Cathay Pacific 2000 Annual Report Download - page 59

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CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 2000 57
16. Long-term liabilities
(continued)
As at 31st December 2000, the Company and the Group had obligations under finance leases
which were defeased by funds and other investments amounting to HK$2,317 million and
HK$5,249 million respectively (1999: HK$1,555 million and HK$3,714 million). Accordingly,
these liabilities and the related funds, as well as related expenditure and income, have not
been included in the consolidated accounts.
17. Deferred taxation
Movements on deferred taxation comprise:
Group Company
2000 1999 2000 1999
HK$M HK$M HK$M HK$M
At 1st January 6,714 6,359 6,564 6,232
Movements for the year
– transfer from profit and loss account
– tax provision (9) 158 (42) 137
– operating expenses 95 99 158 99
– initial cash benefit from lease arrangements 504 225 504 223
Amount due within one year included under
current liabilities – taxation (158) (127) (158) (127)
At 31st December 7,146 6,714 7,026 6,564
The deferred taxation provision comprises:
Group Company
2000 1999 2000 1999
HK$M HK$M HK$M HK$M
Timing differences arising from
– different taxation and accounting treatments of
– fixed assets net of unutilised tax losses 653 699 533 549
– certain lease arrangements 6,532 6,028 6,532 6,028
– other timing differences (39) (13) (39) (13)
7,146 6,714 7,026 6,564
Provision has been made for all significant deferred taxation liabilities.
Notes to the Accounts – Balance Sheets