Lenovo 2016 Annual Report Download - page 215

213
2015/16 Annual Report Lenovo Group Limited
20 DEFERRED INCOME TAX ASSETS AND LIABILITIES
Deferred income tax is calculated in full on temporary differences under the liability method using the rates
applicable in the respective jurisdictions.
Deferred income tax assets and liabilities are netted off when the taxes relate to the same tax authority and
where offsetting is legally enforceable. The following amounts, determined after appropriate offsetting, are shown
separately on the consolidated balance sheet:
2016
US$’000
2015
US$’000
Deferred income tax assets:
Recoverable within 12 months 483,600 326,715
Recoverable after 12 months 516,972 200,086
1,000,572 526,801
Deferred income tax liabilities:
Recoverable after 12 months (222,679)(249,823)
Net deferred income tax assets 777,893 276,978
The movements in the net deferred income tax assets are as follows:
2016
US$’000
2015
US$’000
At the beginning of the year 276,978 246,449
Reclassification and exchange adjustment (4,610)(4,814)
Credited to consolidated income statement (Note 9)503,008 85,487
Credited/(charged) to other comprehensive income (Note 9)7,364 (3,451)
Acquisition of businesses –(56,386)
(Charged)/credited to share-based compensation reserve (4,847)9,693
At the end of the year 777,893 276,978