Creative 2011 Annual Report Download - page 48

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48
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
The deferred income tax liabilities/assets are expected to be settled/recovered after one year.
Deferred income tax assets are recognised for tax losses and other reserves carried forward to the extent that realisation of
the related tax benets through future taxable prot is probable. A deferred tax asset of US$11,800,000 was recognised in
the nancial year ended 30 June 2010 due to the expiration of the Company’s pioneer status where pioneer losses brought
forward from the previous nancial years can be used to offset certain future tax liabilities.
Respectively, the Group and the Company have unrecognised tax losses of approximately US$466,000,000 and US$147,000,000
(2010: US$405,000,000 and US$95,000,000) at the balance sheet date which can be carried forward and used to offset against
future taxable income subject to meeting certain statutory requirements by those companies with unrecognised tax losses in
their respective countries of incorporation. Approximately US$220,000,000 of tax losses expire between 2012 and 2031.
The Group also has United States tax deductions not included in unrecognised tax losses of approximately US$60,000,000
(2010: US$60,000,000) as a result of the exercise of employee share options of which the tax benet has not been realised.
The tax benet of the deductions, when realised will be accounted for as a credit to other reserves rather than a reduction
of the income tax expense.
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2011
23. DEFERRED INCOME TAX LIABILITIES (cont’d)
Company
2011
Beginning and end of nancial year 5,388 6,412 11,800 (11,800) –
2010
Beginning of nancial year 7,388 6,412 13,800 – 13,800
Singapore tax concession on
oshore interest remitted
recognised in prot or loss (2,000) – (2,000) – (2,000)
Credited to prot or loss – – – (11,800) (11,800)
End of nancial year 5,388 6,412 11,800 (11,800) –
Net deferred
tax liabilities
US$’000
Unremitted
oshore
interest
income
US$’000
Undistributed
prots of
foreign
subsidiaries
US$’000
Total
deferred
tax liabilities
US$’000
Deferred
tax assests
-tax losses
US$’000