NewWorld Development Company Limited
FINANCIAL SECTION
174
27 DEFERRED TAXATION
(continued)
Deferred tax liabilities
Accelerated tax
depreciation
Valuation of
properties
Fair value
adjustments of properties
on acquisitions
Amortisation
of intangible
concession rights
Undistributed profits
of subsidiaries,
joint ventures and
associated companies
Other items
Total
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
HK$m
At beginning of the year
(2,623.3)
(2,635.6)
(1,423.4)
(1,295.1)
(1,907.4)
(1,437.6)
(2,260.9)
(2,378.8)
(769.9)
(643.3)
(192.2)
(289.4)
(9,177.1)
(8,679.8)
Translation differences
(1.7)
0.1
0.1
16.5
0.1
18.9
–
28.6
(0.1)
9.6
(16.0)
1.4
(17.6)
75.1
Acquisition of subsidiaries
(1.0)
(1.0)
–
–
(5.7)
(503.8)
–
–
(0.3)
–
–
–
(7.0)
(504.8)
Disposal of subsidiaries
29.0
–
–
–
–
–
–
–
–
–
1.3
–
30.3
–
Transfer to current tax payable
–
–
–
–
–
–
–
–
4.2
27.3
–
–
4.2
27.3
Transfer to non-current assets
classified as assets held for
sale
(24.1)
–
–
–
–
–
–
–
–
–
–
–
(24.1)
–
(Charged)/credited to
consolidated income
statement
(83.3)
13.2
(178.5)
(143.8)
43.7
15.1
117.5
89.3
(42.5)
(163.5)
(23.7)
(4.2)
(166.8)
(193.9)
(Charged)/credited to reserves
–
–
(7.5)
(1.0)
–
–
–
–
–
–
(58.0)
100.0
(65.5)
99.0
At end of the year
(2,704.4)
(2,623.3)
(1,609.3)
(1,423.4)
(1,869.3)
(1,907.4)
(2,143.4)
(2,260.9)
(808.6)
(769.9)
(288.6)
(192.2)
(9,423.6)
(9,177.1)
Deferred tax assets are recognised for tax loss carried forward to the extent that realisation of the related tax
benefit through the future taxable profits is probable. The Group has unrecognised tax losses of HK$17,961.5
million (2014: HK$16,198.2 million) to carry forward for offsetting against future taxable income. These tax losses
have no expiry dates except for the tax losses of HK$3,494.8 million (2014: HK$2,875.6 million) which will expire at
various dates up to and including 2020 (2014: 2019).
For the investment properties that are located outside Hong Kong, they are held by certain subsidiaries with a
business model to consume substantially all the economic benefits embodied in the investment properties over
time, rather than through sale, the presumption is rebutted and related deferred tax continues to be determined
based on recovery of use. For the remaining investment properties, the tax consequence is on the presumption
that they are recovered entirely by sale.
As at 30 June 2015, the aggregate amount of temporary differences associated with interests in subsidiaries and
joint ventures for which deferred tax liabilities have not been recognised totalled approximately HK$9.2 billion (2014:
HK$7.4 billion), as the directors consider that the timing of reversal of the related temporary differences can be
controlled and the temporary differences will not be reversed in the foreseeable future.
