Creative 2009 Annual Report Download - page 46

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46
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
24. DEFERRED INCOME TAX LIABILITIES (cont’d)
Deferred tax liabilities consisted of the following:
฀Group฀ Company
฀ ฀ 2009฀ 2008฀ 2009฀ 2008฀
฀ US$’000฀ US$’000฀ US$’000฀ US$’000
฀
฀ Unremitted฀offshore฀interest฀income฀ 7,388฀ 7,745฀ 7,388฀ 7,745
฀ Undistributed฀profits฀of฀certain฀foreign฀subsidiaries฀ 6,412฀ 6,299฀ 6,412฀ 6,299
฀ Transfer฀pricing฀and฀withholding฀tax฀payments฀ 11,702฀ 11,702฀ –฀ –
฀ Others฀ 4,008฀ 4,000฀ –฀ –
฀ ฀ 29,510฀ 29,746฀ 13,800฀ 14,044
The deferred income tax liabilities are expected to be settled after one year.
Deferred income tax assets are recognised for tax losses and other reserves carried forward to the extent that realisation of
the related tax benefits through future taxable profits is probable. The Group has unrecognised tax losses of approximately
US$272,305,000 (2008: US$194,654,000) at the balance sheet date which can be carried forward and used to offset against
future taxable income subject to meeting certain statutory requirements by those companies with unrecognised tax losses
in their respective countries of incorporation. A substantial portion of the tax losses expire between 2010 and 2029. The
Group also has United States tax deductions not included in unrecognised tax losses of approximately US$60,870,000 (2008:
US$60,870,000) as a result of the exercise of employee share options of which the tax benefit has not been realised. The
tax benefit of the deductions, when realised will be accounted for as a credit to other reserves rather than a reduction of the
income tax expense.
25. SHARE CAPITAL AND TREASURY SHARES
฀Number฀of฀ordinary฀shares฀ Amount
฀ ฀ Issued฀share฀ Treasury฀ Share฀ Treasury฀
฀ capital฀ shares฀ capital฀ shares
฀ ฀ ’000฀ ’000฀ US$’000฀ US$’000
฀Group฀and฀Company
฀ 2009
฀ Beginning฀of฀financial฀year฀฀ 83,626฀ (6,981)฀ 300,100฀ (32,113)
฀ Purchase฀of฀treasury฀shares฀ –฀ (7,756)฀ –฀ (22,719)
฀ Utilisation฀of฀treasury฀shares฀for฀shares฀issued฀฀
฀ under฀employee฀options฀plans฀฀ –฀ 2฀ –฀ 10
฀ Cancellation฀of฀treasury฀shares฀ (8,626)฀ 8,626฀ (33,347)฀ 33,347
฀End฀of฀financial฀year฀ 75,000฀ (6,109)฀ 266,753฀ (21,475)
฀ 2008
฀ Beginning฀of฀financial฀year฀ 83,622฀ -฀ 300,086฀ -
฀ Shares฀issued฀under฀employee฀options฀plans฀ 4฀ -฀ 14฀ -
฀ Purchase฀of฀treasury฀shares฀ -฀ (7,000)฀ -฀ (32,196)
฀ Utilisation฀of฀treasury฀shares฀for฀shares฀issued฀฀
฀ under฀employee฀options฀plans฀ -฀ 19฀ -฀ 83
฀End฀of฀financial฀year฀83,626฀ (6,981)฀ 300,100฀ (32,113)
All issued ordinary shares are fully paid. There is no par value for these ordinary shares.
NOTES TO THE FINANCIAL STATEMENTS
– For the financial year ended 30 June 2009
AR09 pg1-64_Final.indd 46 10/2/2009 10:38:10 AM