| (a) |
Deferred income taxes are calculated on all temporary differences
under the liability method using a principal tax rate of 30%
(2003 - 30%).
The movement in the deferred income tax account is as follows:
| |
|
|
|
Group |
|
|
|
Company |
| (All amounts in Sri Lanka
Rupees millions) |
|
2004 |
|
2003 |
|
2004 |
|
2003 |
 |
| At beginning of year |
|
8,139 |
|
7,146 |
|
8,139 |
|
7,146 |
| Income statement release |
|
(2,982) |
|
(1,099) |
|
(2,982) |
|
(1,099) |
| Change in estimation in the amortisation
of deferred tax asset (Note 17('c)) |
|
(662) |
|
– |
|
(662) |
|
– |
| Amortisation of the tax asset on account
of brought forward losses and investment tax allowances
(Note 17 ('c)) |
|
2,994 |
|
2,092 |
|
2,994 |
|
2,092 |
| |
|
|
|
|
|
|
|
| At end of year |
|
7,489 |
|
8,139 |
|
7,489 |
|
8,139 |
| |
|
|
|
|
|
|
|
|
| (b) |
The amounts shown in the balance sheet represent the following:
| |
|
|
|
Group |
|
|
|
Company |
| (All amounts in Sri Lanka
Rupees millions) |
|
2004 |
|
2003 |
|
2004 |
|
2003 |
|
| Deferred tax asset (Note 17('c)) |
|
– |
|
(2,332) |
|
– |
|
(2,332) |
| Deferred tax liabilities |
|
7,489 |
|
10,471 |
|
7,489 |
|
10,471 |
| |
|
|
|
|
|
|
|
| |
|
7,489 |
|
8,139 |
|
7,489 |
|
8,139 |
| |
|
|
|
|
|
|
|
|
| (c) |
As at 31 December 2004 deferred tax asset has been fully utilised
as follows:
| |
|
|
Group/Company |
| (All amounts in Sri Lanka
Rupees millions) |
|
2004 |
2003 |
 |
| Balance as at 1 January (Note 17 (b)) |
|
2,332 |
|
4,424 |
| Change in estimation in the amortisation
of deferred tax asset (Note 17 (a)) |
|
662 |
|
– |
| |
|
|
|
| |
|
2,994 |
|
4,424 |
| Amortised to the income statement |
|
(2,994) |
|
(2,092) |
| |
|
|
|
| As at 31 December |
|
– |
|
2,332 |
| |
|
|
|
|
