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VTech Holdings Limited Annual Report 2015 59
9 Income Tax in the Consolidated Balance Sheet
(a) Current taxation in the consolidated balance sheet represents:
2015
US$ million
2014
US$ million
Provision for profits tax for the year (25.2) (22.6)
Provisional profits tax paid 17.7 18.3
(7.5) (4.3)
Balance of profits tax provision relating to prior years 0.3 0.1
(7.2) (4.2)
Taxation recoverable –0.9
Taxation payable (7.2) (5.1)
(7.2) (4.2)
(b) The components of deferred tax assets and the movements for the years ended 31 March 2014 and 31 March 2015 are as follows:
Revaluation of
properties
US$ million
Unutilised
tax losses
US$ million
Other
temporary
differences
US$ million
Total
US$ million
Deferred tax arising from:
At 1 April 2013, as previously reported (4.5) 2.1 2.5 0.1
Effect of change in accounting policy for
tangible assets (note B) 4.5 – – 4.5
At 1 April 2013, as restated –2.1 2.5 4.6
(Charged)/credited to consolidated
income statement (note 4) –(2.0) 0.3 (1.7)
Charged to reserves – – (0.4) (0.4)
At 31 March 2014, as restated –0.1 2.4 2.5
At 1 April 2014, as previously reported (4.1) 0.1 2.4 (1.6)
Effect of change in accounting policy for
tangible assets (note B) 4.1 – – 4.1
At 1 April 2014, as restated –0.1 2.4 2.5
Credited to consolidated income statement (note 4) – – 1.9 1.9
Credited to reserves – – 0.1 0.1
At 31 March 2015 –0.1 4.4 4.5
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority on the same
taxable entity.
Deferred tax assets are recognised for tax losses carried forward to the extent that realisation of the related tax benefit through future
taxable profits is probable. Deferred tax assets of US$4.9 million (2014: US$5.0 million) arising from unused tax losses sustained in the
operations of certain subsidiaries of US$29.6 million (2014: US$30.1 million) have not been recognised as the availability of future taxable
profits against which the assets can be utilised is not considered to be probable at 31 March 2015.
The tax losses arising from Hong Kong operations do not expire under current tax legislation. The tax losses arising from the operations in
the PRC expire 5 years after the relevant accounting year end date. The tax losses arising from the United States operations expire up to 20
years after the relevant accounting year end date, depending on the relevant jurisdictions.