Barclays 2015 Annual Report Download - page 272

270 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Notes to the financial statements
Performance/return
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 and in the preceding table 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 1,542 18 5 321 176 233 1,315 729 951 5,290
Liabilities (555) (35) (464) – – – – – (368) (1,422)
At 1 January 2015 987 (17) (459) 321 176 233 1,315 729 583 3,868
Income statement 779 (13) 1 (119) (14) 21 (540) (126) 279 268
Other comprehensive
income – (14) 221 (261) – – 122 (10) (21) 37
Other movements 48 2 3 10 (5) 7 5 30 100 200
1,814 (42) (234) (49) 157 261 902 623 941 4,373
Assets 2,008 28 5 95 157 261 902 623 1,511 5,590
Liabilities (194) (70) (239) (144) – – – – (570) (1,217)
At 31 December 2015 1,814 (42) (234) (49) 157 261 902 623 941 4,373
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
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 £675m (2014: £1,123m). The amount of deferred tax assets
expected to be recovered after more than 12 months is £4,838m (2014: £4,845m). 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 £51m (2014: £2,332m), gross tax losses of
£13,456m (2014: £9,764m) which includes capital losses of £3,838m (2014: £3,522m), and unused tax credits of £452m (2014: £405m). Of these
tax losses, £389m (2014: £341m) expire within five years, £13m (2014: £18m) expire within six to ten years, £124m (2014: £812m) expire within 11
to 20 years and £12,930m (2014: £8,593m) 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 value 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 tax that would be payable were such temporary differences to reverse.
Critical accounting estimates and judgements
The Group is subject to corporate income taxes in numerous jurisdictions and the calculation of the Group’s tax charge and worldwide provisions for
corporate 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 there is 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 provided, such differences will impact the tax charge in a future period. There is no
individual position currently subject to challenge by a tax authority that if resolved in an adverse manner would materially impact the Group’s
financial position.
Deferred tax assets have been recognised based on business profit forecasts. Further detail on the recognition of deferred tax assets is provided in
the deferred tax assets and liabilities section of this tax note.