Annual Report 2020

2020 Annual Report Transport International Holdings Limited 223 Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 28 Income tax in the consolidated statement of financial position (continued) (b) Deferred tax assets and liabilities recognised: (i) The components of deferred tax (assets)/liabilities of the Group recognised in the consolidated statement of financial position and the movements during the year are as follows: Deferred tax (assets)/liabilities arising from: Depreciation allowances in excess of the related depreciation Intangible assets Provisions Tax losses Defined benefit assets Cash flow hedge Others Total $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 At 1 January 2019 1,010,300 14,511 (640) (7,515) 150,257 (222) (5,770) 1,160,921 Charged/(credited) to profit or loss 34,779 – (40,002) 4,932 (9,335) – 540 (9,086) Charged to reserves – – – – 74,709 222 – 74,931 At 31 December 2019 and 1 January 2020 1,045,079 14,511 (40,642) (2,583) 215,631 – (5,230) 1,226,766 Charged/(credited) to profit or loss 41,684 – (1,135) (209,048) (7,179) – (437) (176,115) Charged to reserves – – – – 72,295 – – 72,295 Disposal of a subsidiary (note 35) 21 – – – – – – 21 At 31 December 2020 1,086,784 14,511 (41,777) (211,631) 280,747 – (5,667) 1,122,967 (ii) Amounts recognised in the consolidated statement of financial position: 2020 2019 $’ 000 $’ 000 Net deferred tax assets (456) (477) Net deferred tax liabilities 1,123,423 1,227,243 1,122,967 1,226,766 (c) Deferred tax assets not recognised: In accordance with the accounting policy set out in note 1(y), the Group has not recognised deferred tax assets of $19,013,000 (2019: $18,172,000) in respect of cumulative tax losses of $115,230,000 (2019: $110,133,000) as it is not probable that future taxable profits against which the losses can be utilised will be available in the relevant tax jurisdiction and entity. At 31 December 2020 and 2019, these tax losses do not expire under the current tax legislation.