UOB Annual Report 2002 - United Overseas Bank

Notes to the Financial Statements
for the financial year ended 31 December 2002
14 Tax (continued)
(b) Deferred tax asset is recognised for tax losses carried forward to the extent that the realisation of the related tax benefits through
future taxable profits is probable. The Group has not recognised the deferred tax asset in respect of tax losses of $135,518,000
(2001: $99,829,000) which can be carried forward to offset against future taxable income subject to meeting certain statutory
requirements of the relevant tax authorities. These tax losses have no expiry date except for the amount of $110,707,000 (2001:
$78,841,000) which will expire between the year 2003 and 2007 (2001: 2002 and 2006).
As at 31 December 2002, the Group has unremitted earnings of overseas branches and subsidiaries amounting to $1,371,262,000
(2001: $1,562,223,000). Deferred tax liability has not been established for withholding and other taxes that would be payable
on these unremitted earnings as such amounts are permanently reinvested or remain invested offshore.
The movements in the deferred tax assets and liabilities of the Group and the Bank (prior to the offsetting of balances within the
same tax jurisdiction) during the financial year are as follows:
Deferred Tax Liabilities
2002 2001
Fair Value of
Fair Value
Depreciable
of Depreciable
Properties
Properties
Accelerated Acquired in Accelerated Acquired in
Tax Business Tax Business
Depreciation Combination Others Total Depreciation Combination Others Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
The Group
At 1 January
As previously
reported 52,621 – 10,512 63,133 44,785 – 4,283 49,068
Prior year
adjustment
resulting
from adoption
of revised SAS 12 – 53,087 – 53,087 – – – –
As restated 52,621 53,087 10,512 116,220 44,785 – 4,283 49,068
Currency
translation
differences 80 – 44 124 210 – 35 245
Acquisition of
subsidiaries – – – – 9,450 53,087 3,814 66,351
Charged/(credited)
to income
statement (1,391) (3,561) (1,483) (6,435) (1,824) – 2,380 556
At 31 December 51,310 49,526 9,073 109,909 52,621 53,087 10,512 116,220
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