Consolidated Profit And Loss Account (Page 38 of 48) in pdf

Consolidated Profit And Loss Account Page 38

NOTES TO THE ACCOUNTS

Negative goodwill, principally arising from the privatisation of Realty Development Corporation Limited

in 2003 by a listed subsidiary of the Group, Wheelock Properties Limited, represents the fair values of the

net assets acquired over the cost of the acquisition. The assets acquired mainly comprise investment

properties, interests in associates, long-term investments and properties under development/held for

sale. Negative goodwill will be released to the profit and loss account, on a proportional basis, when the

relevant assets acquired are sold or otherwise realised.

The negative goodwill realised for the year was credited to other net income.

26. CONTINGENT LIABILITIES

At 31 March 2005

There were contingent liabilities in respect of guarantees given by the Company on behalf of subsidiaries

relating to banking facilities up to HK$6,820.0 million (2004: HK$8,570.0 million).

There was no guarantees given by the Group in respect of banking facilities available to associates

(2004: HK$63.2 million).

27. COMMITMENTS

Commitments in respect of property developments and capital expenditure

Group

2005

2004

HK$ Million

Contracted but not provided for

1,705.8

1,103.5

Forward exchange contracts

Group

2005

2004

HK$ Million

Forward exchange contracts outstanding

120.7

1,421.3

At 31 March 2005, the Group has committed to acquire 2,424,310 shares in Hamptons Group Limited

(“Hamptons”), an associate of Wheelock Properties (Singapore) Limited (“WPSL”), at a purchase price of

£3.12 per share payable by cash. Details of which are set out in note 29(a).

Wheelock and Company Limited Annual Report 2004/05

Consolidated Profit And Loss Account Page 38