ANNUAL REPORT 2014
89
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
For the financial year ended 31 December 2014
20. DEFERRED INCOME TAXATION
(CONTINUED)
The movements in the deferred income tax account are as follows:
The Group
The Company
2014
$’000
2013
$’000
2014
$’000
2013
$’000
Beginning of financial year
53,085
48,687
–
–
Tax charged to fair value reserve:
- changes in fair value
10,402
4,417
–
–
Tax charged/(credited) to profit or loss:
- others
93
(53)
–
–
93
(53)
–
–
Currency translation differences
1
34
–
–
End of financial year
63,581
53,085
–
–
Deferred income tax assets are recognised for tax losses carried forward to the extent that realisation of the related
tax benefits through future taxable profits is probable. The Group has unrecognised deferred income tax assets arising
from tax losses of $22.5 million (2013: $22.7 million) at the end of the reporting period. These tax losses can be
carried forward and used to offset against future taxable income subject to meeting certain statutory requirements
by those companies in their respective countries of incorporation. These tax losses have no expiry date except for
an amount of $135,000 which will expire between 2016 and 2019.
Deferred income tax liabilities of $118,000 (2013: $170,000) have not been recognised for the withholding and
other taxes that will be payable on the earnings of overseas subsidiaries when remitted to the holding company.
These undistributed profits amount to $824,000 (2013: $1,230,000) at the balance sheet date.
The Group’s and Company’s deferred tax liabilities have been computed based on the corporate tax rate and tax
laws prevailing at the end of the reporting period.
