Telstra 2010 Annual Report Download - page 123

Telstra Corporation Limited and controlled entities
108
Notes to the Financial Statements (continued)
9. Income taxes
Telstra Group
As at 30 June
2010 2009
$m $m
Major components of income tax expense
Current tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,182 1,334
Deferred tax resulting from the origination and reversal of temporary differences . . . . . . . . . . . 369 283
Under/(over) provision of tax in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 (35)
1,598 1,582
Notional income tax expense on profit differs from actual income tax expense recorded as
follows:
Profit before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,538 5,658
Notional income tax expense calculated at the Australian tax rate of 30%:. . . . . . . . . . . . . . . 1,661 1,697
Which is adjusted by the tax effect of:
Effect of different rates of tax on overseas income . . . . . . . . . . . . . . . . . . . . . . . . . . (36) 12
Non assessable and non deductible items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 (92)
Amended assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (148) -
Under/(over) provision of tax in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 (35)
Income tax expense on profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,598 1,582
Income tax recognised directly in other comprehensive income or equity during the year . . . . . . . . (9) (230)
Telstra Group
As at 30 June
2010 2009
$m $m
(Deferred tax liability)/deferred tax asset
Deferred tax items recognised in income statement
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,686) (1,745)
Intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (827) (571)
Borrowings and derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . (178) (101)
Provision for employee entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 260
Revenue received in advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 135
Provision for workers' compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 51
Allowance for doubtful debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 70
Defined benefit liability/asset (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 99
Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 61
Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 67
Income tax losses (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 84
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14) 39
(1,882) (1,551)
Deferred tax items recognised in other comprehensive income or equity (c)
Defined benefit liability/asset (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20) 26
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22) (59)
(42) (33)
Net deferred tax liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,924) (1,584)
Our net deferred tax liability is split as follows:
Deferred tax assets recognised in the statement of financial position . . . . . . . . . . . . . . . . . 39
Deferred tax liabilities recognised in the statement of financial position . . . . . . . . . . . . . . . . (1,927) (1,593)
(1,924) (1,584)