Cathay Pacific 1999 Annual Report Download - page 46

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Notes to the Accounts – Balance Sheets
50 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1999
17. Deferred taxation
Movements on deferred taxation comprise:
Group Company
1999 1998 1999 1998
HK$M HK$M HK$M HK$M
At beginning of the year 6,359 5,802 6,232 5,699
Movements for the year
– transfer from profit and loss account
– tax provision (note 7) 158 (97) 137 (121)
– operating expenses 99 81 99 81
– initial cash benefit from lease arrangements 225 666 223 666
Amount due within one year included under
current liabilities – taxation (127) (93) (127) (93)
At end of the year 6,714 6,359 6,564 6,232
The deferred taxation provision comprises the taxation effects of:
Group Company
1999 1998 1999 1998
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 699 541 549 412
– certain lease arrangements 6,028 5,831 6,028 5,833
– other timing differences (13) (13) (13) (13)
6,714 6,359 6,564 6,232
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 2001 to 2011 as follows:
1999 1998
HK$M HK$M
Within two to five years 1,079 666
After five years but within ten years 4,542 4,395
After ten years 407 770
6,028 5,831
18. Trade and other receivables
Group Company
1999 1998 1999 1998
HK$M HK$M HK$M HK$M
Trade debtors and other receivables 3,630 3,313 3,189 2,894
Prepayments 185 166 168 138
Due from associated companies 17 21 713
Due from other related companies –2–1
3,832 3,502 3,364 3,046