Barclays 2014 Annual Report Download - page 275

barclays.com/annualreport Barclays PLC Annual Report 2014 I 273
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
and deferred
compensation
£m
Other
£m
Total
£m
Assets 1,525 53 5 490 376 360 1,235 762 1,078 5,884
Liabilities (761) (61) (87) (9) – – – – (532) (1,450)
At 1 January 2014 764 (8) (82) 481 376 360 1,235 762 546 4,434
Income statement 172 84 (1) (54) 70 (87) 4 (40) (157) (9)
Other comprehensive
income – (104) (380) (63) – – – (10) (5) (562)
Other movements 51 11 4 (43) (270) (40) 76 17 199 5
987 (17) (459) 321 176 233 1,315 729 583 3,868
Assets 1,542 18 5 321 176 233 1,315 729 951 5,290
Liabilities (555) (35) (464) – – – – – (368) (1,422)
At 31 December 2014 987 (17) (459) 321 176 233 1,315 729 583 3,868
Assets 158 61 53 542 457 105 1,636 858 1,190 5,060
Liabilities (225) (67) (714) (1) – – – – (831) (1,838)
At 1 January 2013 (67) (6) (661) 541 457 105 1,636 858 359 3,222
Income statement 904 (12) – (65) (74) 270 (400) (45) 4 582
Other comprehensive
income – (17) 571 (5) – – 122 (33) (1) 637
Other movements (73) 27 8 10 (7) (15) (123) (18) 184 (7)
764 (8) (82) 481 376 360 1,235 762 546 4,434
Assets 1,525 53 5 490 376 360 1,235 762 1,078 5,884
Liabilities (761) (61) (87) (9) – – – – (532) (1,450)
At 31 December 2013 764 (8) (82) 481 376 360 1,235 762 546 4,434
Other movements include deferred tax amounts relating to acquisitions, disposals and exchange gains and losses.
The amount of deferred tax liability expected to be settled after more than 12 months is £1,123m (2013: £916m). The amount of deferred tax
asset expected to be recovered after more than 12 months is £4,845m (2013: £4,943m). 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 £2,332m (2013: £1,096m), gross tax losses
of £9,764m (2013: £10,897m) which includes capital losses of £3,522m (2013: £3,465m), and unused tax credits of £405m (2013: £245m). Tax
losses of £341m (2013: £245m) expire within 5 years, £18m (2013: £93m) expire within 6 to 10 years, £812m (2013: £1,043m) expire within 11 to
20 years and £8,593m (2013: £9,516m) 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 they can be utilised.
Deferred tax is not recognised in respect of the Group’s investments in subsidiaries, branches and associates where the Group is able to control
the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. It is not
practicable to determine the amount of income taxes that would be payable were such temporary differences to reverse.
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 has a number of
open tax returns with various tax authorities with whom we are in active dialogue. Liabilities relating to these open and judgemental matters are
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 are provided
on page 272 in the deferred tax assets and liabilities section of this tax note.
The Strategic Report Governance Risk review Financial review Financial statements Shareholder information