I.
H.
3.
5
Interest on long term borrowings arranged for financing of fixed assets will be
incorporated in capital expenditure if payable
a)
prior to or accrued at commissioning;
b)
charged to operating costs, subject to the provisions of B.10 above, if accrued and payable after commissioning.
Taxation.
1.
For any year, the Scheme of Control taxation charge will be the aggregate of
a)
the total profits tax liability of the Companies in respect of that year; and
b)
an amount representing deferred taxation on the difference between Scheme of Control depreciation
(see D.2 above) and tax depreciation (see D.3 above).
Adjustments.
1.
Subject to the provisions of sections B. to H. above, revenues and operating costs will be treated as allowable or disallowable for the Scheme in the same manner as for tax purposes.
J.
Accounts.
1. The published accounts of China Light will include a Scheme of
Control statement showing the annual results of the Companies under the Scheme.