TPSEAL 2010 Financial Results. - Serena Hotels

Notes to the Financial Statements (continued)
14 Borrowings (continued)
The carrying amounts of short-term borrowings approximate to their fair value. Fair values are based on discounted cash flows
using a discount rate based upon the borrowing rate that directors expect would be available to the Group at the balance sheet
date.
It is impracticable to assign fair values to the Group’s long term liabilities due to inability to forecast interest rate and foreign
exchange rate changes.
None of the above borrowings was in default in at any time in the year.
15 Deferred income tax
Deferred income tax is calculated using the enacted income tax rate of 30% (2009: 30%). The movement on the deferred income
tax account is as follows:
Movement Movement
in deferred in deferred
tax liability tax asset Total
Year ended 31 December 2009 Shs’000 Shs’000 Shs’000
At start of year 590,947 (66,379) 524,568
Income statement charge (Note 9) 36,841 28,762 65,603
Credit to equity - (8,211) (8,211)
Currency translation differences - (3,642) (3,642)
At end of year 627,788 (49,470) 578,318
Year ended 31 December 2010
At start of year 627,788 (49,470) 578,318
Income statement (credit)/charge (Note 9) (8,202) 76,385 68,183
Charged to equity 581,600 191,672 773,272
Currency translation differences - (6) (6)
Transfer of deferred tax liability/ (asset) 252,242 (252,242) -
At end of year 1,453,428 (33,661) 1,419,767
TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2010 65