Eng - IOI Group

Notes To The Financial Statements cont’d36. DEFERRED TAXATION cont’dPresented after appropriate offsetting as follows:GroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000Deferred tax liabilities 502,857 430,885 390 670Deferred tax assets (78,993) (95,389) - -423,864 335,496 390 670The movement of deferred tax liabilities and assets during the financial year prior to offsetting are as follows:Deferred tax liabilitiesGroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000At beginning of financial year 430,885 490,209 670 6,020Recognised in the income statementsTemporary differences on accelerated capital allowances 12,853 (18,149) (210) (5,350)Temporary differences on prepaid lease rental (148) (449) - -Temporary differences on recognition of project expenses (248) (1,995) - -Temporary differences on amortisation of fair value adjustmentson business combinations (2,718) (1,917) - -Temporary differences on revaluation of assets (547) (5,275) - -Temporary differences on 1 st Exchangeable Bonds (1,726) (9,361) - -Temporary differences on 2 nd Exchangeable Bonds (8,445) - - -Temporary differences on fair value adjustments oninvestment properties 20,623 - - -Other temporary differences 173 (5,892) - -Effect of changes in tax rates on deferred tax (24,567) - (70) -(4,750) (43,038) (280) (5,350)Addition through issuance of 2 nd Exchangeable Bonds 34,036 - - -Reduction through exchange of 1 st Exchangeable Bonds (8,632) (16,999) - -Reduction through exchange of 2 nd Exchangeable Bonds (2,875) - - -Addition through subsidiaries acquired 58,530 - - -Reduction through subsidiary disposed (2,731) - - -Foreign currency translation differences (1,606) 713 - -At end of financial year 502,857 430,885 390 670IOI Corporation BerhadANNUAL REPORT 2007 210