FINANCIAL STATEMENTS - Mewah Group

MEWAH INTERNATIONAL INC.NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 201225. DEFERRED INCOME TAXES (CONTINUED)Group (continued)Deferred income tax assets2012Unutilised taxlossesUnutilisedreinvestmentallowanceUnrealised loss onderivative financialinstruments Others TotalUS$’000 US$’000 US$’000 US$’000 US$’000Beginning of financial year 110 8,166 4,898 1,587 14,761Currency translationdifferences 4 330 151 80 565Credited/(charged) to- profit or loss 561 3,962 (1,679) 2,270 5,114End of financial year 675 12,458 3,370 3,937 20,4402011Beginning of financial year 45 4,611 6,572 991 12,219Currency translationdifferences (9) (232) (112) (38) (391)Credited/(charged) to- profit or loss 74 3,787 (1,562) 634 2,933End of financial year 110 8,166 4,898 1,587 14,761Deferred income tax assets are recognised for tax losses and capital allowances carried forward to the extent that realisation of the relatedtax benefits through future taxable profits is probable. The Group has unrecognised tax losses of US$9,370,000 (2011: US$4,960,000) atthe statement of financial position date which can be carried forward and used to offset against future taxable income subject to meetingcertain statutory requirements by those companies with unrecognised tax losses and capital allowances in their respective countries ofincorporation. The tax losses have no expiry date.86