Cathay Pacific 2008 Annual Report Download - page 75

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Notes to the Accounts STATEMENT OF FINANCIAL POSITION
18. Deferred taxation
Group Company
2008
HK$M
2007
HK$M
2008
HK$M
2007
HK$M
Deferred tax assets:
– retirement benefits (46) (52) (48) (52)
– provisions (108) (141) (63) (82)
– tax losses (2,142) (512) (1,767) (346)
– cash flow hedges (195) (87) (191) (65)
Deferred tax liabilities:
– accelerated tax depreciation 2,169 2,052 1,511 1,503
Provision in respect of certain lease arrangements 5,299 5,511 4,393 4,502
4,977 6,771 3,835 5,460
Group Company
2008
HK$M
2007
HK$M
2008
HK$M
2007
HK$M
Movements in deferred taxation comprise:
At 1st January 6,771 6,508 5,460 5,085
Movements for the year
– transferred from the profit and loss
– deferred tax (income)/expenses (note 6) (1,474) 199 (1,390) 199
– operating (income)/expenses (68) 141 (70) 103
– transferred to cash flow hedge reserve (108) (16) (126) 6
– initial cash benefit from lease arrangements 772 987 703 839
Current portion of provision in respect of
certain lease arrangements included under
current liabilities – taxation (916) (1,048) (742) (772)
At 31st December 4,977 6,771 3,835 5,460
The Group has certain tax losses which do not expire under current tax legislation and 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 2010 to 2019 (2007: 2009 to 2018) as follows:
Group Company
2008
HK$M
2007
HK$M
2008
HK$M
2007
HK$M
After one year but within five years 2,457 3,183 1,913 2,637
After five years but within 10 years 2,234 1,548 1,926 1,204
After 10 years 608 780 554 661
5,299 5,511 4,393 4,502
Cathay Pacific Airways Limited Annual Report 2008 73