CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 198 199 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 29 DEFERRED TAX LIABILITIES (CONT’D) The tax losses with expiry dates are as follows: Group 2021 2020 $’000 $’000 Expiry dates – Within 1 to 5 years 249,484 182,644 – After 5 years 6,089 48,172 255,573 230,816 At 31 December 2021, a deferred tax liability of $28,651,000 (2020: $35,816,000) in respect of temporary differences of $439,757,000 (2020: $532,886,000) related to the withholding tax on the distributable profits of the Group’s subsidiaries was not recognised because the Group controls whether the liability will be incurred and it is satisfied that it will not be incurred in the foreseeable future. Under SFRS(I) 1-12 Income Taxes, deferred tax is not recognised for temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting or taxable profit or loss. As at 31 December 2021, the Group have not recognised deferred tax liabilities of $32,670,000 (2020: $30,975,000) relating to temporary differences on the initial recognition of assets and liabilities of the subsidiaries acquired. 30 TRADE AND OTHER PAYABLES Group Company Note 2021 2020 2021 2020 $’000 $’000 $’000 $’000 Trade payables 251,550 91,116 2,032 1,557 Accruals 462,915 446,461 74,507 69,709 Deferred income 40,520 56,951 – 701 Other payables 106,295 63,601 988 877 Rental and other deposits 75,979 89,063 8,813 7,510 Retention sums payable 11,261 3,499 – – Amounts owing to: – subsidiaries 7 – – 2,498,058 2,619,391 – associates 8 2 887 – – – joint ventures 9 97,902 347,087 22,727 22,727 – fellow subsidiaries 16 248,648 234,311 – 7 – non-controlling interests 143,389 – – – Derivative financial liabilities 41 14,582 15,783 14,582 11,111 1,453,043 1,348,759 2,621,707 2,733,590 Included in other payables of the Group as at 31 December 2021 are unsecured non-trade amounts owing to HCP Group of $50.3 million, of which $27.8 million bears interest ranging from 6.0% to 12.0% per annum. These amounts are due within one year. The amounts owing to HCP Group by the Group as at 31 December 2020 were included as part of amounts owing to joint ventures (note 9). The non-trade amount owing to non-controlling interests is unsecured and due within one year. $112.2 million of the balance bears interest at rates ranging from 6.0% to 12.0% per annum and the remaining balance is interest-free. 31 REVENUE Revenue of the Group includes property development income, income from owning and operating hotels, rental income, dividend income and others but excludes intra-group transactions. Property development income consists mainly of sale proceeds of commercial and residential properties. Others include mainly management and consultancy fees, and income from the provision of laundry services. Group 2021 2020 $’000 $’000 Revenue from contract with customers: – Hotel operations 873,118 640,445 – Development properties for which revenue is: – recognised over time 837,018 670,745 – recognised at a point in time 417,452 295,195 2,127,588 1,606,385 Dividends from investments: – fellow subsidiaries – quoted equity investments – at FVOCI 1,387 1,088 – unquoted equity investments – at FVOCI 1,890 1,688 – others – quoted equity investments – at FVOCI 334 334 – quoted equity investments – mandatorily at FVTPL 684 844 – unquoted equity investments – at FVOCI 880 830 Rental income from investment properties 341,118 361,418 Others 151,972 135,839 2,625,853 2,108,426 As at 31 December 2021, the Group has property development income of $1,424,898,000 (2020: $579,998,000) which is expected to be recognised over the next four years (2020: three years) as construction of the development properties progresses. The Group has applied the practical expedient in paragraph 121 of SFRS(I) 15 and does not disclose information about its remaining performance obligations if: • the performance obligation is part of a contract that has an original expected duration of one year or less; or • the Group has a right to invoice a customer in an amount that corresponds directly with its performance to date, and it recognises revenue in that amount. Included in rental income from investment properties for the year ended 31 December 2021 were rental rebates granted of approximately $9.0 million (2020: $29.2 million) to eligible tenants to cushion the impact of the COVID-19 pandemic.
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