Telstra 2011 Annual Report Download - page 133

Telstra Corporation Limited and controlled entities
118
Notes to the Financial Statements (continued)
(*) This includes the impact of foreign exchange movements in the
deferred tax items recognised in the income statement.
9. Income taxes
Telstra Group
As at 30 June
2011 2010
$m $m
Major components of income tax expense
Current tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,519 1,182
Deferred tax resulting from the origination and reversal of temporary differences . . . . . . . . . . . (209) 369
(Over)/under provision of tax in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 47
1,307 1,598
Notional income tax expense on profit differs from actual income tax expense recorded as
follows:
Profit before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,557 5,538
Notional income tax expense calculated at the Australian tax rate of 30% . . . . . . . . . . . . . . . 1,367 1,661
Which is adjusted by the tax effect of:
Effect of different rates of tax on overseas income . . . . . . . . . . . . . . . . . . . . . . . . . . (17) (36)
Non assessable and non deductible items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16) 74
Amended assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24) (148)
(Over)/under provision of tax in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 47
Income tax expense on profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,307 1,598
Income tax recognised directly in other comprehensive income or equity during the year . . . . . . . . 19 (9)
Telstra Group
As at 30 June
2011 2010
$m $m
(Deferred tax liability)/deferred tax asset
Deferred tax items recognised in the income statement (*)
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,434) (1,686)
Intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (876) (827)
Borrowings and derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . (90) (178)
Provision for employee entitlements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 261
Revenue received in advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 81
Provision for workers' compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 50
Allowance for doubtful debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 67
Defined benefit liability/asset (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 160
Trade and other payables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 79
Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 51
Income tax losses (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 74
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29) (14)
(1,669) (1,882)
Deferred tax items recognised in other comprehensive income or equity (c)
Defined benefit liability/asset (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (74) (20)
Derivative financial instruments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 (22)
(61) (42)
Net deferred tax liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,730) (1,924)
Our net deferred tax liability is split as follows:
Deferred tax assets recognised in the statement of financial position . . . . . . . . . . . . . . . . . -3
Deferred tax liabilities recognised in the statement of financial position . . . . . . . . . . . . . . . . (1,730) (1,927)
(1,730) (1,924)