Annual Report 2011 - Mandarin Oriental Hotel Group

60 Mandarin Oriental International Limited
Notes to the Financial Statements Continued
13 Deferred tax (assets)/liabilities
Provisions
Accelerated Unremitted and other
tax Fair value Employee earnings in temporary
depreciation gains/losses Losses benefits associates differences Total
US$m US$m US$m US$m US$m US$m US$m
2011
At 1st January 58.7 (3.4 ) (11.2 ) 2.9 1.6 0.5 49.1
Exchange differences – – – – (0.2 ) – (0.2 )
Charged to profit and loss
Credited to other
1.9 – 6.5 0.1 – 0.1 8.6
comprehensive income – (0.1 ) – (1.0 ) – – (1.1 )
At 31st December 60.6 (3.5 ) (4.7 ) 2.0 1.4 0.6 56.4
Deferred tax assets – (3.5 ) (4.7 ) (0.1 ) – (0.2 ) (8.5 )
Deferred tax liabilities 60.6 – – 2.1 1.4 0.8 64.9
60.6 (3.5 ) (4.7 ) 2.0 1.4 0.6 56.4
2010
At 1st January 53.3 (2.9 ) (12.2 ) 2.6 1.4 1.2 43.4
Exchange differences
Charged/(credited) to profit
1.2 – 0.1 (0.1 ) 0.2 0.1 1.5
and loss
(Credited)/charged to other
4.2 – 0.9 0.1 – (0.7 ) 4.5
comprehensive income – (0.5 ) – 0.3 – (0.1 ) (0.3 )
At 31st December 58.7 (3.4 ) (11.2 ) 2.9 1.6 0.5 49.1
Deferred tax assets – (3.4 ) (11.2 ) (0.1 ) – (0.3 ) (15.0 )
Deferred tax liabilities 58.7 – – 3.0 1.6 0.8 64.1
58.7 (3.4 ) (11.2 ) 2.9 1.6 0.5 49.1
Deferred tax balances predominantly comprise non-current items. Deferred tax assets and liabilities are netted when the
taxes relate to the same taxation authority and where offsetting is allowed.
Deferred tax assets of US$50.5 million (2010: US$41.8 million) arising from unused tax losses of US$216.3 million
(2010: US$179.7 million) have not been recognized in the financial statements.
Expiry dates for deferred tax assets not recognized in relation to unused tax losses:
2011 2010
US$m US$m
Within one year 3.9 0.4
Between one and five years 7.6 14.3
Over five years 16.3 9.3
With no expiry dates 22.7 17.8
50.5 41.8
Deferred tax assets of US$5.7 million (2010: US$3.3 million) have not been recognized in relation to temporary
differences in subsidiaries.
Deferred tax liabilities of US$0.4 million (2010: US$0.4 million) on temporary differences associated with investments
in subsidiaries of US$3.8 million (2010: US$3.8 million) have not been recognized as there is no current intention of
remitting the retained earnings to the holding companies.