DBS Annual Report 2015 136
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 28 respectively.
Deferred tax assets and liabilities comprise the following temporary differences:
The Group In millions
2015 2014
Deferred income tax assets
Allowances for loan losses 310 254
Other temporary differences 146 137
456 391
Amounts offset against deferred tax liabilities 157 134
Total 299 257
Deferred income tax liabilities
Accelerated tax depreciation 111 104
Available-for-sale financial assets and others 13 20
Other temporary differences 66 60
190 184
Amounts offset against deferred tax assets 157 134
Total 33 50
Net deferred tax assets 266 207
22 Subsidiaries and Consolidated Structured Entities
The Company In millions
2015 2014
Unquoted equity shares, at cost
a
17,414 15,326
Due from subsidiaries 2,133 4,090
19,547 19,416
a Includes preference shares and other equity instruments
22.1 Main operating subsidiaries
The main operating subsidiaries within the Group are listed below:
Effective shareholding Name of subsidiary
Country of incorporation 2015
2014
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 Merchant Banking
The Islamic Bank of Asia Limited Singapore
50 50 Stockbroking
DBS Vickers Securities Holdings Pte Ltd Singapore
100 100
Audited by PricewaterhouseCoopers network firms outside Singapore
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 2014 and 2015.
The Islamic Bank of Asia Limited‘s operations is in progressive wind-down, following approval from its shareholders on 6 October 2015. Refer to Note 34 for information on non-controlling interests.
Financial statements 137
22.1.1 Acquisition of remaining interest in subsidiary
Acquisition of remaining interest in DBS China Square Limited On 22 June 2015, the Bank acquired the remaining 30 stake it did not own in DBS China Square Limited for a cash consideration of
150 million from CapitaLand Investments Pte Ltd, a wholly-owned subsidiary of CapitaLand Limited.
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 USD10 billion Global
Covered Bond Programme see Note 29.4. 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
2015 2014
Quoted equity securities, at cost
a
71 71
Unquoted equity securities, at cost 800 779
Sub-total 871 850
Share of post acquisition reserves 129 145
Total 1,000 995
a The market value of quoted associates amounted to 51 million 2014: 50 million
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
2015 2014
Income statement
Share of income 166 222
Share of expenses 152 143
Balance sheet
Share of total assets 1,721 1,700
Share of total liabilities 721 705
Off-balance sheet
Share of contingent liabilities and commitments
Amount under 500,000
23.1 Main associates