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98 IHG Annual Report and Financial Statements 2009
26 Deferred tax
Other
Property, Deferred short-term
plant and gains on Employee Intangible temporary
equipment loan notes Losses benefits assets differences Total
$m $m $m $m $m $m $m
At 1 January 2008 248 175 (190) (32) 42 (89) 154
Income statement (7) – 13 18 (8) (8) 8
Statement of comprehensive income – – – (21) – – (21)
Statement of changes in equity –––––22
Exchange and other adjustments (15) (33) 36 2 (6) (6) (22)
At 31 December 2008 226 142 (141) (33) 28 (101) 121
Income statement (43) – 6 (1) 1 (59) (96)
Statement of comprehensive income – – – (1) – – (1)
Statement of changes in equity –––––(6)(6)
Exchange and other adjustments 6 9 (11) – 2 (1) 5
At 31 December 2009 189 151 (146) (35) 31 (167) 23
2009 2008
$m $m
Analysed as:
Deferred tax receivable (95) –
Deferred tax payable 118 117
Liabilities classified as held for sale –4
At 31 December 23 121
Deferred gains on loan notes includes $55m (2008 $55m) which is expected to fall due for payment in 2011.
The deferred tax asset of $146m (2008 $141m) recognised in respect of losses includes $97m (2008 $87m) in respect of capital losses
available to be utilised against the realisation of capital gains which are recognised as a deferred tax liability and $49m (2008 $54m)
in respect of revenue tax losses.
Tax losses with a net tax value of $517m (2008 $553m), including capital losses with a value of $196m (2008 $160m), have not been recognised.
These losses may be carried forward indefinitely with the exception of $1m which expires after 15 years, $1m which expires after nine
years and $14m which expires after seven years (2008 $1m which expires after three years). Deferred tax assets with a net tax value of
$9m (2008 $4m) in respect of share-based payments, $13m (2008 $13m) in respect of employee benefits and $7m (2008 $8m) in respect
of other items have not been recognised. These losses and other deferred tax assets have not been recognised as the Group does not
anticipate being able to offset these against future profits or gains in order to realise any economic benefit in the foreseeable future.
However, future benefits may arise depending on future profits arising or on the outcome of EU case law and legislative developments.
At 31 December 2009, the Group has not provided deferred tax in relation to temporary differences associated with post-acquisition
undistributed earnings of subsidiaries as the Group is in a position to control the timing of reversal of these temporary differences and it is
probable that they will not reverse in the foreseeable future. Following introduction of a UK dividend exemption regime, the tax which would
arise upon reversal of the temporary differences is not expected to exceed $20m.
Other short-term temporary differences relate primarily to provisions and accruals and share-based payments.
Notes to the Group financial statements continued