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 (continued)
The Company
Deferred income tax liabilities
Asset
Accelerated tax revaluation
depreciation surplus Other Total
$’000 $’000 $’000 $’000
2008
Beginning of financial year 723 4,574 1,409 6,706
(Credited)/Charged to
- income statement (19) (244) 19 (244)
- equity - 311 - 311
End of financial year 704 4,641 1,428 6,773
2007
Beginning of financial year 1,006 4,618 1,362 6,986
Effect of change in Singapore tax rate
- income statement (100) (78) (136) (314)
- equity - (384) - (384)
(Credited)/Charged to
- income statement (183) (187) 183 (187)
- equity - 605 - 605
End of financial year 723 4,574 1,409 6,706
The Group’s and Company’s deferred tax liabilities have been computed based on the corporate tax rate and
tax laws prevailing at balance sheet date. On 22 January 2009, the Singapore Minister for Finance announced a
reduction in corporate tax rate from 18% to 17% with effect from the year of assessment 2010. The Group’s and
Company’s deferred tax expense for the current financial year have not taken into consideration the effect of
the reduction in the corporate tax rate, which will be accounted for in the Group’s and Company’s deferred
tax expense in the year ending 31 December 2009. The Group’s and Company’s deferred tax liabilities as of 31
December 2008 will be reduced by approximately $1,584,000 and $376,000 respectively when the new corporate
tax rate of 17% is applied.
28. Share capital
No. of shares
Issued
Amount
share Share
capital capital
’000 $’000
2008 and 2007
Beginning and end of financial year 350,774 354,391
All issued shares are fully paid. There is no par value for these ordinary shares.
ORCHARD PARADE HOLDINGS LIMITED ANNUAL REPORT 2008 69