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135
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
21 Deferred Income Tax
(Continued)
DEFERRED INCOME TAX ASSETS/(LIABILITIES)
(Continued)
Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the
related benefit through the future taxable profits is probable. As at 31 December 2011, there were unrecognised
tax losses of approximately RMB67,486,000 (2010: RMB22,855,000) as there are uncertainties as to whether
assessable profits will be available in the foreseeable future to utilise such tax losses. These tax losses will expire in
the following years:
RMB’000
2011
2010
2011
—
3,024
2012
2,358
2,358
2013
2,795
4,487
2014
3,536
5,099
2015
7,887
7,887
2016
50,910
—
67,486
22,855
Pursuant to the relevant PRC corporate income tax rules and regulations, withholding tax is imposed on dividends
declared in respect of profits earned by the Group’s PRC subsidiaries from 1 January 2008. Deferred income tax
liabilities of RMB553,426,000 (2010: RMB364,719,000) have not been provided for in these consolidated financial
statements in respect of temporary differences attributable to accumulated profits of the Group’s PRC subsidiaries as
the Group controls the dividend policy of these PRC subsidiaries it is probable that these temporary differences will
not be reversed in the foreseeable future.
22 Obligations under Finance Lease
GROUP
RMB’000
2011
2010
Gross finance lease liabilities — minimum lease payments:
No later than 1 year
920
920
Later than 1 year and no later than 5 years
3,887
3,749
Later than 5 years
44,720
45,778
49,527
50,447
Future finance charges on finance leases
(31,263)
(32,347)
Present value of finance lease liabilities
18,264
18,100
The present value of finance lease liabilities is as follows:
No later than 1 year
868
868
Later than 1 year and no later than 5 years
3,166
3,059
Later than 5 years
14,230
14,173
18,264
18,100
Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default.