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54 Cathay Pacific Airways Limited Annual Report 2003
Notes to the Accounts – Balance Sheet
16. DEFERRED TAXATION
Group Company
2003 2002 2003 2002
HK$M HK$M HK$M HK$M
Deferred tax assets:
-
Retirement benefits (45)
-
(45)
-
-
Provisions (8) (5) (12) (9)
-
Cash flow hedges (90)
-
(90)
-
Deferred tax liabilities on accelerated tax depreciation 748 698 607 572
Provision in respect of certain lease arrangements 7,157 6,921 7,157 6,921
7, 7 6 2 7,614 7,617 7,484
Group Company
2003 2002 2003 2002
HK$M HK$M HK$M HK$M
Movements in deferred taxation comprise:
At 1st January 7,614 7,836 7,484 7,707
Movements for the year
-
transfer from profit and loss account
-
deferred tax expenses (note 5) 234 (13) 33
-
operating expenses 551 147 551 147
-
transferred to cash flow hedge reserve (90)
-
(90)
-
-
accelerated transfer to current taxation (223)
-
(223)
-
-
initial cash benefit from lease arrangements 503
-
503
-
Current portion of provision in respect of certain lease
arrangements included under current liabilities – taxation (595) (403) (595) (403)
At 31st December 7, 7 6 2 7,614 7,617 7,484
The Group has tax losses which do not expire under current tax legislation, no deferred tax asset is
recognised due to the uncertainty over its recoverability.
The provision in respect of certain lease arrangements equates to payments which are expected to be made
during the years 2005 to 2014 (2002: 2004 to 2012) as follows:
2003 2002
HK$M HK$M
After one year but within five years 4,381 4,144
After five years but within ten years 2,312 2,777
After ten years 464
-
7,157 6,921