Annual Report 2012 - Dialog

Annual Report 2012 l Dialog Axiata PLC l 113
(c) Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax
benefit through future taxable profits is probable. The unrecognise deferred income tax assets in respect of losses
can be carried forward against future taxable income.
(d) The Company opted for 2% revenue based tax with effect from the year 2013 at the expiration of 15 year tax
holiday period, which is an option given in the investment agreement entered into between the Company and
the Board of Investment of Sri Lanka (BOI). Subsequent to the approval of the BOI on 20 March 2012, selection
of revenue based tax option has been notified to and acknowledged by the Department of Inland Revenue on 7
August 2012. Accordingly, the deferred tax liability of Rs. 2,277,016,844 has been reversed to the statement of
comprehensive income.
24 Retirement benefit obligation
The movement in the retirement benefit obligation over the year is as follows:
Group Company
2012 2011 2012 2011
At 1 January 443,731 390,635 403,482 358,854
Current service cost 71,609 58,709 57,100 51,052
Interest cost 48,183 40,263 44,383 37,680
Charged to profit and loss of the statement of
comprehensive income 119,792 98,972 101,483 88,732
Actuarial losses / (gains) 8,762 (18,927) 219 (17,748)
Charged to other comprehensive income of the statement
of comprehensive income 8,762 (18,927) 219 (17,748)
Acquisition through business combination (Note 36) 94,476 Nil Nil Nil
Transfers to associate Nil (6,885) Nil (6,885)
Benefits paid (79,731) (20,064) (23,799) (19,471)
At 31 December 587,030 443,731 481,385 403,482
This obligation is not externally funded.
The gratuity liability of the Company is based on the actuarial valuation performed in December 2012 by Actuaries, Messrs
Actuarial & Management Consultants (Private) Limited. The principal actuarial valuation assumptions used were as follows: