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18. Deferred taxation
Group Company
2009
HK$M
2008
(restated)
HK$M
2007
(restated)
HK$M
2009
HK$M
2008
(restated)
HK$M
2007
(restated)
HK$M
Deferred tax assets:
– retirement benefits 13 (46) (52) 11 (48) (52)
– provisions (178) (108) (141) (113) (63) (82)
– tax losses (1,831) (2,142) (512) (1,516) (1,767) (346)
– cash flow hedges (158) (195) (87) (135) (191) (65)
– customer loyalty programmes (82) (146) (150) (82) (146) (150)
Deferred tax liabilities:
– accelerated tax depreciation 2,047 2,169 2,052 1,380 1,511 1,503
Provision in respect of certain lease
arrangements 5,444 5,299 5,511 4,596 4,393 4,502
5,255 4,831 6,621 4,141 3,689 5,310
Group Company
2009
HK$M
2008
(restated)
HK$M
2009
HK$M
2008
(restated)
HK$M
Movements in deferred taxation comprise:
At 1st January 4,831 6,621 3,689 5,310
Movements for the year
– transferred from the profit and loss
– deferred tax expenses/(income) (note 5) 242 (1,470) 193 (1,386)
– operating expenses/(income) 76 (68) 56 (70)
– transferred to cash flow hedge reserve 37 (108) 56 (126)
– initial cash benefit from lease arrangements 585 772 585 703
Current portion of provision in respect of certain lease
arrangements included under current liabilities –
taxation (516) (916) (438) (742)
At 31st December 5,255 4,831 4,141 3,689
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 2011 to 2020 (2008: 2010 to 2019) as follows:
Group Company
2009
HK$M
2008
HK$M
2009
HK$M
2008
HK$M
After one year but within five years 2,598 2,457 2,018 1,913
After five years but within 10 years 2,376 2,234 2,108 1,926
After 10 years 470 608 470 554
5,444 5,299 4,596 4,393
Notes to the Accounts STATEMENT OF FINANCIAL POSITION
Cathay Pacific Airways Limited Annual Report 2009 75