105 / 152
Notes to the
financial statements
For the financial year ended 31 December 2018
103
A N N U A L R E P O R T
2 0 1 8
8.
Income tax expense/(credit) (cont’d)
(b)
Relationship between tax expense/(credit) and accounting profit/(loss) (cont’d)
At the end of the reporting period, the Group has tax losses of approximately $19,809,000
(2017: $8,020,000) that are available for offset against future taxable profits of the relevant
subsidiary in which the losses arose, for which no deferred tax asset is recognised due to the
uncertainty of its recoverability. The use of these tax losses is subject to the agreement of
the tax authority and compliance with certain provisions of the tax legislation.
A loss-transfer system of group relief (the “Group Relief System”) for companies was
introduced in Singapore with effect from year of assessment 2003. Under the Group
Relief System, a company belonging to a group of entities may transfer its current year’s
unabsorbed capital allowances, unabsorbed trade losses and unabsorbed donations (loss
items) to another company belonging to the same group, to be deducted against the latter’s
assessable income.
9.
Earnings per share
Basic earnings per share are calculated by dividing profit for the financial year, net of tax, attributable
to owners of the Company by the weighted average number of ordinary shares outstanding during
the financial year.
Diluted earnings per share are calculated by dividing profit for the financial year, net of tax,
attributable to owners of the Company by the weighted average number of ordinary shares
outstanding during the financial year plus the weighted average number of ordinary shares that
would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The following table reflects the profit and share data used in the computation of basic and diluted
earnings per share for the years ended 31 December:
2018
2017
$’000
$’000
Profit/(loss) for the financial year attributable to owners
of the Company used in the computation of basic and
diluted earnings per ordinary share
17,624
(10,690)
No. of shares
No. of shares
‘000
‘000
Weighted average number of ordinary shares for basic
earnings per share computation
202,878
202,878