,000) – 1 US$2,051,282 – US$2,115,385 (equivalent to HK$16,000,001 – HK$16,500,000) – 1 US$2,500,000 – US$2,564,103 (equivalent to HK$19,500,001 – HK$20,000,000) 1 – US$2,628,205 – US$2,692,308 (equivalent to HK$20,500,001 – HK$21,000,000) – 1 US$3,461,539 – US$3,525,641 (equivalent to HK$27,000,001 – HK$27,500,000) 1 – US$3,974,359 – US$4,038,462 (equivalent to HK$31,000,001 – HK$31,500,000) 1 – There is no amount paid or payable to the directors as inducement to join the Group and compensation for loss of office as directors.
12 INTANGIBLE ASSETS Brand Buying agency and license Customer NOTES TO THE ACCOUNTS (CONTINUED) The Group <strong>Li</strong>censor Computer software Trademarks and system and development Goodwill licenses agreements relationships relationships brandnames costs Others Total US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 At 1 January <strong>2011</strong> Cost 4,142,831 376,567 60,867 258,085 71,999 92,451 57,380 1,900 5,062,080 Accumulated amortization – (115,747) (8,031) (25,332) (9,358) (7,429) (13,475) (542) (179,914) Net book amount 4,142,831 260,820 52,836 232,753 62,641 85,022 43,905 1,358 4,882,166 Year ended 31 December <strong>2011</strong> Opening net book amount 4,142,831 260,820 52,836 232,753 62,641 85,022 43,905 1,358 4,882,166 Exchange differences Acquisition of businesses/subsidiaries (19,953) (207) – (233) (2,114) (190) (739) – (23,436) (Note 31) Adjustments to purchase consideration 1,360,849 34,801 – 213,168 45,079 60,601 4 300 1,714,802 and net asset valuei Adjustments to purchase consideration for acquisitions completed prior to 25,820 16,291 33,100 (42,822) – (3,200) – – 29,189 1 January 2010ii 5,536 – – – – – – – 5,536 Additions Disposal of businesses/subsidiary – 68,911 – – – – 4,832 – 73,743 (Note 30(c)) – – – (157) – – – – (157) Disposals – – – – – – (367) – (367) Amortization – (97,394) (6,580) (25,897) (9,234) (9,804) (6,205) (363) (155,477) Closing net book amount 5,515,083 283,222 79,356 376,812 96,372 132,429 41,430 1,295 6,525,999 At 31 December <strong>2011</strong> Cost 5,515,083 495,605 93,967 427,925 114,904 149,657 61,037 2,200 6,860,378 Accumulated amortization – (212,383) (14,611) (51,113) (18,532) (17,228) (19,607) (905) (334,379) Net book amount 5,515,083 283,222 79,356 376,812 96,372 132,429 41,430 1,295 6,525,999 i These are adjustments to purchase considerations and net asset values related to certain acquisitions of businesses/subsidiaries in the prior year, which were previously determined on a provisional basis. During the measurement period, the Company recognized adjustments to the provisional amounts as if the accounting for the business combination had been completed at the acquisition date. Save as adjustments to goodwill and other intangible assets arising from business combination stated above, there were corresponding net adjustments to purchase consideration of US$8,425,000 and other assets/liabilities of approximately US$20,764,000. ii For acquisitions completed prior to 1 January 2010, the effective date of HKFRS 3 (Revised) “Business Combination” being adopted by the Group, the changes in accrued contingent considerations determined based on post-acquisition performance were made against goodwill. LI & FUNG LIMITED | ANNUAL REPORT <strong>2011</strong> 105