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Notes to the Consolidated Financial Statements

31st March 2018

27 DEFERRED INCOME TAX

Deferred income tax is calculated in full on temporary differences under the liability method using a
principal tax rate of 16.5% (2017: 16.5%).

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes relate to the same
fiscal authority.

2018 2017
HK$’000 HK$’000
Deferred income tax assets to be recovered
after more than 12 months 27,560 35,460
Deferred income tax liabilities to be settled
after more than 12 months (10,770) (7,235)

Deferred income tax assets, net 16,790 28,225

ALCO HOLDINGS LIMITED ANNUAL REPORT 2018 111