Tesco 2009 Annual Report Download - page 87

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85
FINANCIAL STATEMENTS
Tesco PLC Annual Report and Financial Statements 2009
To find out more go to
www.tesco.com/annualreport09
Note 6 Taxation continued
Deferred tax
The following are the major deferred tax assets/(liabilities) recognised by the Group and movements thereon during the current and prior year:
Other
Accelerated Retirement Short-term pre/post
tax benefit Share-based timing IAS 32 and tax temporary
depreciation obligation payments differences Tax losses IAS 39 differences Total
£m £m £m £m £m £m £m £m
At 24 February 2007 (1,019) 284 136 51 24 21 – (503)
(Charge)/credit to the Group Income Statement (83) 22 (3) (2) (13) (8) 11 (76)
Charge to equity – (75) (57) – – – – (132)
Acquisition of subsidiaries (18) – – – – – – (18)
Foreign exchange translation 52 2 – (24) 1 – – 31
At 23 February 2008 (1,068) 233 76 25 12 13 11 (698)
(Charge)/credit to the Group Income Statement (194) 7 (46) 61 1 (8) (12) (191)
Credit to equity – 176 14 – – – – 190
Acquisition of subsidiaries 12 – – (42) – 42 – 12
Foreign exchange translation 3 1 – (2) 3 – 7 12
At 28 February 2009 (1,247) 417 44 42 16 47 6 (675)
Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax balances (after offset) for financial
reporting purposes:
2009 2008
£m £m
Deferred tax assets 21 104
Deferred tax liabilities (696) (802)
(675) (698)
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries and joint ventures, because the earnings are continually reinvested by
the Group and no tax is expected to be payable on them in the foreseeable future. The temporary difference unrecognised at the year end amounted to
£1,726m (2008 – £1,053m).
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profits will be available
against which the Group can utilise the benefits.
2009 2008
£m £m
Deductible temporary differences 12 2
Tax losses 192 38
204 40
At the Balance Sheet date, the Group has unused trading tax losses of £744m (2008 – £146m) available for offset against future profits. A deferred tax
asset has been recognised in respect of £58m (2008 – £9m) of such losses. No deferred tax asset has been recognised in respect of the remaining
£686m (2008 – £137m) due to the unpredictability of future profit streams. Included in unrecognised tax losses are losses of £32m (2008 – £39m in
2012) that will expire in 2013 and £647m (2008 – £57m in 2028) that will expire between 2014 and 2029. Other losses will be carried forward indefinitely.
In addition, the Group has UK capital losses of £310m (2008 – £350m).