notes to the financial statements - Far East Orchard Limited

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2008
27. Deferred income taxes
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current
income tax assets against current income tax liabilities and when the deferred income taxes relate to the same
fiscal authority. The following amounts, determined after appropriate offsetting, are shown on the balance sheets
as follows:
The Group The Company
2008 2007 2008 2007
$’000 $’000 $’000 $’000
Deferred income tax assets (223) (1,700) - -
Deferred income tax liabilities
- to be settled within one year 331 455 315 357
- to be settled after one year 28,189 25,586 6,458 6,349
Movement in deferred income tax account (net) is as follows:
28,520 26,041 6,773 6,706
The Group The Company
2008 2007 2008 2007
$’000 $’000 $’000 $’000
Beginning of financial year 24,341 13,765 6,706 6,986
Effect of change in Singapore tax rate
- income statement - (437) - (314)
- equity [Note (29)(b)(i)] - (940) - (384)
Tax charged/(credited) to:
- income statement 863 (385) (244) (187)
- equity [Note (29)(b)(i)] 3,093 12,338 311 605
End of financial year 28,297 24,341 6,773 6,706
The deferred income taxes taken to equity during the year are as follows:
The Group The Company
2008 2007 2008 2007
$’000 $’000 $’000 $’000
Asset revaluation reserve in
shareholders’ equity
- land and buildings [Note 29(b)(i)] 3,093 11,398 311 221
The Group has unrecognised tax losses of approximately $88,874,500 (2007: $88,429,800) which can be carried
forward and used to offset against future taxable income subject to meeting certain statutory requirements by
those companies with unrecognised tax losses and capital allowances in their respective countries of incorporation.
These tax losses have no expiry date.
ORCHARD PARADE HOLDINGS LIMITED ANNUAL REPORT 2008 67