Notes to the Financial Statements For the financial year ended 31 December 2025 24. INCOME TAX EXPENSE (CONT’D) Deferred tax liabilities as at 31 December are attributable to the investments at FVTPL and investment properties. Movement in temporary differences during the year: 2024 Recognised in statement of total return Effect of movement in exchange rates 2025 $’000 $’000 $’000 $’000 Group Deferred tax liabilities 8,026 2,772 (1,320) 9,478 Trust Deferred tax liabilities 3,455 827 60 4,342 2023 Recognised in statement of total return Effect of movement in exchange rates 2024 $’000 $’000 $’000 $’000 Group Deferred tax liabilities 5,537 4,272 (1,783) 8,026 Trust Deferred tax liabilities 4,326 226 (1,097) 3,455 In accordance with FRS 12 Income Taxes, deferred tax is not recognised on temporary differences arising from the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss (“initial recognition exemption”). As a result of applying the initial recognition exemption, the Group has not recognised deferred tax liabilities of $22.0 million (2024: $20.1 million) relating to temporary differences arising from the Merger. 198 ESR-REIT ANNUAL REPORT 2025
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