IN ADDITION TO THE COSTS OF THE SERVICES AND THE LEASE M...

4. In addition to the costs of the services and the lease mentioned (as referred to in notes 1 and 2 above) thefollowing items in cost of sales are relevant: – The cost of sales for Minh Tam’s trading activities accounted for 50% of the total cost of sales. – Minh Tam purchased various tools and instruments for assembling and handling parts of the equipment.These tools and instruments did not qualify as depreciable fixed assets under Vietnamese accountingstandards. In 2012 these purchases amounted to VND3,300 million (inclusive of VAT at 10%). Minh Tamhas expensed all of these purchase costs in the income statement, but for tax declaration purposes wantsto amortise the tools and instruments in accordance with current regulations.– The salaries for the Board of Directors comprise VND7,000 million paid to members who are directlyinvolved in the management of the company’s operations, and VND2,000 million to members who were notinvolved in that management.– An accrual has been made for occasional bonuses for Lunar New Year Holiday of VND5,500 million. Thesebonuses were not provided for in either the Collective Labour Contract or any other documents, except for astatement in the Labour Handbook stating that ‘the management will consider paying bonuses dependingon the business operations results’. There is no evidence that the bonus payments will be made before thetax declaration deadline.