Barclays 2010 Annual Report Download - page 212

Notes to the financial statements
For the year ended 31st December 2010 continued
9 Tax continued
Deferred tax assets and liabilities
The deferred tax amounts disclosed on the balance sheet are as follows:
2010
£m
2009
£m
Deferred tax asset 2,517 2,303
Deferred tax liability (514) (470)
Net deferred tax 2,003 1,833
Deferred taxes are calculated on all temporary differences under the liability method. Movements on deferred tax assets and liabilities during the year,
without taking into consideration the offsetting of balances within the same tax jurisdiction, were as follows:
Fixed asset
timing
differences
£m
Available
for sale
investments
£m
Cash flow
hedges
£m
Pensions
and other
retirement
benefits
£m
Allowance
for
impairment
on loans
£m
Other
provisions
£m
Tax losses
carried
forwarda
£m
Share
based
payments
£m
Other
£m
Total
£m
Assets 117 28 139 219 379 294 1,038 336 472 3,022
Liabilities (660) (54) (278) – – – – – (197) (1,189)
As at 1st January
2010 (543) (26) (139) 219 379 294 1,038 336 275 1,833
Income statement 42 12 (3) (101) (46) (151) 591 25 (492) (123)
Equity – 53 38 – – – – 12 (44) 59
Acquisitions and
disposals 56–––––––258
Exchange and other
adjustments 21 (6) (5) – 12 19 (71) (1) 207 176
(424) 33 (109) 118 345 162 1,558 372 (52) 2,003
Assets 134 76 – 118 345 162 1,558 372 668 3,433
Liabilities (558) (43) (109) – – – – – (720) (1,430)
As at 31st
December 2010 (424) 33 (109) 118 345 162 1,558 372 (52) 2,003
Assets 87 57 246 403 356 532 1,659 342 1,116 4,798
Liabilities (945) (46) (368) – – – – – (1,075) (2,434)
As at 1st January
2009 (858) 11 (122) 403 356 532 1,659 34241 2,364
Income statement 340(8) 44 (189) 39 15 (785) 50293 (201)
Equity – (21) (59) – – – – 156 24 100
Acquisitions and
disposals 1 – – (5) (1) (8) 4 (41) (98) (148)
Exchange and other
adjustments (26) (8) (2) 10(15) (245) 160(171) 15 (282)
(543) (26) (139) 219379 294 1,038 336 275 1,833
Assets 117 28 139 219379 294 1,038 336 4723,022
Liabilities (660) (54) (278) – – – – – (197) (1,189)
As at 31st
December 2009 (543) (26) (139) 219379 294 1,038 336 275 1,833
Notes
a The deferred tax asset arising from tax losses mainly relates to entities in the USA,
the UK and Spain.
b The net deferred tax asset at 31st December 2010 includes £1,715m (2009: £197m) in
entities which have suffered a loss in either the current or prior year. Recognition is based
on profit forecasts which indicate that it is probable that the relevant entities will have
future taxable profits against which the temporary differences can be utilised.
c The amount of deferred tax liability expected to be settled after more than 12 months is
£911m (2009: £955m). The amount of deferred tax asset expected to be recovered after
more than 12 months is £1,645m (2009: £2,446m).
d Deferred tax assets have not been recognised in respect of deductible temporary
differences (gross) of £506m (2009: £4m), and unused tax losses (gross) of £4,571m
(2009: £8,542m) of which £70m (2009: £nil) expires within 5 years, £239m (2009: £nil)
expires within 6-10 years and £4,262m (2009: £8,542m) expires within 11-20 years.
Deferred tax assets have not been recognised in respect of these items because it is not
probable that future taxable profits will be available against which the Group can utilise
benefits. The unused tax losses include amounts relating to the US branch of Barclays
Bank PLC where the applicable tax rate for deferred tax purposes would be the excess of
the US tax rate over the UK tax rate.
e Deferred tax is not recognised in respect of the Group’s investments in subsidiaries and
branches where remittance is not contemplated and for those associates and interests in
joint ventures where it has been determined that no additional tax will arise. The
aggregate amount of temporary differences for which deferred tax liabilities have not been
recognised is £530m (2009: £738m).
210 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10