Notes on The Accounts (Continued)
16. DEFERRED PROFITS
The group
The company
1997
1996
1997
1996
$000's
$000's
$000's
$000's
Balance brought forward
Recognised when the properties were sold to third parties (note 4)
Balance carried forward
750,179 750,179 449,290 449,290 (264,702)
(187,751)
485,477 750,179
261,539 449,290
Part of the deferred profit was recognised and taken to profit and loss account as the properties were sold to third parties during
the year.
17. DEFERRED LIABILITIES
Group and company
1997
1996
$000's
$000's
Employees' retirement schemes
At 1st July
Payments during year
Provision for the
year
Reclassification as current liabilities
At 30th June
72,928
84,888
(30,040)
(15,980)
71,699
28,245
(36,458)
(24,225)
78,129
72,928
The company operates separate non-contributory defined benefit employees' retirement schemes for their daily-rated and general monthly-rated staff and senior executives.
In accordance with the franchise as well as the Occupational Retirement Schemes Ordinance, these schemes are required to be separately held and managed by trustees. The company is to transfer the funds to the schemes in five equal annual instalments, the amount of which was determined with reference to an actuarial valuation of the company's liabilities as at 31st March, 1994, to liquidate the balance of deferred liabilities of the company. Regular contributions to the schemes are made by the company with reference to the rates of contribution calculated by the actuary.
The amount reclassified as current liabilities represents the fifth instalment of the funds transfer, which will be payable in 1998.
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