Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

Notes to the Financial Statements Continued
13 Deferred tax (assets)/liabilities
58 Mandarin Oriental International Limited
Unremitted Provisions
earnings in and other
Accelerated tax Asset Pension associates & temporary
depreciation revaluation plans joint venture differences Losses Total
US$m US$m US$m US$m US$m US$m US$m
2008
At 1st January 37.5 60.0 5.6 1.9 (11.0 ) (13.8 ) 80.2
Exchange differences
Charged/(credited) to
consolidated profit
(0.7 ) (11.0 ) 0.1 (0.3 ) – 0.4 (11.5 )
and loss account 10.7 – – – (1.2 ) 2.1 11.6
Charged/(credited) to equity – (20.2 ) (4.6 ) – 0.1 – (24.7 )
Transfer to current tax asset – – – – 13.7 – 13.7
At 31st December 47.5 28.8 1.1 1.6 1.6 (11.3 ) 69.3
2007
At 1st January 25.6 37.3 4.3 1.6 (11.8 ) (11.5 ) 45.5
Exchange differences
Charged/(credited) to
consolidated profit
0.9 0.7 (0.1 ) 0.3 0.2 (0.2 ) 1.8
and loss account 11.0 – – – 0.6 (2.1 ) 9.5
Charged to equity – 22.0 1.4 – – – 23.4
At 31st December 37.5 60.0 5.6 1.9 (11.0 ) (13.8 ) 80.2
2008 2007
US$m US$m
Deferred tax assets (16.5 ) (27.5 )
Deferred tax liabilities 85.8 107.7
Deferred tax balances predominantly comprise non-current items.
69.3 80.2
Deferred tax assets of US$31.8 million (2007: US$29.7 million) have not been recognized in relation to unused tax
losses in subsidiaries as it is uncertain when these losses will be utilized.
Expiry dates for deferred tax assets not recognized in relation to unused tax losses:
2008 2007
US$m US$m
Within one year – 0.1
Between one and five years 6.9 0.3
Over five years 6.6 5.7
With no expiry dates 18.3 23.6
31.8 29.7
Deferred tax assets of US$7.3 million (2007: US$4.6 million) have not been recognized in relation to temporary
differences in subsidiaries.
Deferred tax liabilities on temporary differences associated with investments in subsidiary undertakings have not been
recognized as there is no current intention of remitting the retained earnings to the holding companies.