Barclays 2009 Annual Report Download - page 225

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 223
19 Deferred tax
The components of deferred taxes disclosed on the balance sheet are as follows:
2009 2008
£m £m
Deferred tax liability (470) (304)
Deferred tax asset 2,303 2,668
Net deferred tax 1,833 2,364
Deferred taxes are calculated on all temporary differences under the liability method. Movements on deferred tax assets and liabilities were as follows:
Pensions Allowance
Fixed Available and other for Tax losses
asset timing for sale Cash flow retirement impairment Other carried Share based
differences investments hedges benefits on loans provisions forward payments Other Total
£m £m £m £m £m £m £m £m £m £m
Liabilities (945) (46) (368) –––––(1,075) (2,434)
Assets 87 57 246 403 356 532 1,659 342 1,116 4,798
At 1st January 2009 (858) 11 (122) 403 356 532 1,659 342 41 2,364
Income statement 340 (8) 44 (189) 39 15 (785) 50 293 (201)
Equity – (21) (59) ––––15624100
Acquisitions and
disposals 1 – – (5) (1) (8) 4 (41) (98) (148)
Exchange and
other adjustments (26) (8) (2) 10 (15) (245) 160 (171) 15 (282)
(543) (26) (139) 219 379 294 1,038 336 275 1,833
Liabilities (660) (54) (278) –––––(197) (1,189)
Assets 117 28 139 219 379 294 1,038 336 472 3,022
At 31st December
2009 (543) (26) (139) 219 379 294 1,038 336 275 1,833
Liabilities (803) (101) (51) –––––(771) (1,726)
Assets – – 44 491 108 377 215 428 671 2,334
At 1st January 2008 (803) (101) (7) 491 108 377 215 428 (100) 608
Income statement 124 8 5 (90) 223 (10) 598 (215) 227 870
Equity – 103 (161) – – – 750 (33) (13) 646
Acquisitions and
disposals (195) ––––56–75(211) (275)
Exchange and
other adjustments 16 1 41 2 25 109 96 87 138 515
(858) 11 (122) 403 356 532 1,659 342 41 2,364
Liabilities (945) (46) (368) –––––(1,075) (2,434)
Assets 87 57 246 403 356 532 1,659 342 1,116 4,798
At 31st December 2008 (858) 11 (122) 403 356 532 1,659 342 41 2,364
The amount of deferred tax liability expected to be settled after more than 12 months is £955m (2008: £1,949m).
The amount of deferred tax asset expected to be recovered after more than 12 months is £2,446m (2008: £4,593m).
The deferred tax assets balance includes £197m (2008: £2,139m) which is the excess deferred tax assets over deferred tax liabilities in entities which have
suffered a loss in either the current or prior year. This is based on management assessment that it is probable that the relevant entities will have taxable
profits against which the temporary differences can be utilised.
Deferred tax assets have not been recognised in respect of deductible temporary differences (gross) of £4m (2008: £9m), unused tax losses (gross)
of £8,542m (2008: £4,083m) and unused tax credits of £nil (2008: £46m). Tax losses of £8,516m expire in 2029. The other tax losses, tax credits and
temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not
probable that future taxable profit will be available against which the Group can utilise benefits. The unused tax losses include amounts relating to non-UK
branches of Barclays Bank PLC where the future tax benefit might be restricted to the amount in excess of the UK rate.
The amount of temporary differences associated with investments in subsidiaries, branches, associates and joint ventures for which deferred tax liabilities
have not been recognised is £738m (2008: £8,429m).