Notes to the Group financial statements

for the year ended 31 March 2009

29. Deferred tax

(a) Net deferred tax (liabilities)/assets

 

2009
US$m

2008
US$m

At 1 April

(144)

35

Differences on exchange

37

(11)

Income statement charge (note 10)

(58)

(38)

Business combinations (note 33(a))

(13)

(90)

Tax charged to equity

59

(16)

Disposal of subsidiaries (note 33(b))

(3)

Transfers

(24)

At 31 March

(122)

(144)

 

 

 

Net deferred tax (liabilities)/assets have been presented in the Group balance sheet as follows:

 

 

 

 

 

Deferred tax assets

13

26

Deferred tax liabilities

(135)

(170)

 

(122)

(144)


The movement in gross deferred tax assets and liabilities, without taking into consideration the offsetting of balances within the same tax jurisdiction, is shown below.

(b) Deferred tax assets

 

Accelerated
depreciation
US$m

Intangibles
US$m

Share option
and award
plans
US$m

Asset
provisions
US$m

Tax losses
US$m

Other
temporary
differences
US$m

 

Total
US$m

At 1 April 2008

9

115

9

36

42

52

 

263

Differences on exchange

(3)

(3)

(14)

(20)

(2)

 

(42)

Income statement credit/(charge)

16

(71)

13

(22)

(53)

72

 

(45)

Business combinations

7

 

7

Tax charged to equity

3

56

 

59

Disposal of subsidiaries

(3)

 

(3)

Transfers

15

48

(34)

 

29

At 31 March 2009

22

63

22

17

144

 

268

 

 

 

 

 

 

 

 

 

 

Accelerated
depreciation
US$m

Intangibles
US$m

Share option
and award
plans
US$m

Asset
provisions
US$m

Tax losses
US$m

Other
temporary
differences
US$m

 

Total
US$m

At 1 April 2007

3

128

20

26

8

119

 

304

Differences on exchange

2

(1)

1

 

2

Income statement credit/(charge)

6

(16)

(9)

35

(29)

 

(13)

Business combinations

3

17

9

 

29

Tax charged to equity

(11)

 

(11)

Transfers

(48)

 

(48)

At 31 March 2008

9

115

9

36

42

52

 

263


(c) Deferred tax liabilities

 

Property
valuations
US$m

Accelerated
depreciation
US$m

Intangibles
US$m

Share option
and award
plans
US$m

Tax losses
US$m

Other
temporary
differences
US$m

 

Total
US$m

At 1 April 2008

5

37

184

1

4

176

 

407

Differences on exchange

8

(2)

(48)

(37)

 

(79)

Income statement charge/(credit)

(13)

6

(57)

(1)

(4)

82

 

13

Business combinations

20

 

20

Transfers

(36)

144

(79)

 

29

At 31 March 2009

5

243

142

 

390

 

 

 

 

 

 

 

 

 

 

Property
valuations
US$m

Accelerated
depreciation
US$m

Intangibles
US$m

Share option
and award
plans
US$m

Tax losses
US$m

Other
temporary
differences
US$m

 

Total
US$m

At 1 April 2007

5

34

70

1

5

154

 

269

Differences on exchange

12

1

 

13

Income statement charge/(credit)

1

(18)

(1)

43

 

25

Business combinations

120

(1)

 

119

Tax charged to equity

5

 

5

Transfers

2

(26)

 

(24)

At 31 March 2008

5

37

184

1

4

176

 

407


Deferred tax assets are recognised in respect of tax losses carried forward and other temporary differences to the extent that the realisation of the related tax benefit through future taxable profits is probable.

The Group did not recognise deferred tax assets of US$430m (2008: US$32m) in respect of losses that can be carried forward against future taxable income. In addition the Group did not recognise deferred tax assets of US$16m (2008: US$25m) in respect of capital losses that can be carried forward against future taxable gains. These losses are available indefinitely.

Deferred tax liabilities of US$2,062m (2008: US$2,004m) have not been recognised for the withholding tax and other taxes that would be payable on the unremitted earnings of certain subsidiaries. As the earnings are continually reinvested by the Group, no tax is expected to be payable on them in the foreseeable future.

At the balance sheet date there were deferred tax assets expected to reverse within the next year of US$129m (2008: US$128m) and deferred tax liabilities expected to reverse within the next year of US$94m (2008: US$57m).

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