08:55     SOLOMON SYSTECH<02878> - Results Announcement (5)                   

                                                                              
    (m)     Deferred taxation                                                 
                                                                              
            Deferred taxation is provided in full, using the liability method,
    on temporary differences arising between the tax bases of assets and      
    liabilities and their carrying amounts in the accounts.  Taxation rates   
    enacted or substantively enacted by the balance sheet date are used to    
    determine deferred taxation.                                              
                                                                              
            Deferred tax assets are recognised to the extent that it is       
    probable that future taxable profit will be available against which the   
    temporary differences can be utilised.                                    
                                                                              
    Deferred taxation is provided on temporary differences arising on         
    investments in subsidiaries and associated companies, except where the    
    timing of the reversal of the temporary difference can be controlled and  
    it is probable that the temporary difference will not reverse in the      
    foreseeable future.                                                       
                                                                              
    (n)     Revenue recognition                                               
                                                                              
    Revenue from the sale of products is recognised on the transfer of risks  
    and rewards of ownership, which generally coincides with the time of      
    shipment/delivery.                                                        
                                                                              
    Interest income is recognised on a time proportion basis, taking into     
    account the principal amounts outstanding and the interest rates          
    applicable.                                                               
                                                                              
    (o)     Translation of foreign currencies                                 
                                                                              
            Transactions in foreign currencies are translated at exchange     
    rates ruling at the transaction dates.  Monetary assets and liabilities   
    expressed in foreign currencies at the balance sheet date are translated  
    at rates of exchange ruling at the balance sheet date.  Exchange          
    differences arising in these cases are dealt with in the profit and loss  
    account.                                                                  
                                                                              
            The balance sheets of subsidiaries and associated company         
    expressed in foreign currencies are translated at the rates of exchange   
    ruling at the balance sheet date whilst the profit and loss accounts are  
    translated at an average rate.  Exchange differences are dealt with as a  
    movement in reserves.                                                     
                                                                              
                                                                              
    (p)     Segment reporting                                                 
                                                                              
            In accordance with the Group's internal financial reporting the   
    Group has determined that business segment be presented as the primary    
    reporting format and geographical as the secondary reporting format.      
                                                                              
            Unallocated costs represent corporate expenses.  Segment assets   
    consist primarily of intangible assets, fixed assets, inventories,        
    receivables and operating cash.  Segment liabilities comprise operating   
    liabilities and exclude items such as taxation.  Capital expenditures     
    comprise additions to intangible assets and fixed assets, including       
    additions resulting from acquisitions through purchases of subsidiaries.  
                                                                              
            In respect of geographical segment reporting, sales are based on  
    the country in which the customer is located and total assets and capital 
    expenditures are where the assets are located.                            
                                                                              
    For more details, please refer to the press announcement today.