NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024 28 PROVISIONS (CONT’D) The provision for Beijing indemnity relates to tax indemnity provided to the former shareholders of Grand Millennium Beijing in which the Group acquired an additional 40% interest in 2010. The provision has been reversed during the year as the obligation is now assessed to be remote with no claims. The provision for capital expenditure relates to the Group’s obligations to incur capital expenditure under the terms of certain hotel operating agreements. The legal provisions relate mainly to provisions made in relation to disputes in several hotels. The Korea provision relates to the Group’s obligations under certain contracts in respect of Millennium Hilton Seoul and represents the costs to be incurred arising from the sale of Millennium Hilton Seoul. The sale of Millennium Hilton Seoul was completed during 2022. The Group settled the costs in 2023. The Group was fully reimbursed by the buyer of Millennium Hilton Seoul for the amounts incurred in respect of its obligations under the relevant contracts. The provision for profit payment is contingent upon the amount of the total development costs incurred as at the date of completion of the development property of the Group’s subsidiary. As at 31 December 2024, the total development costs were only an estimate and can only be established upon the practical completion of the property for which the payment is scheduled for 2025 and 2026. 29 DEFERRED TAX LIABILITIES Movements in deferred tax assets and liabilities of the Group (prior to offsetting of balances) during the year are as follows: At 1 January 2023 Recognised in profit or loss (note 33) Recognised in the statement of comprehensive income (note 33) Reclassifications Translation differences on consolidation At 31 December 2023 $’000 $’000 $’000 $’000 $’000 $’000 Group Deferred tax liabilities Property, plant and equipment (including right-of-use assets) 260,277 37,113 – (15,420) 17,812 299,782 Investment properties 53,436 2,127 – – (1,088) 54,475 Development properties 11,660 13,345 – – (991) 24,014 Employee benefits 2,272 2,828 (37) 59 (34) 5,088 Unremitted earnings 233,277 (59,957) – 519 157 173,996 Others 17,513 14,732 – (15,250) 2,764 19,759 578,435 10,188 (37) (30,092) 18,620 577,114 Deferred tax assets Tax losses (119,167) (8,163) – 17,526 1,861 (107,943) Lease liabilities (128,798) (839) – 12,566 (8,838) (125,909) Trade and other payables (27,685) 23,907 – – 222 (3,556) (275,650) 14,905 – 30,092 (6,755) (237,408) Total 302,785 25,093 (37) – 11,865 339,706 ANNUAL REPORT 2024 FINANCIALS 153
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