Page 114 -

Notes to the Consolidated Financial Statements

31st March 2018

27 DEFERRED INCOME TAX (CONTINUED)

The movement in deferred tax assets during the year is as follows:

Accelerated Deferred
tax development
Tax losses depreciation cost Others Total
Deferred income tax assets/(liabilities) HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

At 1st April 2016 15,144 (1,140) – 18,367 32,371
Credited/(charged) to consolidated
income statement 6,683 (572) (813) (8,695) (3,397)
Exchange difference (271) (272) – (206) (749)

At 31st March 2017 21,556 (1,984) (813) 9,466 28,225

At 1st April 2017 21,556 (1,984) (813) 9,466 28,225
Charged to consolidated income
statement (4,112) (2,110) (2,166) (4,137) (12,525)
Exchange difference 370 371 – 349 1,090

At 31st March 2018 17,814 (3,723) (2,979) 5,678 16,790

Deferred income tax assets are recognised for tax losses carried forward to the extent that the
realisation of the related tax benefit through future taxable profits is probable. The Group did not
recognise deferred income tax assets of approximately HK$30,315,000 (2017: HK$2,104,000) in
respect of tax losses amounting to approximately HK$166,121,000 (2017: HK$5,751,000) that can be
carried forward against future taxable profit. Approximately HK$160,530,000 (2017: HK$381,000) of
the unrecognised tax losses have no expiry date and the remaining balance of HK$5,591,000 (2017:
HK$5,370,000) will be expired at various dates up to and including 2037 (2017: 2036).

112 ALCO HOLDINGS LIMITED ANNUAL REPORT 2018