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Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-

maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identifed as the management committee that makes strategic decisions.

The Group has adopted FRS 8 “Operating segments” from 1 January 2010. FRS 8 replaces FRS 114 “Segment reporting” and

is applied retrospectively. The adoption of FRS 8 did not result in any change in the operating segments previously reported. Accordingly, there is no change in the allocation of goodwill to groups of cash-generating units on a segment level.

Estimates and judgements are continually evaluated by Directors and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by defnition, rarely equal the related actual results. To enhance the information content of the estimates, certain key variables that are anticipated to have material impact to the Group’s results and fnancial position are tested for sensitivity to changes in the underlying parameters. The estimates and assumptions that have a signifcant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fnancial year are outlined below. (i) Estimated impairment of goodwill

The Group tests goodwill for impairment annually whether goodwill has suffered any impairment, in accordance with its

accounting policy stated in Note 4(f). More regular reviews are performed if events indicate that this is necessary.

The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. The calculations

require the use of estimates as set out in Note 24.

There will be no impairment to the carrying amount of goodwill unless the estimated gross margin reduces from 29% to 25%

(2009: 29% to 25%).

There will be no impairment to the carrying value of goodwill unless the pre-tax discount rate increases from 12% to 36%

(2009: 12% to 23%).

The Group is subject to income taxes in numerous jurisdictions. Signifcant judgement is required in determining the worldwide

provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the fnal tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Deferred tax assets is recognised to the extent that it is probable that future taxable proft will be available against which the temporary differences can be utilised. This involves judgement regarding the future fnancial performance of the particular entity in which the deferred tax asset has been recognised.

If the projected growth rate applied in the proft projections of the respective entities in the Group do not fall below 10% (2009:

10%) from management’s estimate as at fnancial year end, the deferred tax assets recognised will remain fully recoverable.