Cathay Pacific 2015 Annual Report Download - page 63

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Annual Report 2015
61
4. Taxation (continued)
Hong Kong profits tax is calculated at 16.5% (2014: 16.5%) on the estimated assessable profits for the year. Overseas
tax is calculated at rates of tax applicable in countries in which the Group is assessable for tax. Tax provisions are
reviewed regularly to take into account changes in legislation, practice and the status of negotiations (see note 28(d) to
the financial statements).
A reconciliation between tax charge and accounting profit at applicable tax rates is as follows:
2015
HK$M
2014
HK$M
Consolidated profit before taxation 7,465 4,049
Notional tax calculated at Hong Kong profits tax rate of 16.5% (2014: 16.5%) (1,232) (668)
Expensesnotdeductiblefortaxpurposes (364) (122)
Tax under provisions arising from prior years (63) (20)
Effectofdifferenttaxratesinothercountries 282 157
Recognitionoftaxlossespreviouslynotrecognised/(taxlossesnotrecognised) 49 (57)
Income not subject to tax 171 111
Tax charge (1,157) (599)
Further information on deferred taxation is shown in note 15 to the financial statements.
5. Other comprehensive income
2015
HK$M
2014
HK$M
Defined benefit plans
 –remeasurementsrecognisedduringtheyear (243) (356)
 –deferredtaxation(note15) 33 40
Cash flow hedges
 –recognisedduringtheyear (13,780) (14,385)
 –transferredtoprofitorloss(note21) 7,473 427
 –deferredtaxrecognised(note15) 890 1,490
Revaluation of available-for-sale financial assets
 –recognisedduringtheyear 161 67
 –reclassifiedtoprofitorloss (482) –
Share of other comprehensive income of associates
 –recognisedduringtheyear (741) (52)
Exchangedifferencesontranslationofforeignoperations
 –recognisedduringtheyear (1,075) (525)
 –reclassifiedtoprofitorloss 15 (2)
Other comprehensive income for the year (7,749) (13,296)
Notes to the Financial Statements Statement of Profit or Loss and Other Comprehensive Income