Barclays 2012 Annual Report Download - page 252

10 Tax continued
The table below shows movements on deferred tax assets and liabilities during the year. The amounts are different from those disclosed on the
balance sheet as they are presented before offsetting asset and liability balances where there is a legal right to set-off and an intention to settle
on a net basis.
Fixed asset
timing
differences
£m
Available
for sale
investments
£m
Cash flow
hedges
£m
Retirement
benefit
obligations
£m
Loan
impairment
allowance
£m
Other
provisions
£m
Tax losses
carried
forward
£m
Share
based
payments
£m
Other
£m
Total
£m
Assets 254 186 – 85 431 261 1,493 356 1,435 4,501
Liabilities (404) (65) (489) (132) – – – – (1,096) (2,186)
At 1 January 2012 (150) 121 (489) (47) 431 261 1,493 356 339 2,315
Income statement 60 (49) (30) (185) 86 (134) 130 171 244 293
Equity – (67) (146) 3 – – – (12) (6) (228)
Other movements 23 (11) 4 (15) (60) (22) 13 (19) 4 (83)
(67) (6) (661) (244) 457 105 1,636 496 581 2,297
Assets 158 61 53 134 457 105 1,636 496 1,412 4,512
Liabilities (225) (67) (714) (378) – – – – (831) (2,215)
At 31 December 2012 (67) (6) (661) (244) 457 105 1,636 496 581 2,297
Assets 134 76 – 118 345 162 1,558 372 668 3,433
Liabilities (558) (43) (109) – – – – – (720) (1,430)
At 1 January 2011 (424) 33 (109) 118 345 162 1,558 372 (52) 2,003
Income statement 267 10 – (180) 91 110 (54) 37 420 701
Equity – 73 (393) – – – – (82) 3 (399)
Other movements 7 5 13 15 (5) (11) (11) 29 (32) 10
(150) 121 (489) (47) 431 261 1,493 356 339 2,315
Assets 254 186 – 85 431 261 1,493 356 1,435 4,501
Liabilities (404) (65) (489) (132) – – – – (1,096) (2,186)
At 31 December 2011 (150) 121 (489) (47) 431 261 1,493 356 339 2,315
Other movements include deferred tax amounts relating to acquisitions, disposals and exchange.
The amount of deferred tax liability expected to be settled after more than 12 months is £1,714m (2011: £1,044m). The amount of deferred tax
asset expected to be recovered after more than 12 months is £2,990m (2011: £2,050m). These amounts are before offsetting asset and liability
balances where there is a legal right to set-off and an intention to settle on a net basis.
Unrecognised deferred tax
Deferred tax assets have not been recognised in respect of gross deductible temporary differences of £28m (2011: £1,163m), gross tax losses
of £7,295m (2011: £2,299m) which includes capital losses of £3,358m (2011: £2,034m), and unused tax credits of £155m (2011: £nil). Tax losses
of £3m (2011: £97m) expire within 5 years, £83m (2011: £101m) expire within 6 to10 years, £5m (2011: £5m) expire within 11 to 20 years and
£7,204m (2011: £2,096m) can be carried forward indefinitely. Deferred tax assets have not been recognised in respect of these items because
it is not probable that future taxable profits and gains will be available against which the Group can utilise benefits.
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 £836m (2011: £703m).
Critical accounting estimates and judgements
The Group is subject to income taxes in numerous jurisdictions and the calculation of the Group’s tax charge and worldwide provisions for
income taxes necessarily involves a degree of estimation and judgement. There are many transactions and calculations for which the ultimate tax
treatment is uncertain and cannot be determined until resolution has been reached with the relevant tax authority. The Group recognises liabilities
for anticipated tax audit issues based on estimates of whether additional taxes will be due after taking into account external advice where
appropriate. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact
the current and deferred income tax assets and liabilities in the period in which such determination is made. These risks are managed in
accordance with the Group’s Tax Risk Framework.
Deferred tax assets have been recognised based on business profit forecasts. Further detail on the recognition of deferred tax assets is provided on
page 247 in the deferred tax assets and liabilities section of this tax note.
barclays.com/annualreport250 I Barclays PLC Annual Report 2012
Notes to the financial statements
For the year ended 31 December 2012 continued