2006 - TCL Communication Technology Holdings Limited

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED
Notes to Financial Statements
31 December 2006
31. DEFERRED TAX ASSETS
Group:
Provision Impairment Advertising
Product against for property, and
warranty inventory plant and promotion
provision obsolescence equipment Tax losses accruals Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
At 1 January 2006 3,630 4,524 242 419 – 8,815
Exchange realignment 128 159 9 14 3 313
Deferred tax credited/(charged)
to income statement
during the year (note 12) (3,758) (4,683) (251) 7,849 2,355 1,512
Net deferred tax assets
at 31 December 2006 – – – 8,282 2,358 10,640
At 31 December 2006, there was no significant unrecognised deferred tax liability (2005: Nil) for taxes that would
be payable on the unremitted earnings of certain of the Group’s subsidiaries as the Group has no liability to
additional tax should such amounts be remitted.
The Group has tax losses of HK$1,902,811,000 (2005: HK$2,591,278,000) that are available for offsetting against
future taxable profits of the companies in which the losses arose. Deferred tax assets have not been recognised in
respect of these losses as they have arisen in subsidiaries that have been loss-making for some time and it is not
considered probable that taxable profits will be available against which the tax losses can be utilised.
Provision Impairment
Product against for property,
warranty inventory plant and
provision obsolescence equipment Tax losses Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
At 1 January 2005 9,445 4,524 242 419 14,630
Exchange realignment (61) – – – (61)
Deferred tax charged to
income statement
during the year (note 12) (5,754) – – – (5,754)
Net deferred tax assets
at 31 December 2005 3,630 4,524 242 419 8,815
Annual Report 2006
95