NOTES ON THE ACCOUNTS
5 TAXATION
a Taxation in the profit and loss account represents:
Provision for Hong Kong profits tax at 16.5% (1988 17%) on the profits of the year Under-provision in respect of prior years
1989
HK$'000
1988 HK$'000
27,150 147
48.100 25
27,297
48.125
b Taxation in the balance sheet represents:
Provision for Hong Kong profits tax for the year
27,150
48.100
Provisional profits tax paid
(21,507)
(10,147)
5,643
37,953
c No provision for deferred taxation has been made as the Directors consider that no liability would
be likely to arise as a result of the reversal of timing differences in the foreseeable future. The full potential liability for deferred taxation calculated on the liability method is as follows:
Depreciation allowances in excess of
related depreciation
General provisions
6 EXTRAORDINARY ITEM
1989 HK$'000
1988 HK$'000
146,953
140,229
(28,219)
(39,165)
118,734
101,064
Extraordinary item represents the surplus on disposal of the Company's premises situated at Hung Yu Mansion.
7 DIVIDENDS
Interim dividend of 13 cents per share
(1988 13 cents per share)
Final dividend of 35 cents per share
(1988 — 32 cents per share)
8 EARNINGS PER SHARE
40
1989 HK$'000
1988 HK$'000
52,473
52,473
141.274
129,165
193,747
181,638
Earnings per share is based on earnings of HK$255,522,000 (1988 - HK$261,327.000) and 403,639.413 shares in issue during the year.