perspective perspective - ChartNexus

9 TAX EXPENSE (cont’d)
129
Group Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Deferred tax
Origination and reversal of temporary differences (1,002) 119 685 509
(Over)/underaccrual in prior financial years (net) (1,394) 349 (55) 4
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(2,396) 468 630 513
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3,131 9,313 6,861 4,189
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The numerical reconciliation between the average effective tax rate of the Group and Company and the Malaysian tax rate is as
follows:
Group Company
2005 2004 2005 2004
% % % %
Malaysian tax rate
Tax effects of:
28 28 28 28
- expenses not deductible for tax purposes 3 2 1 –
- income not subject to tax – (1) – –
- current financial year’s tax loss not recognised 10 5 – –
- lower tax rate resulting from restatement
of land costs for tax purposes (16) (8) – –
- utilisation of previously unrecognised tax losses – (3) – –
- (over)/underaccrual of deferred tax in prior financial years (4) 1 – –
- (over)/underaccrual of current tax in prior financial years (14) (1) – 1
- others 1 4 – –
––––––––––––––––––– ––––––––––––––––––– ––––––––––––––––––– –––––––––––––––––––
Average effective tax rate 8 27 29 29
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Included in tax expense of the Group and Company are tax savings from utilisation of current financial year’s tax losses
amounting to RM2,658,000 (2004: RM2,310,763) and RM2,658,000 (2004: RM2,310,763) respectively.
These tax savings arose from the utilisation of tax losses, from one business source or investment income against taxable profit
from a different business source within the same company in the same financial year.
10 EARNINGS AND NET TANGIBLE ASSETS PER SHARE
(a) Earnings per share
Basic earnings per share
Basic earnings per share of the Group is calculated by dividing the net profit for the financial year by the weighted average
number of ordinary shares in issue during the financial year, excluding ordinary shares acquired by the Company and held
as treasury shares.
2005 2004
Net profit for the financial year (RM’000) 29,211 20,565
Weighted average number of ordinary shares in issue (’000) 232,006 232,046
Basic earnings per share (sen) 12.6 8.9
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UNITED MALAYAN LAND BHD