Eng - IOI Group

Notes To The Financial Statements cont’d36. DEFERRED TAXATION cont’dDeferred tax assetsGroup2007 2006RM’000 RM’000At beginning of financial year 95,389 118,792Recognised in the income statementsTemporary differences on unabsorbed tax losses (14,124) (6,686)Temporary differences on unutilised capital allowances (2,807) (1,732)Other deductible temporary differences 321 (15,598)Effect of changes in tax rates on deferred tax (3,546) -(20,156) (24,016)Addition through subsidiaries acquired 3,781 -Foreign currency translation differences (21) 613At end of financial year 78,993 95,389The components of deferred tax liabilities and assets at the end of the financial year comprise tax effects of:Deferred tax liabilitiesGroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000Temporary differences on accelerated capital allowances 242,460 230,211 390 670Temporary differences on prepaid lease rental 6,965 7,659 - -Temporary differences on recognition of project expenses 1,844 2,240 - -Temporary differences on 1 st Exchangeable Bonds - 10,542 - -Temporary differences on 2 nd Exchangeable Bonds 21,776 - - -Other taxable temporary differences 285 120 - -Temporary differences on fair value adjustmentson investment properties 25,582 6,411 - -Temporary differences on fair value adjustmentson business combinations 173,436 138,011 - -Temporary differences on revaluation of assets 30,509 35,691 - -502,857 430,885 390 670211ANNUAL REPORT 2007IOI Corporation Berhad