Ryanair 2012 Annual Report Download - page 167

167
At March 31,
2012
2011
2010
€M
€M
€M
Reconciliation of deferred tax
At beginning of year ................................................................................................
267.7
199.6
155.5
Adjustment in respect of prior year provisions ...........................................................
-
-
(1.7)
Release of deferred tax asset for prior-year net operating losses ................................
26.4
(1.9)
6.6
New temporary differences on property, plant and equipment,
derivatives, pensions and other items ................................................................
25.3
70.0
39.2
At end of year ..............................................................................................................
319.4
267.7
199.6
As at March 31, 2012, a deferred tax asset of €5 million was recognised in respect of net operating
losses incurred and available to carry forward to future periods (2011: €31.4 million, 2010: €29.5 million). The
recoverability of the deferred tax asset is based on future income forecasts which demonstrate that it is more
likely than not that future profits will be available in order to utilise the deferred tax asset. The deferred tax
asset‘s recoverability is not dependent on material improvements over historical levels of pre-tax income,
material changes in the present relationship between income reported for financial and tax purposes, or material
asset sales or other non-routine transactions.
New temporary differences arising in the year to March 31, 2012 consisted of temporary differences of
a charge of €41.4 million for property, plant and equipment recognised in the income statement, a credit of
€15.2 million for derivatives and a credit of €0.9 million for pensions, all recognised in other comprehensive
income. The charge in the year to March 31, 2011 consisted of temporary differences of a charge of €43.7
million for property, plant and equipment recognised in the income statement, a charge of €25.6 million for
derivatives and a charge of €0.7 million for pensions, all recognised in other comprehensive income. The charge
in the year to March 31, 2010 consisted of temporary differences of a charge of €30.2 million for property, plant
and equipment recognised in the income statement and a charge of €9.0 million for derivatives, all recognised in
other comprehensive income.
The components of the tax expense/(credit) in the income statement were as follows:
Year ended
March 31,
2012
Year ended
March 31,
2011
Year ended
March 31,
2010
€M
€M
€M
Corporation tax charge in year .......................................................................................
4.9
4.4
0.8
Adjustment in respect of prior-year provisions ..............................................................
-
0.1
(2.0)
Deferred tax charge relating to origination and reversal of
temporary differences ............................................................................................
67.7
41.8
36.9
72.6
46.3
35.7
The following table reconciles the statutory rate of Irish corporation tax to the Company‘s effective
corporation tax rate:
Year ended
March 31,
2012
Year ended
March 31,
2011
Year ended
March 31,
2010
%
%
%
Statutory rate of Irish corporation tax ................................................................
12.5
12.5
12.5
Adjustments for earnings taxed at higher rates ..............................................................
0.2
0.2
0.1
Adjustments for earnings taxed at lower rates ...............................................................
(1.1)
(0.9)
(1.1)
Loss on impairment of available-for-sale financial asset ................................
-
-
0.5
Adjustments for prior year over-provisions ................................................................
-
-
(0.6)
Other differences ................................................................................................
(0.1)
(0.8)
(0.9)
Total effective rate of taxation .......................................................................................
11.5
11.0
10.5