ANNUAL%20REPORT%202015%20eng

Notes to Consolidated Financial Statements
25 INCOME TAX IN THE CONSOLIDATED STATEMENT OF FINANCIAL
POSITION (Continued)
(b)
Deferred tax assets and liabilities recognised (Continued)
2015 2014
USD’000 USD’000
Net deferred tax assets recognised in
the consolidated balance sheet 46,629 37,968
Net deferred tax liabilities recognised in
the consolidated balance sheet (102,483) (101,640)
(55,854) (63,672)
(c)
Deferred tax assets not recognised
In accordance with the accounting policy set out in Note 2(r), the Group has not recognised deferred
tax assets in respect of cumulative tax losses of USD341,188,000 as at 31 December 2015 (2014:
USD252,460,000) as it is not probable that future taxable profits against which the losses can be
utilised will be available in the relevant tax jurisdiction and entity. According to the new amendment
to Mongolian Corporate Income Tax Law which is effective on 1 January 2010, for entities engaged in
mining or infrastructure construction, the tax losses generated after 1 January 2010 will expire in four
to eight years after the tax losses generated under current tax legislation. Tax losses of other entities
will expire in two years after the tax losses generated.
Expiry of unrecognised tax losses of group entities located in Mongolia:
2015 2014
USD’000 USD’000
Year of expiry
2016 7,646 8,094
2017 13,303 —
2018 31 33
2019 125 —
21,105 8,127
In relation to group entities located in the jurisdictions other than Mongolia, the tax losses amounting to
USD320,083,000 as at 31 December 2015 do not expire under current tax legislations (31 December
2014: USD239,687,000).
Annual Report 2015
173