Annual Report 2006 - Venture Corporation Limited

notes to financial statements
December 31, 2006
21 DEFERRED TAX ASSETS (LIABILITIES)
The Group
2006 2005
$’000 $’000
Deferred tax liabilities:
Balance at beginning of year 2,522 3,577
On acquisition of a subsidiary (Note 36) 38,273 14
Credit to profit and loss for the year (Note 27) (471) (1,126)
Exchange differences (19) 57
Balance at end of year 40,305 2,522
Accelerated
tax
depreciation
Fair value
of assets
acquired on
acquisition of
subsidiaries
Total
$’000 $’000 $’000
Components of deferred tax liabilities:
Balance at January 1, 2005 3,577 - 3,577
On acquisition of a subsidiary (Note 36) - 14 14
Credit to profit and loss for the year (Note 27) (1,126) - (1,126)
Exchange differences 57 - 57
Balance at December 31, 2005 2,508 14 2,522
On acquisition of a subsidiary (Note 36) - 38,273 38,273
Credit to profit and loss for the year (Note 27) (471) - (471)
Exchange differences (19) - (19)
Balance at December 31, 2006 2,018 38,287 40,305
The deferred tax liabilities in 2006 mainly comprise of the tax effect of fair valuation of net assets acquired from GES
during the year and these will be released upon the realisation of the revalued GES’ inventories and amortisation of
customer relationships (Note 15).
In 2005, the deferred tax liabilities mainly comprise of the tax effect of temporary differences associated with accelerated
tax depreciation.
The Group
2006 2005
$’000 $’000
Deferred tax assets:
On acquisition of a subsidiary (Note 36) 631 -
Credit to profit and loss for the year (Note 27) 113 -
Balance at end of year 744 -
The deferred tax assets mainly comprise of the tax effect of temporary differences associated with accelerated accounting
depreciation.
annual report 2006
75