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Financial statements
21 Deferred Tax AssetsLiabilities
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same tax authority. The deferred tax assets and liabilities are determined after appropriate offsetting
as shown in “Other assets” Note 20 and “Other liabilities” Note 29 respectively.
Deferred tax assets and liabilities comprise the following temporary differences:
The Group In millions
2016 2015
Deferred income tax assets Allowances for loan losses
356 310
Available-for-sale financial assets and others 6
1 Other temporary differences
177 146 539 457
Amounts offset against deferred tax liabilities 206 158
Total 333 299
Deferred income tax liabilities
Accelerated tax depreciation 114 111
Available-for-sale financial assets and others 7 14
Other temporary differences 118 66
239 191
Amounts offset against deferred tax assets 206 158
Total 33 33
Net deferred tax assets 300 266
22 Subsidiaries and Consolidated Structured Entities
The Company In millions
2016 2015
Investment in subsidiaries
a
Ordinary shares
17,376 16,726
Additional Tier 1 instruments 2,446 344
Other equity instruments 344 344
20,166 17,414
Due from subsidiaries Subordinated term debts
1,699 1,046
Other receivables
420 1,087 2,119 2,133
Total 22,285 19,547
a The carrying amounts of certain investments which are designated as hedged items in a fair value hedge are adjusted for fair value changes
attributable to the hedged risks
22.1 Main operating subsidiaries
The main operating subsidiaries within the Group are listed below:
Effective shareholding Name of subsidiary
Country of incorporation 2016
2015
Commercial Banking
DBS Bank Ltd Singapore
100 100
DBS Bank Hong Kong Limited Hong Kong
100 100
DBS Bank China Limited China
100 100
DBS Bank Taiwan Limited Taiwan
100 100
PT Bank DBS Indonesia Indonesia
99 99 Stockbroking
DBS Vickers Securities Holdings Pte Ltd Singapore
100 100
Audited by PricewaterhouseCoopers network firms outside Singapore
144 | DBS Annual Report 2016
The Group’s main subsidiaries are regulated banks and non-bank financial institutions. Statutory, contractual or regulatory requirements as well as protective rights of non-controlling interests may restrict the ability of the Company to access and transfer assets freely to or from other entities
within the Group and to settle liabilities of the Group. Since the Group did not have any material non-controlling interests as at the balance sheet dates, any protective rights associated with these did not give rise to significant restrictions in 2015 and 2016.
Refer to Note 35 for information on non-controlling interests.
22.2 Consolidated structured entity
The structured entity consolidated by the Group is listed below:
Name of entity Purpose of consolidated structured entity
Country of incorporation
Bayfront Covered Bonds Pte Ltd Covered bond guarantor
Singapore Bayfront Covered Bonds Pte Ltd is a bankruptcy-remote structured entity established in conjunction with the Bank’s USD 10 billion Global Covered
Bond Programme see Note 30.4. As part of the contractual structures that are integral to this programme, the Bank provides funding and hedging facilities to it.
23 Associates
The Group In millions
2016 2015
Quoted equity securities
a
57 71
Unquoted equity securities
b
812 800
Sub-total 869 871
Share of post-acquisition reserves 21 129
Total 890 1,000
a The market value of the quoted associate amounted to 60 million 2015: 51 million and was based on the last traded price on 1 September 2016
prior to its trading suspension b
The carrying amounts of certain investments which are designated as hedged items in a fair value hedge are adjusted for fair value changes attributable to the hedged risks
The Group’s share of income and expenses, assets and liabilities and off-balance sheet items of the associates at 31 December are as follows:
The Group In millions
2016 2015
Income statement Share of income
155 166
Share of expenses 202 152
Balance sheet Share of total assets
1,701 1,721
Share of total liabilities 811 721
Off-balance sheet Share of contingent liabilities and commitments
Amount under 500,000
23.1 Main associates