Cathay Pacific 2006 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2006 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Cathay Pacific Airways Limited Annual Report 2006
74
15. Deferred taxation
Group Company
2006
HK$M
2005
HK$M
2006
HK$M
2005
HK$M
Deferred tax assets:
– retirement benefits (25) (15) (29) (24)
– provisions (121) (19) (69) (19)
– tax losses (698) (307) (497) (219)
– cash flow hedges (71) –(71) –
Deferred tax liabilities:
– accelerated tax depreciation 2,084 1,311 1,419 1,006
– cash flow hedges –7–7
Provision in respect of certain lease arrangements 5,431 5,483 4,332 5,483
6,600 6,460 5,085 6,234
Group Company
2006
HK$M
2005
HK$M
2006
HK$M
2005
HK$M
Movements in deferred taxation comprise:
At 1st January 6,460 7,280 6,234 7,113
Movements for the year
– transfer from profit and loss account
– deferred tax expenses (note 4) 197 184 80 125
– operating expenses 148 173 138 173
– transferred to cash flow hedge reserve (78) 165 (78) 165
– initial cash benefit from lease arrangements 358 343 286 343
– purchase of a subsidiary 1,221 –––
Current portion of provision in respect of certain
lease arrangements included under current
liabilities – taxation (1,706) (1,685) (1,575) (1,685)
At 31st December 6,600 6,460 5,085 6,234
The Group has certain tax losses which do not expire under current tax legislation, a deferred tax asset has been
recognised to the extent that recoverability is considered probable.
The provision in respect of certain lease arrangements equates to payments which are expected to be made
during the years 2008 to 2017 (2005: 2007 to 2016) as follows:
Group Company
2006
HK$M
2005
HK$M
2006
HK$M
2005
HK$M
After one year but within five years 3,240 3,444 2,656 3,444
After five years but within 10 years 1,907 1,770 1,450 1,770
After 10 years 284 269 226 269
5,431 5,483 4,332 5,483
Notes to the Accounts Balance Sheet