Question 1 -15 December 2009

Hi Marie,

I’ve tried to break the answer down and have started with what I’d consider to be the easier aspects first, before briefly mentioning the ridiculously hard impairment at the end.

The $5m is from the fair value adjustment for land in Park from our standard (W2). Don’t try and calculate it the way they’ve done it.

The $4m is from the fair value adjustment for PPE in Fence from our standard (W2) and this is then depreciated to give the $0.53m reduction in PPE. Again do this in the same way as you would any normal net assets working.

The reduction of $6m is from part (iv) where the land is transferred to IP as it is held for capital appreciation purposes.

The revaluation of $4 comes from part (vi) being the increase from 8 million dinars at $1 = 2 dinars, to 12 million dinars at $1 = 1.5 dinars.

The decrease of $28m is from the impairment in part (vii), which is far too complicated and if I’d have been doing it would have just compared the $862m carrying value from the financial statements without any adjustments to $830m and used $32m. Yes it is slightly incorrect but don’t waste time on the ridiculously hard aspects of the question.

Hope this all helps.

Thanks

You’re welcome.