notes to the financial statements - Singapore Technologies ...

142 SIMPLY SMARTERNOTES TO THE FINANCIAL STATEMENTS31 December 2011(Currency - Singapore dollars unless otherwise stated)10. Taxation (continued)A reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the year ended 31 Decemberis as follows:Group2011 2010$’000 $’000Profit before taxation 655,225 627,475Taxation at statutory tax rate of 17% (2010: 17%) 111,388 106,671Adjustments:Income not subject to tax (2,168) (2,988)Expenses not deductible for tax purposes 9,517 11,717Different effective tax rates of other countries 11,578 7,934Overprovision in prior years, net (20,138) (3,799)Effect of change in tax rates (50) 181Deferred tax assets not recognised 7,584 7,987Deferred tax assets previously not recognised now recognised (1,004) (5,478)Others (2,143) 398114,564 122,62311. Earnings per shareBasic earnings per shareThe calculation for basic earnings per share is based on:Group2011 2010$’000 $’000Profit attributable to shareholders 527,544 491,005The weighted average number of ordinary shares is arrived at as follows:Group2011 2010Number of shares (’000)Issued ordinary shares at beginning of the year 3,037,566 3,010,456Weighted average number of ordinary shares issued during the year 15,079 18,589Weighted average number of ordinary shares 3,052,645 3,029,045