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48 VTech Holdings Ltd Annual Report 2011
Notes to the Financial Statements
9 Investments
2011
US$ million
2010
US$ million
(i) Associates
Share of net assets 0.1 0.1
(ii) Other investments
Unlisted investments, at cost 0.1 0.1
0.2 0.2
10 Income Tax in the Consolidated Balance Sheet
(a) Current taxation in the consolidated balance sheet represents:
2011
US$ million
2010
US$ million
Provision for Profits Tax for the year (20.9) (21.5)
Provisional Profits Tax paid 16.1 13.4
(4.8) (8.1)
Balance of Profits Tax provision relating to prior years –(0.8)
(4.8) (8.9)
2011
US$ million
2010
US$ million
Tax recoverable 0.3 0.7
Tax payable (5.1) (9.6)
(4.8) (8.9)
(b) The deferred tax assets and liabilities and the deferred tax account movements for the years ended 31 March 2010 and
31 March 2011 are attributable to the following items:
1 April
2009
US$ million
Credited/
(charged) to
consolidated
income
statement
US$ million
31 March
2010 and
1 April
2010
US$ million
Credited/
(charged) to
consolidated
income
statement
US$ million
Charged
to reserve
US$ million
31 March
2011
US$ million
Deferred tax assets
Tax losses carried forward 2.4 1.1 3.5 (0.1) – 3.4
Other deductible temporary differences 2.8 (0.7) 2.1 (0.1) – 2.0
5.2 0.4 5.6 (0.2) – 5.4
Deferred tax liabilities
Accelerated tax depreciation (0.9) 0.5 (0.4) 0.2 – (0.2)
Revaluation of properties (2.9) – (2.9) – (0.3) (3.2)
Others (0.5) 0.1 (0.4) (0.1) – (0.5)
(4.3) 0.6 (3.7) 0.1 (0.3) (3.9)
Net deferred tax assets 0.9 1.0 1.9 (0.1) (0.3) 1.5
Deferred tax assets and liabilities are offset when they relate
to income taxes levied by the same taxation authority on the
same taxable entity. The following amounts are shown in the
consolidated balance sheet:
2011
US$ million
2010
US$ million
Deferred tax assets 5.4 5.6
Deferred tax liabilities (3.9) (3.7)
1.5 1.9
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$13.4
million (2010: US$15.6 million) arising from unused tax losses
sustained in the operations of certain subsidiaries of US$56.3
million (2010: US$62.9 million) have not been recognised as the
availability of future taxable profits against which the assets can
be utilised is not considered to be probable at 31 March 2011.
The tax losses arising from Hong Kong operations do not expire
under current tax legislation. The tax losses arising from the
United States operations expire up to 20 years after the relevant
accounting year end date, depending on the relevant jurisdiction.