=+Ls Prior to 31 December 2003, SHINE owned a number of properties from which the company traded. On this date, SHINE sold one of the properties to BRICK Limited

(BRICK) for €20,000,000. Fhe carrying value of the property at the date of disposal was €4,000,000. On 31 December 2003, SHINE entered into a fixed rental agreement with BRICK whereby the property was leased back to SHINE under a ten-year operating lease at an annual rental of €2,500,000. The fair value of the property sold was €10,000,000, and the annual rentals for similar buildings in the area are approximately €/1,200,000.

. The book value of WISDOM’s inventory on 31 December 2002 and 31 December 2003 was $800,000 and $900,000 respectively. Inventory held at the end of 2002 and 2003 was purchased on I December in each year. WISDOM does not have any noncurrent assets on its books.

. The translated post-acquisition reserves of WISDOM at 31 December 2002 and 2003 were €9,900,000 and €11,100,000 respectively.

. Exchange rates have been as follows:

Us$ =

1 January 2000 2.0 1 December 2002 1.6 1 January 2003 psy)

1 December 2003 LS 31 December 2003 hfe»

Average 2003 13>