Vtech 2004 Annual Report Download - page 40

38
Notes to the
Financial Statements
VTech Holdings Ltd Annual Report 2004
8 TANGIBLE ASSETS (continued)
Land and buildings comprise :
Freehold
land and
buildings and
long-term Short-term
leasehold leasehold
buildings buildings Total
US$ million US$ million US$ million
Cost or valuation
At 1st April 2003 12.0 25.0 37.0
Disposals (0.4 ) —(0.4 )
Effect of changes in exchange rate 1.2 —1.2
At 31st March 2004 12.8 25.0 37.8
Accumulated depreciation
At 1st April 2003 0.9 15.5 16.4
Charge for the year 0.3 1.3 1.6
At 31st March 2004 1.2 16.8 18.0
Net book value at 31st March 2004 11.6 8.2 19.8
Net book value at 31st March 2003 11.1 9.5 20.6
Cost or valuation of tangible
assets is analysed as follows:
At cost —25.0 25.0
At professional valuation
— 2003 (note (c)) 12.8 —12.8
12.8 25.0 37.8
Net book value of land
and buildings comprises:
Hong Kong
Long-term leasehold buildings
(not less than 50 years) 1.0 —1.0
Overseas
Freehold land and buildings 10.6 —10.6
Short-term leasehold buildings —8.2 8.2
10.6 8.2 18.8
Net book value of revalued land and
buildings had the assets been carried
at cost less accumulated depreciation 6.1 —6.1
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.
9 LEASEHOLD LAND PAYMENTS
2004 2003
Note
US$ million US$ million
Net book value at 1st April 2.7 3.1
Disposals
(0.8) (0.1)
Amortisation 2
(0.1) (0.1)
Impairment charges 2
— (0.2)
Net book value at 31st March 1.8 2.7
Leasehold land payments
in respect of:
Owner-occupied properties
1.8 2.7
10 DEFERRED TAXATION The deferred tax assets and
liabilities and the deferred tax account movements for the years
ended 31st March 2003 and 31st March 2004 are attributable to
the following items:
Credited/ 31st March Credited/
(charged) 2003 and (charged)
1st April to income 1st April to income 31st March
2002 statement 2003 statement 2004
US$ million US$ million US$ million US$ million US$ million
Deferred tax assets
Provisions 0.5 (0.4 ) 0.1 (0.1 ) —
Tax losses carried forward 1.6 (0.6 ) 1.0 1.3 2.3
Other deductible
temporary differences 2.6 0.2 2.8 (1.4 ) 1.4
4.7 (0.8 ) 3.9 (0.2 ) 3.7
Deferred tax liabilities
Accelerated tax depreciation (1.6 ) 0.8 (0.8 ) (0.8 ) (1.6 )
Net deferred tax assets 3.1 —3.1 (1.0 ) 2.1
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:
2004 2003
US$ million US$ million
Deferred tax assets 3.7 3.9
Deferred tax liabilities
(1.6) (0.8)
2.1 3.1
Deferred tax assets are recognised for tax losses carried forward to
the extent that realisation of the related tax benefit through future
taxable profits is probable. Deferred tax assets of US$47.6 million
(2003: US$63.2 million) arising from unused tax losses of US$145.0
million (2003: US$213.5 million) have not been recognised at the
end of the year.