2011 - Li & Fung Limited

29 DEFERRED TAXATION (CONTINUED)
NOTES TO THE ACCOUNTS (CONTINUED)
Deferred tax assets are recognized for tax losses carried forward to the extent that realization of the related tax benefit through future
taxable profits is probable. The Group has unrecognized tax losses of US$542,956,000 (31 December 2010: US$435,614,000 and 1
January 2010: US$232,361,000) to carry forward against future taxable income, out of which US$75,899,000 will expire during 2012
– 2026. Deferred tax assets for these tax losses are not recognized as it is not probable that related tax assets will be utilized in the
foreseeable future.
The movements in deferred tax assets and liabilities during the year, without taking into consideration the offsetting of balances within
the same tax jurisdiction, are as follows:
Decelerated tax
depreciation
The Group
Deferred tax assets Provisions
allowances Tax losses Others Total
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
(Restated) (Restated) (Restated) (Restated) (Restated)
As at 1 January
Credited/(charged) to consolidated
44,455 24,464 2,835 4,035 39,264 12,137 786 358 87,340 40,994
profit and loss account 20,262 217 268 (2,541) (9,279) 23,453 (627) 475 10,624 21,604
Acquisition of businesses/subsidiaries – 19,644 38 1,449 – 3,642 – – 38 24,735
Disposal of businesses/subsidiary (Note 30(c)) – – – – (151) – – – (151) –
Exchange differences (238) 130 (151) (108) 54 32 – (47) (335) 7
As at 31 December 64,479 44,455 2,990 2,835 29,888 39,264 159 786 97,516 87,340
Deferred tax liabilities
Intangible assets
The Group
Accelerated tax arising from business
depreciation allowances combinations Others Total
2011 2010 2011 2010 2011 2010 2011 2010
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
(Restated) (Restated) (Restated) (Restated)
As at 1 January
Charged/(credited) to consolidated
11,018 5,134 82,736 37,270 2,766 214 96,520 42,618
profit and loss account 16,766 (1,848) 9,397 17,971 3,347 (507) 29,510 15,616
Acquisition of businesses/subsidiaries
Adjustments to purchase consideration
– 7,697 – 27,495 – 3,122 – 38,314
and net asset value
Disposal of businesses/ subsidiary
– – 572 – – – 572 –
(Note 30(c)) (16) – – – – – (16) –
Exchange differences (49) 35 – – (293) (63) (342) (28)
As at 31 December 27,719 11,018 92,705 82,736 5,820 2,766 126,244 96,520
LI & FUNG LIMITED | ANNUAL REPORT 2011 133