Ryanair 2010 Annual Report Download - page 171

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As at March 31, 2010, a deferred tax asset of 129.5 million was recognised in respect of net operating
losses incurred and available to carry forward to future periods (2009: 134.3 million, 2008: nil). The
recoverability of the deferred tax asset is based on future income forecasts which demonstrate that it is more
likely than not that future profits will be available in order to utilise the deferred tax asset. The deferred tax
asset’s recoverability is not dependent on material improvements over historical levels of pre-tax income,
material changes in the present relationship between income reported for financial and tax purposes, or material
asset sales or other non-routine transactions.
New temporary differences arising in the year to March 31, 2010 consisted of temporary differences of
130.2 million for property, plant and equipment recognised in the income statement and a charge of 19.0 million
for derivatives, all recognised in other comprehensive income. The charge in the year to March 31, 2009
consisted of temporary differences of a charge of 122.6 million for property, plant and equipment recognised in
the income statement, 11.0 million for pensions, and credits of 120.1 million for derivatives, all recognised in
other comprehensive income. The charge in the year to March 31, 2008 consisted of temporary differences of a
charge of 123.4 million for property, plant and equipment recognised in the income statement, 10.6 million for
pensions, and credits of 114.7 million for derivatives and 112.2 million in respect of available-for-sale assets, all
recognised in other comprehensive income.
The components of the tax (credit)/expense in the income statement were as follows:
Year ended
March 31,
2010
Year ended
March 31,
2009
Year ended
March 31,
2008
1M 1M 1M
Corporation tax charge in year................................................................
........
0.8 0.7 28.6
Adjustment in respect of prior-year over-provisions ................................
......
(2.0) (0.3) (3.8)
Deferred tax charge relating to origination and reversal of
temporary differences ................................................................
.............
36.9 (11.7) 23.4
35.7 (11.3) 48.2
The following table reconciles the statutory rate of Irish corporation tax to the Company’s effective
corporation tax rate:
Year ended
March 31,
2010
Year ended
March 31,
2009
Year ended
March 31,
2008
% % %
Statutory rate of Irish corporation tax................................
.............................
12.5 (12.5) 12.5
Adjustments for earnings taxed at higher rates ................................
...............
0.1 1.0 1.3
Adjustments for earnings taxed at lower rates ................................
................
(1.1) (13.2) (4.8)
Loss on impairment of available-for-sale financial asset
................................
0.5 18.6 2.8
Adjustments for prior year over-provisions ................................
....................
(0.6) (0.2) (0.8)
Other differences ................................................................
............................
(0.9) - -
Total effective rate of taxation................................................................
........
10.5 (6.3) 11.0
Deferred tax applicable to items charged or credited to other comprehensive income were as follows:
At March 31,
2010 2009 2008
1M 1M 1M
Defined benefit pension obligations ................................
...............................
- (1.1) 0.6
Derivative financial instruments................................................................
.....
9.0 20.0 (14.7)
Available for sale securities................................................................
............
- - (12.2)
Total tax charge/(credit) in other comprehensive income
...............................
9.0 18.9 (26.3)
The majority of current and deferred tax recorded in each of fiscal 2010, 2009 and 2008 relates to
domestic tax charges and there is no expiry date associated with these temporary differences. In fiscal 2010, the
Irish corporation tax rate remained at 12.5%.