Annual Report 2021

163 Notes to the Financial Statements Miramar Hotel and Investment Company, Limited Annual Report 2021 21 Taxation in the consolidated statement of financial position (Continued) (b) Deferred tax assets and liabilities recognised: (i) Movement of each component of deferred tax assets and liabilities The components of deferred tax liabilities/(assets) recognised in the consolidated statement of financial position and the movements during the year are as follows: Depreciation allowances in excess of related depreciation Revaluation of properties Future benefit of tax loss Total HK$’000 HK$’000 HK$’000 HK$’000 Deferred tax arising from: At 1 January 2020 203,703 74,464 (2,868) 275,299 Charged to profit or loss 13,831 45 (6,493) 7,383 Exchange adjustments 2,578 5,044 – 7,622 At 31 December 2020 and 1 January 2021 220,112 79,553 (9,361) 290,304 Charged to profit or loss 8,238 (171) (11,278) (3,211) Exchange adjustments 312 2,094 – 2,406 At 31 December 2021 228,662 81,476 (20,639) 289,499 (ii) Reconciliation to the consolidated statement of financial position 2021 2020 HK$’000 HK$’000 Net deferred tax assets recognised in the consolidated statement of financial position (16,149) (12,267) Net deferred tax liabilities recognised in the consolidated statement of financial position 305,648 302,571 289,499 290,304 (c) Deferred tax assets/liabilities not recognised The Group has not recognised deferred tax assets of HK$95,122,000 (2020: HK$106,647,000) in respect of accumulated tax losses of HK$572,180,000 (2020: HK$628,614,000) as the availability of future taxable profits against which the assets can be utilised is uncertain at 31 December 2021. 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.