Marks and Spencer 1998 Annual Report Download - page 66

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THE GROUP THE COMPANY
£m £m
At 1 A pril 1997 31.8 27.9
Utilised during the year (0.6) Ð
Exchange differences (0.2) Ð
At 31 March 1998 31.0 27.9
The provision utilised during the year mainly represents ex penditure related to discontinued Canadian operations.
The provisions at 31 March 1998 include £27.8m for post-retirement health benefits (see note 9B) and £3.2m for discontinued
Canadian operations.
THE GROUP THE COMPANY
1998 1997 1998 1997
£m £m £m £m
Deferred tax provision arising on short-term timing differences 50.4 43.9 47.6 41.0
Deferred tax asset arising on post-retirement health benefits (8.6) (9.2) (8.6) (9.2)
41.8 34.7 39.0 31.8
Recoverable A CT offset against deferred tax provision (see note 13) (41.8) (34.7) (39.0) (31.8)
–ЖÐ
The movement in deferred tax comprises:
At 1 A pril 34.7 24.0 31.8 21.7
Charged to the profit and loss account (see note 5) 7.4 11.0 7.2 10.1
Exchange differences (0.3) (0.3) –Ð
At 31 March 41.8 34.7 39.0 31.8
Deferred tax is not provided in respect of liabilities which might arise on the distribution of unappropriated profits of overseas subsidiaries.
Deferred tax not provided on the ex cess of capital allowances over depreciation on tangible fix ed assets is shown in note 31B.
The GroupÕs borrowings and net assets (ex cluding borrowings) by currency at 31 March were as follows:
THE GROUP
1998 1997
Net assets Net assets
by currency Gross Net by currency Gross Net
of operations(1) debt(2) investments of operations(1) debt( 2) investments
Currency £m £m £m £m £m £m
Sterling assets/ liabilities 5,360.4 (584.2) 4,776.2 4,673.4 (457.5) 4,215.9
Matched assets/ liabilities(3)
US dollar 468.9 (492.9) (24.0) 397.3 (427.9) (30.6)
Other 413.0 (99.4) 313.6 430.4 (86.4) 344.0
Sterling plus total matched assets/liabilities 6,242.3 (1,176.5) 5,065.8 5,501.1 (971.8) 4,529.3
(1) Net assets by currency of operations ex clude gross debt and are shown after taking into account the effect of swaps and foreign
ex change contracts.
(2) The amounts shown above for gross borrowings are after taking into account the effect of any currency swaps and forward foreign
ex change contracts.
(3) Matched assets and liabilities are those that generate no gain or loss in the profit and loss account, either because they are
denominated in the same currency as the Group operation to which they belong, or because they qualify under SSA P20 as a
foreign currency borrowing providing a hedge against a foreign equity investment.
(4) There were no significant unmatched foreign currency assets or liabilities.
20 PROVISIONS FOR LIABILITIES AND CHARGES
21 DEFERRED TAXATION
22 CURRENCY ANALYSIS OF NET ASSETS
NO TES TO TH E FIN AN CIAL STATEM EN TS
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