Annual Report 2020

163 Notes to the Financial Statements Miramar Hotel and Investment Company, Limited Annual Report 2020 21 Taxation in the consolidated statement of financial position (Continued) (c) Deferred tax assets not recognised The Group has not recognised deferred tax assets of HK$106,647,000 (2019: HK$97,393,000) in respect of accumulated tax losses of HK$628,614,000 (2019: HK$557,365,000) as the availability of future taxable profits against which the assets can be utilised is uncertain at 31 December 2020. The tax losses can be carried forward to offset against the taxable profits of subsequent years for up to five years from the year in which they were incurred or there is no restriction on their expiry, depending on the tax jurisdiction concerned. At 31 December 2020, temporary differences relating to the undistributed profits of PRC subsidiaries amounted to HK$76,059,000 (2019: HK$61,856,000). Deferred tax liabilities of HK$3,803,000 (2019: HK$3,093,000) have not been recognised in respect of tax that would be payable on the distribution of these retained profits as the Group controls the dividend policy of these subsidiaries and the directors are of the opinion that the profits will not be distributed in the foreseeable future. 22 Total equity (a) Movements in components of equity The reconciliation between the opening and closing balances of each component of the Group’s consolidated equity is set out in the consolidated statement of changes in equity. Details of the changes in the Company’s individual components of equity between the beginning and the end of the year are set out below: The Company Share capital Capital reserve General reserve Retained profits Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Balance at 1 January 2019 2,227,024 1,019,874 300,000 1,535,331 5,082,229 Changes in equity for 2019: Profit and total comprehensive income for the year – – – 2,573,788 2,573,788 Final dividends approved in respect of the previous year (note 7(b)) – – – (255,655) (255,655) Interim dividends declared in respect of the current year (note 7(a)) – – – (165,830) (165,830) Balance at 31 December 2019 2,227,024 1,019,874 300,000 3,687,634 7,234,532