BT 2006 Annual Report Download - page 97

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22. DEFERRED TAXATION continued
At 31 March 2006 the group had operating losses, capital losses and other temporary differences carried forward in respect of
which no deferred tax assets were recognised amounting to £21.8 billion. The group’s capital losses and other temporary
differences have no expiry date restrictions. The expiry date of operating losses carried forward is dependent upon the tax law of
the various territories in which the losses arise. A summary of expiry dates for losses in respect of which restrictions apply is set out
below:
Territory
2006
£m
Expiry of
losses
Restricted losses:
Americas 286 2012-2026
Europe 821 2006-2022
Total restricted losses 1,107
Unrestricted losses:
Operating losses 1,475 No expiry
Capital losses 18,311 No expiry
Other 902 No expiry
Total unrestricted losses 20,688
Total 21,795
At the balance sheet date, the undistributed earnings of overseas subsidiaries was £8.6 billion. No deferred tax liabilities have been
recognised in respect of those unremitted earnings because the group is in a position to control the timing of the reversal of these
temporary differences and it is probable that such differences will not reverse in the foreseeable future. Temporary differences
arising in connection with interests in associates and joint ventures are insignificant.
23. MINORITY INTERESTS
2006 2005
£m £m
At beginning of year 50 46
Acquisition –3
Share of profits 1(1)
Disposal –1
Exchange adjustments 11
At end of year 52 50
24. RECONCILIATION OF MOVEMENTS IN EQUITY
2006 2005
£m £m
Total equity at beginning of year 95 (1,039)
Transition to IAS 32 and IAS 39 (209) –
Profit for the year 1,548 1,829
Dividends (912) (786)
Share based payments 65 20
Issue of shares 41
Net purchase of treasury shares (344) (176)
Exchange differences on translation 24 27
Actuarial gains 2,122 294
Net fair value movements on cash flow hedges (200) –
Tax on items taken directly to equity (588) (79)
Minority interest 24
Net movement in equity 1,512 1,134
Total equity at the end of year 1,607 95
Notes to the consolidated financial statements BT Group plc Annual Report and Form 20-F 2006 95