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46
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
22. ACCRUED LIABILITIES AND PROVISIONS
Group Company
2012 2011 2012 2011
US$’000 US$’000 US$’000 US$’000
Markeng accruals 8,777 10,289 1,256 663
Payroll accruals 9,503 11,370 6,506 7,328
Warranty (Note (a)) 974 1,467 972 1,462
Restructuring (Note (b)) 1,490 4,317 281 1,599
Royalty accruals 2,365 2,995 435 989
Legal claims and fees (Note (c)) 6,143 6,276 5,900 5,900
Deposits and other creditors 4,025 4,548 2,018 1,737
Subcontract accruals 5,200 5,200 5,200 5,200
Other accruals 14,890 14,200 2,124 3,790
53,367 60,662 24,692 28,668
(a) Warranty
The warranty period for the bulk of the products typically ranges between 1 to 2 years. The product warranty provision
reects management’s best estimate of probable liability under its product warranties. Management determines the warranty
provision based on known product failures (if any), historical experience, and other currently available evidence.
Movements in provision for warranty are as follows:
Group Company
2012 2011 2012 2011
US$’000 US$’000 US$’000 US$’000
Beginning of nancial year 1,467 2,784 1,462 2,779
Provision (wrien back) made (Note 4) (370) (606) (367) (606)
Provision ulised (123) (711) (123) (711)
End of nancial year 974 1,467 972 1,462
(b) Restructuring
Please refer to Note 4 for the nature of restructuring provision.
Movements in provision for restructuring are as follows:
Group Company
2012 2011 2012 2011
US$’000 US$’000 US$’000 US$’000
Beginning of nancial year 4,317 1,791 1,599 –
Provision made – 2,940 – 1,599
Provision ulised (2,782) (155) (1,318) –
Provision wrien back (45) (259) – –
End of nancial year 1,490 4,317 281 1,599
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2012