Lenovo 2011 Annual Report Download - page 98
Download and view the complete annual report
Please find page 98 of the 2011 Lenovo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
 |
 |
2010/11 Annual Report Lenovo Group Limited 101
8 Finance income and costs
(a) Finance income
2011 2010
US$’000 US$’000
Interest on bank deposits 23,229 18,947
Interest on money market funds 1,118 950
Others 580 480
24,927 20,377
(b) Finance costs
2011 2010
US$’000 US$’000
Interest on bank loans and overdrafts 16,330 30,413
Dividend and relevant finance costs
on convertible preferred shares (Note 28(b)) 3,810 10,915
Factoring cost 17,022 10,600
Others 12,013 10,953
49,175 62,881
9 Taxation
The amount of taxation in the consolidated income statement represents:
2011 2010
US$’000 US$’000
Current tax
– Hong Kong profits tax 234 58
– Taxation outside Hong Kong 67,334 87,716
Deferred tax (Note 21) 16,947 (40,839)
84,515 46,935
Hong Kong profits tax has been provided at the rate of 16.5% (2010: 16.5%) on the estimated assessable profit for the year.
Taxation outside Hong Kong represents income and irrecoverable withholding taxes of subsidiaries operating in the Chinese
Mainland and overseas, calculated at rates applicable in the respective jurisdictions.
The Group has been granted certain tax concessions by tax authorities in the Chinese Mainland and overseas whereby the
subsidiaries operating in the respective jurisdictions are entitled to preferential tax treatment.
The differences between the Group’s expected tax charge, calculated at the domestic rates applicable to the countries
concerned, and the Group’s tax charge for the year are as follows:
2011 2010
US$’000 US$’000
Profit before taxation 357,751 176,303
Tax calculated at domestic rates applicable in countries concerned 95,520 16,875
Income not subject to taxation (95,994) (252,688)
Expenses not deductible for taxation purposes 67,727 262,091
Utilization of previously unrecognized tax losses (2,483) (77)
Effect on opening deferred income tax assets due to change in tax rates 1,743 867
Deferred income tax assets not recognized 10,383 12,131
Under-provision in prior years 7,619 7,736
84,515 46,935
The weighted average applicable tax rate for the year was 27% (2010: 10%).