Creative 2011 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 2011 Creative 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 64

  • 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

36
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
The tax credit on results differs from the amount that would arise using the Singapore standard rate of income tax as explained below:
Group
2011 2010
US$’000 US$’000
Loss before income tax (51,903) (46,680)
Tax calculated at tax rate of 17% (2010: 17%) (8,824) (7,936)
Eects of
- tax exempt loss 2,191 1,249
- income not subject to tax (4,943) (1,535)
- expenses not deductible for tax purposes 1,395 1,159
- Singapore tax concession on oshore interest income remitted – (2,000)
- dierent tax rates in other countries (188) 4,442
- deferred tax assets not recognised 11,266 9,596
- deferred tax assets on pioneer losses previously not recognised – (11,800)
- utilisation of tax losses and other reserves (893) (1,354)
- over provision in prior nancial years (5,012) (248)
- withholding tax 248 138
Tax credit (4,760) (8,289)
A deferred tax liability of US$3,300,000 was written back in the nancial year ended 30 June 2011. Deferred tax liability
of US$3,000,000 was previously provided for the tax exposure of a subsidiary company. The amount was written back
in the nancial year ended 30 June 2011 as the Group had disposed the subsidiary company and is no longer liable to its
tax exposure. Tax provision of US$2,000,000 pertaining to open years of assessment were nalized and written back by
the Company in the nancial year ended 30 June 2011.
The Company was granted a Pioneer Certicate under the International Headquarters Award which expired on 31 March
2010. Under the Pioneer Certicate, prots arising from qualifying activities were exempted from income tax in Singapore,
subject to certain conditions. Due to the expiration of the Company’s pioneer status where pioneer losses brought forward
from the previous nancial years could be used to offset against certain future tax liabilities, a deferred tax asset of
US$11,800,000 was recognised in the nancial year ended 30 June 2010. These were offset by an additional provision of
US$5,500,000 for deferred tax liabilities in the nancial year ended 30 June 2010. Additionally, a deferred tax liability of
US$2,000,000 was written back in the nancial year ended 30 June 2010 pertaining to offshore interest income remitted
to Singapore which was not taxable due to a tax concession granted by the Singapore tax authorities.
9. EARNINGS PER SHARE
(a) Basic earnings per share
Basic earnings per share is calculated by dividing the net loss attributable to equity holders of the Company by the weighted
average number of ordinary shares outstanding during the nancial year.
Group
2011 2010
Net loss attributable to equity holders of the Company (US$’000) (47,233) (38,796)
Weighted average number of ordinary shares outstanding
for basic earnings per share (‘000) 69,647 68,895
Basic loss per share (US$ per share) (0.68) (0.56)
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2011
8. INCOME TAXES (cont’d)