1987 — Page 47

Kowloon Motor Bus Annuanl Reports 九龍巴士年報 All

15 DEVELOPMENT FUND

NOTES ON THE ACCOUNTS

1987

HK$'000

1986 HK$'000

Balance at 1st January

44,746

52,246

Transfers from/(to) profit and loss account:-

Amount in excess/(deficit) of permitted return

15,881

(11.231)

Interest on development fund

4,214

3.731

20,095

(7,500)

Balance at 31st December

64,841

44,746

16 LONG TERM LIABILITIES

Balance of premium on land

Bank loans (Note 18a)

Other borrowings (Note 18b)

1987 HK$'000

1986

HK$'000

4,611

6,128

111,458

88,275

328,123

208,283

444.192

302.686

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.

17 STAFF RETIREMENT FUND

Balance at 1st January

Transfer from profit and loss account

Payments during year

Balance at 31st December

1987

1986

HK$'000

HK$'000

52.775

57.136

45,529

34,618

98,304

91,754

53,026

38,979

45,278

52,775

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.

43

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