TPSEAL 2010 Financial Results. - Serena Hotels

Notes to the Financial Statements (continued)
15 Deferred income tax (continued)
Year ended 31 December 2009 1.1.2009 Charge/ Charge to Translation 31.12.2009
(credit) to P/L equity differences
Shs’000 Shs’000 Shs’000 Shs ‘000 Shs’000
Deferred income tax liabilities
Property, plant & equipment
- on historical cost 285,317 31,513 - - 316,830
- on revaluation surplus 556,944 (7,334 ) (8,211) - 541,399
Unrealised exchange gains 20,937 9,468 - - 30,405
Accelerated tax depreciation 40,702 - - - 40,702
903,900 33,647 (8,211) - 929,336
Deferred income tax assets
Tax losses carried forward (210,196) 53,106 - - (157,090)
Provisions (31,868) (2,843) - - (34,711)
Under provision in the year (2) - - - (2)
Other deductible temporary differences (137,266) (18,307) - (3,642) (159,215)
(379,332) 31,956 - (3,642) (351,018)
Net deferred income tax liability 524,568 65,603 (8,211) (3,642) 578,318
Deferred income tax of Shs 7,885,000 (2009: Shs 7,334,000) was transferred within shareholders’ equity from revaluation
reserves to retained earnings. This represents deferred income tax on the difference between the actual depreciation on the
property and the equivalent depreciation based on the historical cost of the property.
TPS EASTERN AFRICA LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS 2010 67