Aviva 2009 Annual Report Download - page 175

173
Performance review
Aviva plc Notes to the consolidated financial statements continued
Corporate responsibility
Annual Report and Accounts 2009
Governance
Shareholder information
Financial statements IFRS
Financial statements MCEV
Other information
13 – Tax continued
(b) Tax charged/(credited) to other comprehensive income
(i) The total tax charge/(credit) comprises:
2009 2008
£m £m
Current tax
In respect of fair value (losses)/gains on owner-occupied properties — (1)
Deferred tax
In respect of pensions and other post-retirement obligations (45) (15)
In respect of unrealised gains/(losses) on investments 241 (203)
196 (218)
Total tax charged/(credited) to other comprehensive income 196 (219)
(ii) The tax charge attributable to policyholders’ returns included above is £nil (2008: £nil) .
(c) Tax credited to equity
Tax credited directly to equity in the year amounted to £17 million (2008: £16 million) , and is wholly in respect of coupon
payments on a direct capital instrument.
(d) Tax reconciliation
The tax on the Group’s profit/(loss) before tax differs from the theoretical amount that would arise using the tax rate of the home
country of the Company as follows:
2009 2008
£m £m
Profit/(loss) before tax 2,022 (2,368)
Tax calculated at standard UK corporation tax rate of 28%
(2008: 28.5%) 566 (675)
Different basis of tax – policyholders 82 (767)
Adjustment to tax charge in respect of prior years (113) (283)
Non-assessable income (105) (94)
Non-taxable profit on sale of subsidiaries and associates (44) (2)
Disallowable expenses 279 95
Different local basis of tax on overseas profits 50 (61)
Movement in deferred tax not recognised (15) 292
Other 7 12
Total tax charged/(credited) to income statement (note 13a) 707 (1,483)
14 – Earnings per share
This note shows how we calculate earnings per share, based both on the present shares in issue (the basic earnings per share) and
the potential future shares in issue, including conversion of share options granted to employees (the diluted earnings per share).
We have also shown the same calculations based on our operating profit as we believe this gives a better indication of operating
performance.
(a) Basic earnings per share
(i) The profit/(loss) attributable to ordinary shareholders is:
2009
Operating Adjusting
profit items Total
£m £m £m
Profit before tax attributable to shareholders’ profits 2,022 (217) 1,805
Tax attributable to shareholders’ (loss)/profits (547) 57 (490)
Profit for the year 1,475 (160) 1,315
Amount attributable to minority interests (193) (37) (230)
Cumulative preference dividends for the year (17) — (17)
Coupon payments in respect of direct capital instruments (DCI) (net of tax) (44) — (44)
Profit attributable to ordinary shareholders 1,221 (197) 1,024
Financial statements IFRS