Annual Report 2011 - Hongkong Land

15 Deferred Tax Assets and Liabilities continued
Revaluation
Accelerated surpluses of Other
capital investment temporary
Tax losses allowances properties differences Total
US$m US$m US$m US$m US$m
2010
At 1st January 0.5 (41.9) (1.7) 0.8 (42.3)
Exchange differences 0.1 0.1 – – 0.2
(Charged)/credited to profit and loss 0.4 (4.4) 0.7 (3.4) (6.7)
Credited to other comprehensive income – – – 1.1 1.1
At 31st December 1.0 (46.2 ) (1.0 ) (1.5 ) (47.7 )
Deferred tax assets 1.0 – – 6.1 7.1
Deferred tax liabilities – (46.2) (1.0) (7.6) (54.8)
1.0 (46.2 ) (1.0 ) (1.5 ) (47.7 )
Deferred tax balances predominantly comprise non-current items. Deferred tax assets and liabilities are netted when the taxes
relate to the same taxation authority and where offsetting is allowed.
Deferred tax assets of US$1.3 million (2010: US$0.8 million) arising from unused tax losses of US$8.6 million
(2010: US$4.7 million) have not been recognised in the financial statements. Of the unused tax losses, US$5.0 million
(2010: US$4.4 million) have no expiry date and the balance will expire in 2015.
16 Pension Plans
The Group has a number of defined benefit pension plans, covering all the main territories in which it operates with the major
plans relating to employees in Hong Kong. Most of the pension plans are final salary defined benefit plans and are funded. The
assets of the funded plans are held independently of the Group’s assets in separate trustee administered funds. The Group’s
major plans are valued by independent actuaries annually using the projected unit credit method.
The principal actuarial assumptions used for accounting purposes at 31st December are as follows:
2011 2010
Weighted
Weighted
average
average
% %
Discount rate applied to pension obligations 4.50 4.85
Expected return on plan assets 7.50 7.50
Future salary increases 5.00 5.00
The expected return on plan assets is determined on the basis of long-term average returns on global equities of 3.8% to 11.4%
(2010: 4.3% to 11.4%) per annum and global bonds of 2.8% to 4.4% (2010: 3.6% to 5.2%) per annum, and the long-term
benchmark allocation of assets between equities and bonds in the plan.
Annual Report 2011 47