Telstra 2012 Annual Report Download - page 136

Telstra Corporation Limited and controlled entities
106
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
2012 2011
$m $m
Major components of income tax expense
Current tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,826 1,519
Deferred tax resulting from the origination and reversal of temporary differences . . . . . . . . . . . . . . (337) (209)
Under/(over) provision of tax in prior years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 (3)
1,510 1,307
Notional income tax expense on profit differs from actual income tax expense recorded as
follows:
Profit before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,934 4,557
Notional income tax expense calculated at the Australian tax rate of 30% . . . . . . . . . . . . . . . . . 1,480 1,367
Which is adjusted by the tax effect of:
Different rates of tax on overseas income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15) (17)
Non assessable and non deductible items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 (16)
Amended assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39) (24)
Under/(over) provision of tax in prior years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 (3)
Income tax expense on profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,510 1,307
Income tax recognised directly in other comprehensive income or equity during the year . . . . . . . . . (262) 19
Telstra Group
As at 30 June
2012 2011
$m $m
(Deferred tax liability)/deferred tax asset
Deferred tax items recognised in the income statement (*)
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,241) (1,434)
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (830) (876)
Borrowings and derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (59) (90)
Provision for employee entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 252
Revenue received in advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 52
Provision for workers' compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21
Allowance for doubtful debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 64
Defined benefit liability/asset (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 138
Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 135
Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 52
Income tax losses (b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 46
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32) (29)
(1,302) (1,669)
Deferred tax items recognised in other comprehensive income or equity (c)
Defined benefit liability/asset (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 (74)
Derivative financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 13
201 (61)
Net deferred tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,101) (1,730)
Our net deferred tax liability is split as follows:
Deferred tax assets recognised in the statement of financial position . . . . . . . . . . . . . . . . . . . . 6-
Deferred tax liabilities recognised in the statement of financial position . . . . . . . . . . . . . . . . . . . (1,107) (1,730)
(1,101) (1,730)