BERJAYA GROUP BERHAD - Berjaya Corporation Berhad

99
N O T E S T O T H E A C C O U N T S
30 APRIL 1998
25 PROFIT BEFORE TAXATION (CONTINUED)
(b) As a result of the adoption of International Accounting Standard No. 8 (Revised) Net Profit or Loss for
the Period, Fundamental Errors and Changes in Accounting Policies (“IAS 8”) which came into effect
for the accounting period beginning 1 January 1997, these capital transactions are disclosed in this note
and are not taxable. Prior to the introduction of IAS 8, those capital transactions would have been
disclosed as extraordinary items.
26 TAXATION
Group
Company
1998 1997 1998 1997
RM’000 RM’000 RM’000 RM’000
In Malaysia:
Current taxation 132,428 174,974 18,650 36,369
Deferred taxation 474 10,235 - -
Associated companies 2,538 4,793 - -
In respect of prior years (30,855) (3,557) (9,147) (1,338)
104,585 186,445 9,503 35,031
Outside Malaysia:
Current taxation 10,119 13,677 - -
Deferred taxation (2,278) 535 - -
Associated companies (3,335) 385 - -
In respect of prior years (61) (59) - -
4,445 14,538 - -
109,030 200,983 9,503 35,031
The effective rate of taxation for the Group is higher than the standard rate of tax applicable in Malaysia as
losses of certain subsidiary companies cannot be set off against profits made by other companies in the group
and certain expenses being disallowed for tax purposes.
As at 30 April 1998, the Company has tax losses of approximately RM1,750,000 (1997:RM1,750,000) and
unutilised capital allowances of approximately RM5,984,000 (1997:RM4,840,000) which can be used to offset
against future taxable profits subject to the agreement of the tax authorities.
As at 30 April 1998, the Company has a potential deferred tax benefit of approximately RM2,125,000 (1997:
RM1,822,000), arising principally from tax losses carried forward and unutilised capital allowances, the
effects of which are not included in the accounts as there is no assurance beyond any reasonable doubt that
future taxable income will be sufficient to allow the benefit to be realised.
27 PRIOR YEAR ADJUSTMENT
The prior year adjustment of RM57,627,000 (1997 : Nil) represents an over-recognition of gain on disposal
of a subsidiary company in the financial year ended 30 April 1997. This arose from an adjustment to the sales
price in accordance with the provisions of the sale and purchase agreement.
28 DIVIDENDS
Group and Company
1998 1997
RM’000 RM’000
Underprovision of dividend in previous year due to enlargement of share capital 40 -
Interim paid:
2 sen gross per share, less 28% tax
(1997: 5 sen gross per share, less 30% tax) 12,673 29,754
Proposed final:
1 sen gross per share, less 28% tax
(1997: 7.5 sen gross per share, less 30% tax) 8,753 46,054
21,466 75,808