Vtech 2003 Annual Report Download - page 43

Annual Report 2003 41
Notes to the Financial Statements
9 TANGIBLE ASSETS (continued) Land and buildings comprise:
Freehold land and
buildings and Short-term
long-term leasehold leasehold
buildings buildings Total
US$ million US$ million US$ million
Cost or valuation
At 1st April 2002 10.5 26.4 36.9
Additions 0.1 — 0.1
Revaluation (0.9) — (0.9 )
Disposals — (1.6 ) (1.6 )
Effect of changes in exchange rate 2.3 0.2 2.5
At 31st March 2003 12.0 25.0 37.0
Accumulated depreciation
At 1st April 2002 1.0 14.9 15.9
Charge for the year 0.5 1.4 1.9
Revaluation (1.4) — (1.4 )
Disposals — (0.8 ) (0.8 )
Effect of changes in exchange rate 0.8 — 0.8
At 31st March 2003 0.9 15.5 16.4
Net book value at 31st March 2003 11.1 9.5 20.6
Net book value at 31st March 2002 9.5 11.5 21.0
Cost or valuation of tangible
assets is analysed as follows:
At cost — 25.0 25.0
At professional valuation - 2003 12.0 — 12.0
12.0 25.0 37.0
Net book value of land and
buildings comprises:
Hong Kong
Long-term leasehold buildings
(not less than 50 years) 1.5 — 1.5
Overseas
Freehold land and buildings 9.6 — 9.6
Short-term leasehold buildings —9.59.5
9.6 9.5 19.1
Net book value of revalued land
and buildings had the assets
been carried at cost less
accumulated depreciation 6.4 — 6.4
The Group’s freehold and long-term leasehold land and buildings
were last revalued by independent valuers as at 31st March 2003,
on an open market value basis.
10 LEASEHOLD LAND PAYMENTS
2003 2002
Note US$ million US$ million
Net book value at 1st April 3.1 7.0
Disposals (0.1) (3.8 )
Amortization 2 (0.1) (0.1 )
Impairment charges 2 (0.2) —
Net book value at 31st March 2.7 3.1
Leasehold land payments in respect of:
Owner-occupied properties 2.7 3.1
11 DEFERRED TAXATION The deferred tax assets and liabilities and
the deferred tax account movements for the years ended 31st
March 2002 and 31st March 2003 are attributable to the
following items:
Credited/
(charged)
1st April to income 31st March
2002 statement 2003
US$ million US$ million US$ million
Deferred tax assets
Provisions 0.5 (0.4 ) 0.1
Tax losses carried forward 1.6 (0.6 ) 1.0
Other deductible temporary differences 2.6 0.2 2.8
4.7 (0.8 ) 3.9
Deferred tax liabilities
Accelerated tax depreciation (1.6) 0.8 (0.8 )
Net deferred tax assets 3.1 — 3.1
Charged to
other Credited/
properties (charged)
1st April revaluation to income 31st March
2001 reserve statement 2002
US$ million US$ million US$ million US$ million
Deferred tax assets
Provisions 0.6 — (0.1 ) 0.5
Tax losses carried forward 1.7 — (0.1 ) 1.6
Other deductible
temporary differences 2.5 — 0.1 2.6
4.8 — (0.1 ) 4.7
Deferred tax liabilities
Accelerated tax
depreciation (1.7 ) — 0.1 (1.6 )
Asset revaluation (0.4 ) 0.4 — —
(2.1 ) 0.4 0.1 (1.6 )
Net deferred tax assets 2.7 0.4 — 3.1
Deferred tax assets and liabilities are offset when the taxes relate
to the same fiscal authority. The following amounts are shown in
the consolidated balance sheet:
2003 2002
US$ million US$ million
Deferred tax assets 3.9 4.3
Deferred tax liabilities (0.8 ) (1.2 )
3.1 3.1
Deferred tax assets are recognized for tax losses carried forward
to the extent that realization of the related tax benefit through
future taxable profits is probable. Deferred tax assets of US$63.2
million (2002: US$ 80.3 million) arising from unused tax losses of
US$213.5 million (2001: US$255.4 million) have not been
recognized at the end of the year.