FINANCIAL STATEMENTS - Mewah Group

MEWAH INTERNATIONAL INC.NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 201221. INTANGIBLE ASSETComposition:GoodwillGroup2012 2011US$’000 US$’000CostBeginning of financial year 5,718 5,846Currency translation differences 112 (128)End of financial year 5,830 5,718Accumulated impairmentBeginning of financial year (2,529) -Impairment charge (Note 7) (3,161) (2,717)Currency translation differences (140) 188End of financial year (5,830) (2,529)Net book value - 3,189Impairment test for goodwillAs at 31 December 2011, goodwill was wholly allocated to the Molly CGU. Molly CGU consist of Molly Foods bvba, a company incorporatedin Belgium which through its wholly owned subsidiary, Bloom Land Enterprises Limited (“Bloomland”), a company incorporated in HongKong, owns 100% of BeCe S.à.r.l. (“BeCe”), a company incorporated in Togo. Molly CGU is involved primarily in importing commodities,including edible oils and fats products produced by the Group, for sale in West Africa. Please also see Note 35 for a subsequent eventinvolving Molly CGU.Following continued tough market conditions, slowed demands resulting in high inventory carry cost coupled with losses due to falling pricesand expectations of the market developments, management determined that the recoverable amount of the CGU is below the carrying value.An impairment charge of US$3,161,000 (2011: US$2,717,000) was included in the income statement within “other losses/(gains)” (Note 7).22. TRADE PAYABLESGroup2012 2011US$’000 US$’000Trade payables- Related parties 890 1,007- Non-related parties 242,613 209,456243,503 210,46380