Annual Report 2012 - IOI Group

NOTES TO THEFINANCIAL STATEMENTS22. DERIVATIVE FINANCIAL INSTRUMENTS (Continued)All the above derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequentlyre-measured at fair value through profit or loss. The resulting gain or loss from the re-measurement is recognised in profit or loss.During the financial year, the Group and the Company recognised total fair value losses of RM73,709,000 (2011 – RM129,343,000)and RM2,838,000 (2011 – RM42,357,000) respectively arising from fair value changes of derivative liabilities. The fair value changesare attributable to changes in foreign exchange spot and forward foreign exchange and interest rates. The methods andassumptions applied in determining the fair values of derivatives are disclosed in Note 42.6.23. DEFERRED TAXATIONGroupCompany2012RM’0002011RM’0002012RM’0002011RM’000At beginning of financial year 403,376 425,482 6,256 6,630Recognised in profit or loss (Note 11)– Current year (27,297) (12,529) 102 (1)– Prior years (7,316) (21,663) (263) (373)(34,613) (34,192) (161) (374)Foreign currency translation differences (12,167) 12,086 – –At end of financial year 356,596 403,376 6,095 6,256Presented after appropriate offsetting as follows:GroupCompany2012RM’0002011RM’0002012RM’0002011RM’000Deferred tax liabilities 427,672 453,046 6,095 6,256Deferred tax assets (71,076) (49,670) – –356,596 403,376 6,095 6,256180IOI CORPORATION BERHADAnnual Report 2012