Singapore Press Holdings annual report 2011 Singapore Press ...

Notes to the
Financial StatementS
August 31, 2011
119
5. RESERVES (cont’d)
Movements (cont’d)
(c)
Fair value reserve
Group
Company
2011 2010 2011 2010
S$’000 S$’000 S$’000 S$’000
Beginning of financial year 265,276 203,724 29,216 25,722
Financial assets, available-for-sale
- Fair value gains 36,746 66,153 5,157 3,494
- Deferred tax on fair value changes
[Note 6(a)] 1,649 (645) - -
38,395 65,508 5,157 3,494
Transferred to income statement
on disposal [Note 27] (3,461) (4,475) - -
Deferred tax on transfer [Note 6(a)] 568 519 - -
End of financial year 300,778 265,276 34,373 29,216
6. INCOME TAXES
(a)
Deferred income taxes
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current income tax assets against current income tax liabilities and when the deferred income taxes
relate to the same fiscal authority. The following amounts, determined after appropriate offsetting,
are shown on the balance sheets:
Group
Company
2011 2010 2011 2010
S$’000 S$’000 S$’000 S$’000
Deferred income tax liabilities:
- to be settled within one year 3,030 2,199 2,950 2,476
- to be settled after one year 46,451 51,962 34,676 38,653
49,481 54,161 37,626 41,129
Deferred income tax taken to equity during the financial year is as follows:
Group
Company
2011 2010 2011 2010
S$’000 S$’000 S$’000 S$’000
Hedging reserve [Note 5(b)] 1,284 414 335 (102)
Fair value reserve [Note 5(c)] (2,217) 126 - -
(933) 540 335 (102)
Deferred income tax assets are recognised for tax losses and capital allowances carried forward
to the extent that realisation of the related tax benefits through future taxable profits is probable.
The Group has unrecognised tax losses and capital allowances of S$4.4 million (2010: S$5.0 million)
and S$0.1 million (2010: S$0.1 million) respectively at the balance sheet date which can be carried
forward and used to offset against future taxable income subject to meeting certain statutory
requirements by those companies with unrecognised tax losses and capital allowances in their
respective countries of incorporation. The tax losses have no expiry dates.