NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 33 TAX EXPENSE (CONT’D) Tax recognised in other comprehensive income 2023 2022 Before tax Tax expense (note 29) Net of tax Before tax Tax expense (note 29) Net of tax $’000 $’000 $’000 $’000 $’000 $’000 Group Defined benefit plan remeasurements 5,329 37 5,366 16,000 (1,258) 14,742 Changes in fair value of equity investments measured at FVOCI (4,614) – (4,614) 76,462 – 76,462 Effective portion of changes in fair value of cash flow hedges (10,362) – (10,362) 18,272 – 18,272 Exchange differences on hedges of net investments in foreign operations 16,553 – 16,553 (10,694) – (10,694) Exchange differences on monetary items forming part of net investments in foreign operations 5,933 – 5,933 (101,310) – (101,310) Exchange differences reclassified to profit or loss on disposal of foreign operations – – – 85,302 – 85,302 Share of translation differences of equity-accounted investees (18,255) – (18,255) (55,147) – (55,147) Share of other comprehensive income of equity-accounted investees 1 – 1 615 – 615 Translation differences arising on consolidation of foreign operations (136,763) – (136,763) (145,483) – (145,483) (142,178) 37 (142,141) (115,983) (1,258) (117,241) Reconciliation of effective tax rate Group 2023 2022 $’000 $’000 Profit before tax 472,568 1,856,767 Tax using the Singapore tax rate of 17% (2022: 17%) 80,336 315,650 Income not subject to tax (134,314) (152,964) Expenses not deductible for tax purposes: – expenses 184,281 174,894 – write-back (10,200) (2,761) Effect of changes in tax rates and legislation (22) 1,425 Effect of different tax rates in other countries 23,398 50,411 Effect of share of results of associates and joint ventures (8,100) (30,274) Land appreciation tax 10,190 22,037 Effect of tax deduction on land appreciation tax (2,547) (5,509) Unrecognised deferred tax assets 29,270 40,414 Utilisation of previously unrecognised deferred tax assets (13,563) (7,604) Tax effect of losses not allowed to be set off against future taxable profits 18,127 7,862 Origination of temporary differences – 158,277 Withholding taxes 24,997 1,677 Over provision in respect of prior years (78,091) (30,967) 123,762 542,568 33 TAX EXPENSE (CONT’D) Global minimum top-up tax Pillar Two (see note 2.5) legislation has been enacted or substantively enacted in certain jurisdictions the Group operates. The Group is in scope of the enacted or substantively enacted legislation. However, the legislation was enacted close to the reporting date. Therefore, the Group is still in the process of assessing the potential exposure to Pillar Two income taxes as at 31 December 2023. The potential exposure, if any, to Pillar Two income taxes is currently not known or reasonably estimable. The Group continues to assess the impact of the Pillar Two legislation on its financial and has engaged tax consultants to assist the Group in the impact assessment. The Group has applied a temporary mandatory relief from deferred tax accounting for the impact of the top-up tax and will accounts for it as a current tax when it is incurred (see note 2.5). 34 EARNINGS PER SHARE Basic earnings per share Basic earnings per share is calculated based on: Group 2023 2022 $’000 $’000 Profit attributable to owners of the Company 317,313 1,285,322 Less: Dividends on non-redeemable convertible non-cumulative preference shares (12,254) (12,904) Profit attributable to ordinary shareholders after adjustment for non-redeemable convertible non-cumulative preference dividends 305,059 1,272,418 Group 2023 2022 Number of shares Number of shares Weighted average number of ordinary shares Weighted average number of ordinary shares during the year 906,901,330 906,901,330 Basic earnings per share 33.6 cents 140.3 cents FINANCIALS FINANCIALS ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED 203 202
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