Telstra 2009 Annual Report Download - page 130

Telstra Corporation Limited and controlled entities
115
Notes to the Financial Statements (continued)
(a) We have recognised a deferred tax asset for the unused tax losses of
our offshore controlled entities to the extent that it is probable that
future taxable profit will be available against which the unused tax
losses can be utilised. We have prepared a management budget in line
with our current knowledge of future events to support our view of
sufficient future taxable profits being available to offset our unused
tax losses.
(b) When the underlying transactions to which our deferred tax
relates is recognised directly in equity, the temporary differences
associated with these adjustments are also recognised directly in
equity.
(c) We are able to offset deferred tax assets and deferred tax liabilities
in the statement of financial position when they relate to income
taxes levied by the same taxation authority and to the extent we
intend to settle our current tax assets and liabilities on a net basis.
Our deferred tax assets and deferred tax liabilities are netted within
the Australian tax consolidated group, as these deferred tax balances
relate to income taxes levied by the Australian Taxation Office. We do
not net deferred tax balances between controlled entities unless they
are within the same tax jurisdiction and they are intended to be
settled on a net basis.
(d) Our net deferred tax asset on our defined benefit liability for Telstra
Group is $125 million (2008: $50 million liability) and for Telstra Entity
is $125 million (2008: $48 million liability).
9. Income taxes (continued)
Telstra Group Telstra Entity
As at 30 June As at 30 June
2009 2008 2009 2008
$m $m $m $m
Deferred tax asset/(deferred tax liability)
Deferred tax items recognised in income statement
Property, plant and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,745) (1,486) (1,742) (1,510)
Intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (554) (656) (464) (547)
Borrowings and derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . (101) (24) (122) (27)
Provision for employee entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260 255 243 231
Revenue received in advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 154 28 26
Provision for workers' compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 54 49 52
Allowance for doubtful debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 62 61 52
Defined benefit liability/asset (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 87 99 89
Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 107 49 43
Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 90 65 85
Income tax losses (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 68 --
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 (22) 17 (22)
(1,551) (1,311) (1,717) (1,528)
Deferred tax items recognised in equity (b)
Defined benefit liability/asset (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 (137) 26 (137)
Derivative financial instruments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (59) (126) (38) (69)
(33) (263) (12) (206)
Net deferred tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,584) (1,574) (1,729) (1,734)
Our net deferred tax liability is split as follows (c):
Deferred tax assets recognised in the statement of financial position . . . . . . . . . . . 91--
Deferred tax liabilities recognised in the statement of financial position . . . . . . . . . (1,593) (1,575) (1,729) (1,734)
(1,584) (1,574) (1,729) (1,734)