NOTES ON THE ACCOUNTS

14 DEVELOPMENT FUND

Balance at 1st January

Transfers (to/from profit and loss account:

Amount in (deficit)/excess of permitted return Interest on development fund

Balance at 31st December

15 LONG TERM LIABILITIES

Balance of premium on land

Bank loans (Note 17a)

Other borrowings (Note 17b)

1988 HK$'000 64,841

1987 HK$'000

44,746

(64,841)

15,881

-

4,214

(64,841)

20,095

64,841

1988 HK$'000

1987

HK$'000

3,671

4,611

97,757

111,458

213,709

328,123

315,137

444, 192

Premiums payable in respect of land purchased from Government are payable under various agreements at an interest rate of 5% p.a. up to 1993. Amounts due within one year of the balance sheet date have been included under current liabilities.

16 STAFF RETIREMENT FUND

47

Balance at 1st January

Transfer from profit and loss account

Payments during year

Balance at 31st December

1988

1987

HK$'000

HK$'000

45,278

52,775

43,950

45,529

89,228

98,304

48,222

53,026

41,006

45,278

This deferred liability represents the balance of the retirement fund retained by the Company under an approved retirement scheme for its daily rated employees. Provisions in respect of additional liability for employees are made by way of annual contributions to the approved retirement funds.

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