Eng - IOI Group

Notes To The Financial Statements cont’d11. TAXATION cont’dThe amount of tax savings arising from the utilisation of previously unrecognised brought forward unabsorbed tax losses of theGroup amounted to approximately RM7,323,000 (2006 - RM11,187,000).Subject to agreement with the tax authorities, certain subsidiaries of the Group have unabsorbed tax losses of approximatelyRM120,615,000 (2006 - RM153,254,000), for which the related tax effects have not been recognised in the financial statements.These losses are available to be carried forward for set off against future chargeable income when these subsidiaries derive futureassessable income of a nature and amount sufficient for the tax losses to be utilised.Malaysian income tax is calculated at the statutory rate of 27% (2006: 28%) of the estimated assessable profit for the year. TheMalaysian corporate tax decreased from 28% to 27% for the year of assessment (“YA”) 2007 and will further reduce to 26% forYA2008, as announced in the 2007 Malaysian Budget. The computation of deferred tax as at 30 June 2007 has reflected thesechanges. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. Deferred tax is calculatedon temporary differences between the tax base of assets and liabilities and their carrying amounts in the financial statements.12. EARNINGS PER SHAREBasic earnings per shareThe basic earnings per share of the Group is calculated based on the net profit attributable to equity holders of the Companydivided by the weighted average number of ordinary shares in issue during the financial year, after taking into consideration oftreasury shares held by the Company.Group2007 2006(restated)Net profit attributable to equity holders of the Company (RM’000) 1,482,104 829,002Weighted average number of ordinary shares of RM0.10 each in issue (’000) * 6,143,103 5,712,378Basic earnings per share (sen) 24.13 14.51* Adjusted pursuant to the Share Split on 6 June 2007IOI Corporation BerhadANNUAL REPORT 2007 168