2011 - Li & Fung Limited

NOTES TO THE ACCOUNTS (CONTINUED)
28 POST-EMPLOYMENT BENEFIT OBLIGATIONS (CONTINUED)
(v) The principal actuarial assumptions used are as follows:
132 LI & FUNG LIMITED | ANNUAL REPORT 2011
As at 31 December As at 1 January
2011 2010 2010
% % %
Discount rate 1.75–7.75 1.75–7.13 2.25–11.06
Expected rate of return on plan assets 1.75–6.5 1.75–6.4 2.25–7
Expected rate of future salary increases 3–8 3–8 3–5.5
Expected rate of future pension increases 2.9 3.3 3.4
(vi) Experience adjustments (loss)/gain:
The Group
2011 2010
US$’000 US$’000
(Restated)
Experience adjustments on plan liabilities (2,469) 394
Experience adjustments on plan assets (941) 1,283
29 DEFERRED TAXATION
Deferred taxation is calculated in full on temporary differences under the liability method using a principal taxation rate of 16.5% (2010:
16.5%).
The movement on the net deferred tax liabilities is as follows:
The Group
2011 2010
US$’000 US$’000
(Restated)
At 1 January 9,180 1,624
Charged/(credited) to consolidated profit and loss account (Note 6) 18,886 (5,988)
Acquisition of businesses/subsidiaries (Note 31) (38) 13,579
Adjustments to purchase consideration and net asset value 572 –
Disposal of subsidiaries 135 –
Exchange differences (7) (35)
At 31 December 28,728 9,180