FINANCIAL STATEMENTS - Mewah Group

MEWAH INTERNATIONAL INC.NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 201225. DEFERRED INCOME TAXESDeferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against currentincome tax liabilities and when the deferred income taxes relate to the same fiscal authority. The amounts, determined after appropriateoffsetting, were shown on the statement of financial position as follows:Group2012 2011US$’000 US$’000Deferred income tax assets- expected to be recovered within one year 661 -Deferred income tax liabilities- expected to be settled within one year (7,783) (5,781)- expected to be settled after one year (4,685) (9,099)(12,468) (14,880)(11,807) (14,880)Movement in deferred income tax account is as follows:2012 2011US$’000 US$’000Beginning of financial year (14,880) (15,453)Currency translation differences (506) 350Tax charged to- profit or loss 3,197 223- equity 382 -End of financial year (11,807) (14,880)84