NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2025 8. DEFERRED TAX ASSETS/(LIABILITIES) (CONT’D) Recognised tax losses, capital allowance and donations As at 31 December 2025, the Group has $8,403,000 (2024: $10,554,000) recognised tax losses available of the companies in which the losses arose. The use of the tax losses are subject to the agreement of the tax authorities and compliance with tax regulations of the respective countries in which the subsidiary companies operate. As at 31 December 2025, the tax losses have no expiry date. Unused tax losses for which no deferred tax asset is recognised At the end of the reporting period, the Group has tax losses of approximately $63,345,000 (2024: $56,149,000) that are available for offset against future taxable profits of the companies in which the losses arose for which no deferred tax asset is recognised due to uncertainty of its recoverability. The use of these tax losses is subject to the agreement of the tax authorities and compliance with certain provisions of the tax legislation of the respective countries in which the companies operate. Unrecognised temporary differences relating to investment in subsidiaries At the end of the reporting period, no deferred tax liability (2024: $Nil) has been recognised for taxes that would be payable on the undistributed earnings of certain of the Group’s subsidiaries as the Group has control over the distribution of the earnings and has determined that undistributed earnings of the subsidiaries will not be distributed in the foreseeable future. Tax consequences of proposed dividends There are no income tax consequences (2024: $Nil) attached to the dividends to the shareholders proposed by the Company but not recognised as a liability in the financial statements (Note 34). 9. CONTRACT ASSETS AND CONTRACT LIABILITIES Information about contract assets and contract liabilities from contracts with customers is disclosed as follows: Group 2025 2024 $’000 $’000 Contract assets 188,792 121,160 Contract liabilities (31,652) (85,686) 157,140 35,474 The Group has not recognised any impairment losses on receivables arising from contracts with customers for the year ended 31 December 2025 (2024: $Nil). Contract assets primarily relate to the Group’s right to consideration for work completed but not yet billed at reporting date for project revenue. Contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to the Group’s obligation to transfer goods or services to customers for which the Group has received advances received from customers for project revenue. Contract liabilities are recognised as revenue as the Group performs the work under the contract. 160 CSE GLOBAL LIMITED
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