At 31 December 2009
Charge to profit or loss for the year
At 31 December 2010
For the purposes of presentation in the consolidated statement of financial position, deferred tax assets and liabilities have been offset and shown under non-current liabilities.
At the end of the reporting period, the Group has unutilised tax losses of HK$2,768,418,000 (2009: HK$2,943,490,000) available for offset against future profits. A deferred tax asset has been recognised in respect of HK$1,384,322,000 (2009: HK$1,459,730,000) of such losses. No deferred tax asset has been recognised in respect of the remaining HK$1,384,096,000 (2009: HK$1,483,760,000) due to the unpredictability of future profit streams. Tax losses may be carried forward indefinitely.
At the end of the reporting period, the Group has deductible temporary difference of HK$684,737,000 (2009: HK$684,737,000) arising from impairment losses recognised in respect of hotel buildings. A deferred tax asset has been recognised in respect of HK$684,737,000 (2009: HK$577,547,000) of such deductible temporary difference. At 31 December 2009, no deferred tax asset has been recognised in respect of the remaining HK$107,190,000 due to the unpredictability of future profit streams.
At the end of the reporting period, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries operating in the USA, Australia and Canada for which deferred tax liabilities have not been recognised was HK$882,515,000 (2009: HK$718,664,000). No liability has been recognised in respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future.
Investment properties and property, plant and equipment HK$’000
Tax losses HK$’000
At 1 January 2009 Exchange differences (Credit) charge to profit or
loss for the year
The following are the major deferred tax liabilities (assets) recognised and movements thereon during the current and prior reporting years:
Annual Report 2010