2006 Interim Report－A Share.pdf - 中国银行

Notes to the Condensed Financial Statements
For the six month period ended 30 June 2006
(Amount in millions of Renminbi, unless otherwise stated)
13. Deferred income taxes assets/liabilities (Continued)
The deferred tax charge in the profit and loss account comprises the following timing differences:
30 June 2006 31 December 2005
Asset impairment provision 265 1,467
Fair value change of debt securities and derivative
financial instruments
190 (2,338)
Other timing differences (681) (381)
Total (Note III.28) (226) (1,252)
14. Other liabilities
Subsidiaries of the Bank undertake insurance business. Included in other liabilities are insurance liabilities as of
30 June 2006 and 31 December 2005 arising from insurance contracts analysed as follows:
As at 30 June As at 31 December
2006 2005
Long term insurance contracts 11,093 8,383
General insurance contracts 2,111 2,079
Total insurance liabilities, net 13,204 10,462
15. Share appreciation rights plan and share option schemes
(1) Share Appreciation Rights Plan
On 22 November 2005, the Bank's Board of Directors and shareholders approved and adopted a Share Appreciation
Rights Plan under which eligible participants including directors, supervisors, management and other
personnel designated by the Board, will be granted share appreciation rights, up to 25% of which will be exercisable
each year beginning on the third anniversary date from the date of the grant. The share appreciation rights will
be valid for seven years from the date of grant. Eligible participants will be entitled to receive an amount equal
to the difference, if any, between the average closing market price of the Bank's H shares in the ten days prior to
the date of grant and the average closing market price of the Bank's H shares in the 12 months prior to the date
of exercise as adjusted for any change in the Bank's equity. The plan provides cash-settled share-based payment
only and accordingly, no share will be issued under the share appreciation rights plan.
No share appreciation rights were granted during the six month period ended 30 June 2006 and no rights were
outstanding with respect to the Share Appreciation Rights Plan as of 30 June 2006 and 31 December 2005.
(2) Share Option Scheme and Sharesave Plan
On 10 July 2002, the shareholders of BOCHK Holdings, approved and adopted two share option schemes, namely, the
Share Option Scheme and the Sharesave Plan.
No options were granted during the six month period ended 30 June 2006 and no options were outstanding with
respect to the Share Option Scheme or the Sharesave Plan as of 30 June 2006 and 31 December 2005.
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