ANNUAL%20REPORT%202015%20eng

Notes to Consolidated Financial Statements
7 INCOME TAX (Continued)
(b)
Reconciliation between tax expense and accounting loss at applicable tax rates: (Continued)
Note:
(i)
(ii)
(iii)
(iv)
(v)
Pursuant to the prevailing income tax rules and regulations of Mongolia, the Group is liable to Mongolian
Enterprise Income Tax at a rate of 10% of first MNT3 billion taxable income and 25% of the remaining taxable
income for the years ended 31 December 2015 and 2014. According to the Corporate Income Tax Law of
China, the Company’s subsidiary in China is subject to statutory income tax rate of 25%.
Pursuant to the rules and regulations of the Cayman Islands, the Group is not subject to any income tax in the
Cayman Islands. The Group is not subject to Hong Kong and Luxembourg profits tax as it has no assessable
income arising in or derived from Hong Kong and Luxembourg during the years ended 31 December 2015 and
2014.
Non-deductible items mainly represent the non-deductible expenses and the unrealised exchange losses
which are non-deductible pursuant to the income tax rules and regulations of Mongolia during the years ended
31 December 2015 and 2014.
Non-taxable items mainly represent the unrealised exchange gains which are non-taxable pursuant to the
income tax rules and regulations of Mongolia during the years ended 31 December 2015 and 2014.
The waiving is pursuant to the adoption of the new law on Economic Transparency on 7 August 2015 as
approved by Mongolian Parliament for amnesty from tax obligations and administrative penalties.
8 LOSS PER SHARE
(a)
Basic loss per share
The calculation of basic loss per share is based on the loss attributable to ordinary equity shareholders
of the Company of USD187,763,000 (2014: USD282,837,000) and the 9,262,591,250 ordinary shares
(2014: 4,751,758,537 ordinary shares after adjusting for the rights issue in 2014) in issue during the
year. In calculating basic loss per share, the weighted average number of shares outstanding during
the years ended 31 December 2015 and 2014 were calculated as if the bonus elements without
consideration included in the rights issue had existed from the beginning of the comparative year.
(b)
Diluted loss per share
For the years ended 31 December 2015 and 2014, basic and diluted loss per share are the same as
the effect of the potential ordinary shares outstanding is anti-dilutive.
The equity-settled share-based payment transactions (see Note 27) are anti-dilutive and therefore not
included in calculating diluted loss per share for the years ended 31 December 2015 and 2014.
Annual Report 2015
151