Ryanair 2006 Annual Report Download - page 44

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(Continued)
Notes
44
ANNUAL REPORT & FINANCIAL STATEMENTS 2006
3 DERIVATIVE FINANCIAL INSTRUMENTS (Continued)
No material level of ineffectiveness has been recorded for these foreign currency forward contracts in the current year as the
underlying hedged items and hedging instruments have been consistently closely matched.
The group also ordinarily utilises jet fuel forward contracts to manage exposure to jet fuel prices however there were none at
hand at March 31, 2006.
Unrealised losses on the group's interest rate swaps of 109.3m (2005: 151.9m) will be amortised to the profit and loss account
over the period in which forecasted interest and lease payments will be made (typically 1 - 12 years from the year end), as an offset
to the related interest and rental expense.
4 DEFERRED AND CURRENT TAXATION
The components of the deferred and current taxation in the balance sheet were as follows:
2006 2005
000 000
Current income tax liabilities
Corporation tax provision 15,247 17,534
Total current tax 15,247 17,534
Deferred income tax liabilities (non-current)
Temporary differences on property, plant and equipment, derivatives and pensions 127,260 104,180
Total non current 127,260 104,180
Total tax liabilities 142,507 121,714
2006 2005
Reconciliation of current tax 000 000
At beginning of year 17,534 9,765
Corporation tax charge in year 1,950 11,967
Reversal of prior year overprovision (4,673) -
Tax refund/(paid) 436 (4,198)
At end of year 15,247 17,534
2006 2005
Reconciliation of deferred tax 000 000
At beginning of year 104,180 87,670
Temporary differences on property, plant and equipment, derivatives, pensions and other items 23,080 16,510
At end of year 127,260 104,180
Temporary differences for the year to March 31, 2006 principally consisted of 34.9m for property, plant and equipment, 0.3m
for pensions and a deferred tax credit of 12.1m for derivatives. The charge to March 31, 2005 consisted of 17.8m for property,
plant and equipment and a deferred tax credit of 1.3m for pensions.