NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
Financial Statements
126
COSCO Corporation (Singapore) Limited
29.
Deferred income taxes
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current
income tax assets against current income tax liabilities and when the deferred income taxes relate to the
same fiscal authority. The amounts, determined after appropriate offsetting, are shown on the balance
sheets as follows:
The Group
The Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Deferred income tax assets:
- To be recovered within one year
260,924
218,756
–
–
- To be recovered after one year
6,977
6,456
–
–
267,901
225,212
–
–
Deferred income tax liabilities:
- To be settled after one year
837
528
704
398
Movement in the deferred income tax account is as follows:
The Group
The Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Beginning of financial year
(224,684)
(194,482)
398
7,302
Change in tax rate
–
3,299
–
–
Currency translation differences
(6,794)
(13,109)
12
137
Deferred tax (credited)/charged to
profit or loss
(35,669)
(20,361)
294
(7,041)
Deferred tax charged/(credited) to
other comprehensive income
(Note 31(b)(v))
83
(31)
–
–
End of financial year
(267,064)
(224,684)
704
398
Deferred income tax assets are recognised for tax losses, provisions and accruals carried forward to the
extent that realisation of the related tax benefits through future taxable profits is probable. The Group has
unrecognised tax losses of $32,091,000 (2013: $20,579,000) for which no deferred tax asset has been
recognised at the balance sheet date which can be carried forward and used to offset against future
taxable income subject to meeting certain statutory requirements by those companies with unrecognised
tax losses in their respective countries of incorporation. The unrecognised tax losses will mainly expire in
2018.
