Creative 2015 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. The deferred tax asset of US$5,388,000 as at the nancial
year ended 30 June 2015 (2014: US$11,800,000) pertains to losses brought forward from the previous nancial years which
can be used to offset certain future tax liabilities.
Respectively, the Group and the Company have unrecognised tax losses of approximately US$628,000,000 and US$360,000,000
(2014: US$560,000,000 and US$291,000,000) 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$198,000,000 of the Group’s tax losses expire between
2016 and 2035. The Group also has United States tax deductions not included in unrecognised tax losses of approximately
US$60,000,000 (2014: US$60,000,000) as a result of the exercise of employee share options of which the tax benet has
not been realised. The tax benet of the deductions, when realised will be accounted for as a credit to other reserves rather
than a reduction of the income tax expense.
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2015
23. DEFERRED INCOME TAX LIABILITIES (cont’d)
Company
2015
Beginning of nancial year 5,388 6,412 11,800 (11,800) –
Over provision – (6,412) (6,412) 6,412 –
End of nancial year 5,388 – 5,388 (5,388) –
2014
Beginning and end of nancial year 5,388 6,412 11,800 (11,800) –
Net deferred
tax liabilies
US$’000
Unremied
oshore
interest
income
US$’000
Undistributed
prots of
foreign
subsidiaries
US$’000
Total
deferred
tax liabilies
US$’000
Deferred
tax assests
-tax losses
US$’000