Annual Report 2011 - Food Junction

Notes to the Financial Statements (cont’d)
31 December 2011
19. Income tax (expense)/credit
Major components of income tax expense/(credit)
The major components of income tax expense/(credit) for the year ended 31 December 2011 and
2010 are:
Group Company
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Current taxation
- current year 1,346 666 53 106
(over)/under provision in respect of prior
years (36) (175) (78) 17
Deferred taxation
- current year (209) 217 – –
- overprovision in respect of prior years (31) (52) – –
Relationship between income tax expense/(credit) and accounting profit
1,070 656 (25) 123
The reconciliation of the income tax expense/(credit) and that of accounting profit multiplied by the
applicable tax rate is as follows:
Group Company
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Profit before taxation
Tax at domestic rates applicable to profits
in the countries where the Group
1,986 3,329 1,454 2,711
operates
Tax effect of:
Expenses not deductible in determining
145 611 247 461
taxable profit 171 178 6 15
Partial tax exemption and tax relief (103) (78) (26) –
Non-taxable item
(Over)/under provision in respect of prior
(13) (7) (170) (370)
years (67) (227) (78) 17
Deferred tax asset not recognised 1,000 185 – –
Others (63) (6) (4) –
1,070 656 (25) 123
As at 31 December 2011, the Group has tax losses of approximately $3,924,000 (2010: $2,550,000)
that are available for offset against future taxable profits of the companies in which the losses arose,
for which no deferred tax asset is recognised due to uncertainty of its recoverability. The use of these
tax losses is subject to the agreement of the tax authorities and compliance with certain provisions of
the tax legislation of the respective countries in which the companies operate.
The above reconciliation is prepared by aggregating separate reconciliation for each national
jurisdiction.
Annual Report 81