Cathay Pacific 1998 Annual Report Download - page 50

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48 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1998
Notes to the Accounts – Balance Sheets
15. Deferred taxation
Movements on deferred taxation comprise:
Group Company
1998 1997 1998 1997
HK$M HK$M HK$M HK$M
At beginning of the year 5,802 5,359 5,699 5,299
Movements for the year
– transfer from profit and loss account
– tax provision (note 5) (97) 161 (121) 121
– operating expenses 81 46 81 43
– initial cash benefit from lease arrangements 666 317 666 317
Amount due within one year included under
current liabilities – taxation (note 14) (93) (81) (93) (81)
At end of the year 6,359 5,802 6,232 5,699
The deferred taxation provision comprises the taxation effects of:
Group Company
1998 1997 1998 1997
HK$M HK$M HK$M HK$M
Timing differences arising from:
– different taxation and accounting treatments
of fixed assets net of unutilised tax losses 541 634 412 529
– certain lease arrangements 5,831 5,177 5,833 5,178
– other timing differences (13) (9) (13) (8)
6,359 5,802 6,232 5,699
Provision has been made for all significant deferred taxation liabilities.
The provision in respect of certain lease arrangements equates to payments which are expected to be made
during the years 2000 to 2011 as follows:
1998 1997
HK$M HK$M
Within two to five years 666 463
Within five to ten years 4,395 3,939
Over ten years 770 775
5,831 5,177