2.
NOTES ON THE ACCOUNTS (CONTINUED)
(j) Deferred taxation
Deferred taxation is calculated under the liability method in respect of the taxation effect arising from all timing differences which are expected with reasonable probability to crystallise in the foreseeable future.
(k) Operating leases
Payments under operating leases are charged to the profit and loss account on a straight line basis over the periods of the re- spective leases.
(1) Retirement schemes
The company has defined benefit schemes covering substantially all permanent staff. The schemes' funds are administered by trustees and are independent of the company's finances.
Annual contributions are made to the schemes trustees so that the value of the schemes assets at the end of each year is suf-
ficient to cover the accrued liabilities on a discontinuance basis as at that date.
TURNOVER
Group turnover represents gross income from sales and for services provided to third parties which includes revenue from ferry operations and related business, trading and services, property investment and travel business.
3.
PROFIT BEFORE TAXATION
Profit before taxation is arrived at after charging:
Interest on bank loans and overdrafts
Group
1991
HK$'000
1990
HK$'000
59
7
Interest on other loans repayable
within 5 years
7
58
66
65
Depreciation
41,771
40,707
Auditors' remuneration
927
820
Operating lease charges - hire of plant and machinery
253
104
-
hire of other assets
10,767
8,017
Provision for diminution in value of other investments
2,288
and after crediting:
Rental receivable from investment properties
net of outgoings of $9,252,000 (1990: $5,679,000)
65,676
64,762
Other rental income less outgoings
13,434
6,986
Income from listed investments
2,705
287
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