NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 29 DEFERRED TAX LIABILITIES (CONT’D) Deferred tax assets have not been recognised in respect of the following items because it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom: Group 2023 2022 $’000 $’000 Deductible temporary differences 314,184 380,994 Tax losses 647,237 600,782 961,421 981,776 The deductible temporary differences do not expire under current tax legislation. The tax losses are subject to agreement by the tax authorities and compliance with tax regulations in the respective countries in which certain subsidiaries operate. The tax losses with expiry dates are as follows: Group 2023 2022 $’000 $’000 Expiry dates – Within 1 to 5 years 202.735 204,971 – After 5 years 7,164 11,119 209,899 216,090 At 31 December 2023, a deferred tax liability of $46,482,000 (2022: $40,608,000) in respect of temporary differences of $472,124,000 (2022: $424,928,000) 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 2023, the Group has not recognised deferred tax liabilities of $33,222,000 (2022: $18,298,000) relating to temporary differences on the initial recognition of assets and liabilities of the subsidiaries acquired. 30 TRADE AND OTHER PAYABLES Group Company Note 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Trade payables 240,874 249,348 30,300 1,858 Accruals 512,411 502,098 95,700 88,564 Deferred income 79,787 60,884 – – Other payables 72,276 60,547 1,200 1,096 Rental and other deposits 51,980 56,700 763 8,424 Retention sums payable 14,650 17,518 – – Amounts owing to: – subsidiaries 7 – – 1,199,466 2,119,114 – associates 8 6,932 7,395 – 6 – joint ventures 9 88,690 91,133 22,727 22,727 – fellow subsidiaries 17 118,874 294,040 – – – non-controlling interests 137,139 125,266 – – 1,323,613 1,464,929 1,350,156 2,241,789 The non-trade amounts owing to non-controlling interests are unsecured and due within one year. $90.3 million (2022: $88.4 million) of the balance bears interest at 6.0% (2022: 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 2023 2022 $’000 $’000 Revenue from contracts with customers: – Hotel operations for which revenue is: – recognised over time 1,056,376 960,884 – recognised at a point in time 442,139 419,780 – Development properties for which revenue is: – recognised over time 1,031,732 1,072,868 – recognised at a point in time 1,760,838 309,454 4,291,085 2,762,986 Dividends from investments: – fellow subsidiaries – quoted equity investments – at FVOCI 1,822 1,306 – unquoted equity investments – at FVOCI 3,206 2,295 – others – quoted equity investments – at FVOCI – 334 – quoted equity investments – mandatorily at FVTPL 286 464 – unquoted equity investments – at FVOCI 863 905 Rental income from investment properties 449,488 341,163 Others 194,371 183,960 4,941,121 3,293,413 FINANCIALS FINANCIALS ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED 197 196
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