Annual Report 2011 - Food Junction

78
Notes to the Financial Statements (cont’d)
31 December 2011
11. Other payables, deposits received and accruals
Annual Report
Group Company
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Other payables * 3,180 2,391 37 40
Accrued operating expenses 4,903 3,574 543 520
Deposits from tenants
Total other payables, deposits receivables
3,273 3,065 – –
and accruals 11,356 9,030 580 560
Add: Trade payables 6,014 5,874 – –
Total financial liabilities carried at
amortised cost 17,370 14,904 580 560
* This mainly relates to unpaid invoices from creditors of both food courts and food and beverage operations.
All other payables, deposits received and accruals are denominated in the Company’s and the
respective subsidiary companies’ functional currencies.
12. Deferred taxation
Group
2011 2010
$’000 $’000
Balance at beginning of year 913 747
(Credit)/charge for the year (209) 217
Overprovision in respect of prior years (31) (52)
Currency realignment 3 1
Adjustment to deferred tax arising from acquisition of subsidiary
company in prior year 18 –
Balance at end of year 694 913
Deferred taxation arises mainly from the excess of net book value over the tax written down value of
fixed assets.
13. Provision for reinstatement cost
Group
2011 2010
$’000 $’000
Balance at beginning of year 938 797
Provision during the year 203 100
Finance cost during the year 47 41
Utilised during the year (41) –
Translation differences (6) –
Balance at end of year 1,141 938
This provision is recognised for expected costs for dismantling, removal and restoration of fixed assets,
based on the best estimate of the expenditure with reference to past experience. It is expected that
these costs will be incurred after one year from the balance sheet date and would have been incurred
within 7 years of the balance sheet date. The provision is discounted using a current rate of 5% (2010:
5%) that reflects the risks specific to the liability. The increase in the provision of $47,376 (2010:
$40,658) due to the passage of time is recognised as finance costs.