BT 2009 Annual Report Download - page 115

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ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
113BT GROUP PLC ANNUAL REPORT & FORM 20-F
FINANCIAL STATEMENTS
19. Provisions
Property Other
provisionsaprovisionsbTotal
£m £m £m
At 1 April 2008 210 136 346
Charged to the income statement 8 433 441
Unwind of discount 3–3
Utilised in the year (49) (41) (90)
Exchange differences –2020
At 31 March 2009 172 548 720
2009 2008
£m £m
Analysed as:
Current 254 81
Non current 466 265
720 346
aProperty provisions mainly comprise onerous lease provisions on rationalisation of the group’s property portfolio. The provisions will be utilised over the remaining lease periods, which range from 1 to
23 years. Financial liabilities comprise £166m (2008: £127m) of this balance.
bOther provisions includes:
– Amounts provided in relation to networks and products rationalisation and people and property restructuring and rationalisation, following the 2009 BT Global Services operational review. The cash
outflows associated with this provision are expected to occur over the next two years, the majority of which will be in 2010.
– Amounts provided in relation to the BT Global Services contract and financial review (see note 3), which will be utilised as the obligations are settled, the timing of which is currently uncertain.
– Amounts provided for the estimated incremental and directly attributable costs arising from the group’s obligation to set up Openreach and deliver the Undertakings, which will be utilised over two years.
– Amounts provided for legal or constructive obligations arising from insurance claims and litigation, which will be utilised as the obligations are settled.
20. Deferred taxation
Retirement
Excess capital benefit Share based
allowances obligations payments Other Total
£m £m £m £m £m
At 1 April 2007 2,096 (117) (128) (285) 1,566
Charge to the income statement (excluding impact of change
in tax rate) 10 121 11 64 206
Charge to equity (excluding impact of change in tax rate) – 768 57 20 845
Impact of change in tax rate to 28% (137) 6 9 18 (104)
At 31 March 2008 1,969 778 (51) (183) 2,513
Deferred tax asset –––––
Deferred tax liability 1,969 778 (51) (183) 2,513
At 31 March 2008 1,969 778 (51) (183) 2,513
(Credit) charge to the income statement (158) 78 32 7 (41)
(Credit) charge to equity – (1,959) 12 100 (1,847)
At 31 March 2009 1,811 (1,103) (7) (76) 625
Deferred tax asset – (1,103) – – (1,103)
Deferred tax liability 1,811 – (7) (76) 1,728
At 31 March 2009 1,811 (1,103) (7) (76) 625
At 31 March 2009, all of the deferred tax asset of £1,103m (2008: £nil) is expected to be recovered after more than one year. At 31 March
2009, all of the deferred tax liability of £1,728m (2008: £2,513m) is expected to be settled after more than one year.