Holiday Inn 2012 Annual Report Download - page 124

122 IHG Annual Report and Financial Statements 2012
26. Deferred tax
Other
Property, Deferred short-term
plant and gains on Employee Intangible temporary
equipment loan notes Losses benefits assets differences Total
$m $m $m $m $m $m $m
At 1 January 2011 205 144 (150) (47) 35 (182) 5
Income statement 19 (7) 17 – 1 20 50
Statement of comprehensive income – – – (12) – 1 (11)
Statement of changes in equity – – – – – 9 9
Exchange and other adjustments (3) – – – 2 (1) (2)
At 31 December 2011 221 137 (133) (59) 38 (153) 51
Income statement 12 (26) (74) 6 (6) (1) (89)
Statement of comprehensive income – – – (6) – 1 (5)
Statement of changes in equity – – – (4) – (1) (5)
Exchange and other adjustments 3 3 (8) – 1 (1) (2)
At 31 December 2012 236 114 (215) (63) 33 (155) (50)
2012 2011
$m $m
Analysed as:
Deferred tax assets (204) (106)
Deferred tax liabilities 93 97
Liabilities held for sale 61 60
(50) 51
Deferred gains on loan notes includes $55m (2011 $55m) which is expected to fall due for payment in 2016.
The deferred tax asset recognised in respect of losses of $215m (2011 $133m) includes $78m (2011 $104m) in respect of capital losses
available to be utilised against the realisation of capital gains which are recognised as a deferred tax liability and $137m (2011 $29m) in
respect of revenue tax losses. Deferred tax assets of $22m (2011 $44m) are recognised in relation to legal entities which suffered a tax
loss in the current or preceding period. These assets are recognised based upon future taxable profit forecasts for the entities concerned.
Tax losses with a net tax value of $272m (2011 $358m), including capital losses with a value of $140m (2011 $134m), have not been
recognised. These losses may be carried forward indefinitely with the exception of $11m which expires after four years and $1m which
expires after eight years (2011 $11m which expires after five years and $1m which expires after six years). Deferred tax assets with a net tax
value of $32m (2011 $29m) in respect of employee benefits, up to $34m (2011 $34m) in respect of foreign tax credits and $53m (2011 $52m)
in respect of other items have not been recognised. These losses and other deferred tax assets have not been recognised as the Group does
not currently anticipate being able to offset these against future profits or gains in order to realise any economic benefit in the foreseeable
future. However, future benefits may arise as a result of resolving tax uncertainties, or as a consequence of case law and legislative
developments which make the value of assets more certain.
At 31 December 2012, the Group has not provided deferred tax in relation to temporary differences associated with post-acquisition
undistributed earnings of subsidiaries as the Group is in a position to control the timing of reversal of these temporary differences and
it is probable that they will not reverse in the foreseeable future. The tax which would arise upon reversal of the temporary differences is
not expected to exceed $20m (2011 $20m).
Other short-term temporary differences relate primarily to provisions, accruals, amortisation and share-based payments.
Notes to the Group Financial Statements continued