CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 202 203 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 32 PROFIT/(LOSS) FOR THE YEAR (CONT’D) Group Note 2021 2020 $’000 $’000 Other expenses (Reversal of impairment losses)/Impairment losses recognised on: – property, plant and equipment 4 (95,375) 87,517 – investment properties 5 (3,416) 12,035 – trade receivables (2,448) 11,222 Loss on dilution of interest in an associate 2,002 731 Intangible assets written off – 55 Property, plant and equipment and investment properties written off 9,216 11,842 Provisions (written back)/made 28 (4,665) 283,331 Finance income Interest income under the effective interest method: – amounts owing by fellow subsidiaries at amortised cost – 31 – amounts owing by associates at amortised cost 63 1,706 – amounts owing by joint ventures at amortised cost 18,539 20,294 – unquoted debt investment at amortised cost 2,064 31,321 – cash and cash equivalents 10,800 24,265 – others 4,774 6,436 Fair value gains on financial assets mandatorily measured at FVTPL – 65,694 Net exchange gain – 19,140 36,240 168,887 Less: Finance income capitalised in development properties (34) (269) Total finance income 36,206 168,618 Finance costs Amortisation of transaction costs capitalised 8,051 8,474 Interest expense: – term loans and bank loans 122,189 128,933 – bonds and notes 76,922 71,327 – amounts owing by fellow subsidiaries 2,786 4,583 – amounts owing by joint ventures 958 – – financial derivatives at FVTPL 8,739 6,300 – lease liabilities 10,240 8,962 – others 10,138 286 Fair value losses on financial derivatives designated at FVTPL (net) 27,069 55,277 Fair value losses on financial assets mandatorily measured at FVTPL (net) 2,852 – Net exchange loss 18,943 – Unwinding of discount on non-current liabilities 276 434 Finance costs capitalised in: – development properties* (37,182) (21,134) – property, plant and equipment (3,297) (1,433) – investment properties (10,861) – Total finance costs 237,823 262,009 Net finance costs 201,617 93,391 * Relates to development properties for which revenue is recognised at a point in time. Borrowing costs on development properties where revenue is recognised over time is charged to profit or loss, as incurred. 32 PROFIT/(LOSS) FOR THE YEAR (CONT’D) Group 2021 2020 $’000 $’000 The above finance income and finance costs (including amounts capitalised) include the following interest income and expenses in respect of assets and liabilities not at FVTPL: – total interest income on financial assets 31,773 78,157 – total finance costs on financial liabilities 160,208 182,562 During the year, net finance costs of the Group have been capitalised at rates ranging from 0.36% to 12.00% (2020: 0.34% to 5.00%) per annum, 1.00% to 2.94% (2020: 1.00% to 1.50%) per annum, and 4.90% to 12.00% per annum for development properties, property, plant and equipment, and investment properties, respectively. Grant related income and expense For year ended 31 December 2020, grant income and corresponding grant expense of $18.8 million have been recognised in relation to the rental relief for eligible tenants from the Singapore government as part of the COVID-19 relief measures. 33 TAX EXPENSE Group Note 2021 2020 $’000 $’000 Current tax expense Current year 116,545 98,311 Over provision in respect of prior years (8,462) (12,931) 108,083 85,380 Deferred tax credit Movements in temporary differences (41,128) (11,692) Effect of changes in tax rates and legislation (6,442) 85 Under provision in respect of prior years 2,084 728 29 (45,486) (10,879) Land appreciation tax 22,482 12,508 Withholding tax 2,829 693 Total tax expense 87,908 87,702
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