Vodafone 2015 Annual Report Download - page 128

Notes to the consolidated nancial statements (continued)
6. Taxation (continued)
Deferred tax
Analysis of movements in the net deferred tax balance during the year:
£m
1 April 2014 19,860
Exchange movements (2,977)
Credited to the income statement (continuing operations) 5,473
Charged to the income statement (discontinued operations) –
Credited directly to other comprehensive income 267
Credited directly to equity 3
Reclassications (12)
Arising on acquisition and disposals 636
31 March 2015 23,250
Deferred tax assets and liabilities, before offset of balances within countries, are as follows:
Amount Net
(charged)/ recognised
credited Gross Gross Less deferred tax
in income deferred deferred tax amounts (liability)/
statement tax asset liability unrecognised asset
£m £m £m £m £m
Accelerated tax depreciation 382 1,183 (1,355) (61) (233)
Intangible assets 195 107 (1,704) 13 (1,584)
Tax losses 4,866 28,080 –(4,430) 23,650
Deferred tax on overseas earnings (38) –(40) –(40)
Other temporary differences 68 1,695 (94) (144) 1,457
31 March 2015 5,473 31,065 (3,193) (4,622) 23,250
Deferred tax assets and liabilities are analysed in the statement of nancial position, after offset of balances within countries, as follows:
£m
Deferred tax asset 23,845
Deferred tax liability (595)
31 March 2015 23,250
At 31 March 2014, deferred tax assets and liabilities, before offset of balances within countries, were as follows:
Amount Net
(charged)/ recognised
credited Gross Gross Less deferred tax
in income deferred deferred tax amounts (liability)/
statement tax asset liability unrecognised asset
£m £m £m £m £m
Accelerated tax depreciation (123) 993 (1,597) (40) (644)
Intangible assets 255 72 (1,409) 1(1,336)
Tax losses 19,433 28,569 –(7,418) 21,151
Deferred tax on overseas earnings (2) – – – –
Other temporary differences 125 1,186 (343) (154) 689
31 March 2014 19,688 30,820 (3,349) (7,611) 19,860
At 31 March 2014 deferred tax assets and liabilities were analysed in the statement of nancial position, after offset of balances within countries,
as follows:
£m
Deferred tax asset 20,607
Deferred tax liability (747)
31 March 2014 19,860
Factors affecting the tax charge in future years
Factors that may affect the Group’s future tax charge include the impact of corporate restructurings, the resolution of open issues, future planning,
corporate acquisitions and disposals, the use of brought forward tax losses and changes in tax legislation and tax rates.
The Group is routinely subject to audit by tax authorities in the territories in which it operates and, specically, in India these are usually resolved
through the Indian legal system. We consider each issue on its merits and, where appropriate, hold provisions in respect of the potential tax liability
that may arise. However, the amount ultimately paid may differ materially from the amount accrued and could therefore affect the Group’s overall
protability and cash ows in future periods. See note 30 “Contingent liabilities” to the consolidated nancial statements.
Vodafone Group Plc
Annual Report 2015
126