Australia Post Annual Report 2008–09

4 Finance costs
Bonds (1)
Interest rate swaps (1)
(Gain)/loss arising on interest rate swaps in a designated
fair value hedge relationship
Loss/(gain) on adjustment to hedged item in a designated
fair value hedge relationship
Unwinding of discount (see note 20)
Other (1)
2009
$m
33.9
2.8
(4.3)
3.3
1.6
0.7
Consolidated Corporation
Total finance costs 38.0 40.6 37.2 40.3
(1) Interest expense calculated using the effective interest method.
5 Income tax
Major components of income tax expense for the years ended 30 June are:
(a) Income statement
Current income tax
Current income tax charge
Adjustments in respect of current income tax of previous years
Deferred income tax
Relating to origination and reversal of temporary differences
1.1 (7.9)
4.8 (5.8)
Income tax expense reported in the income statement 120.4 160.1 128.7 165.1
(b) Statement of recognised income and expense
Deferred income tax related to items
charged or credited directly to equity
Net loss on revaluation of cashflow hedges
Net loss on actuarial gains/losses
119.7
(0.4)
(0.2)
(338.0)
2008
$m
32.4
5.6
5.3
(5.4)
2.1
0.6
168.1
(0.1)
(0.4)
(54.9)
2009
$m
33.9
2.8
(4.3)
3.3
1.4
0.1
123.9
0.0
(0.2)
(338.0)
Income tax expense reported in equity (338.2) (55.3) (338.2) (55.3)
(c) Numerical reconciliation between aggregate tax expense recognised in the income statement and tax expense
calculated per the statutory income tax rate
A reconciliation between tax expense and the product of accounting profit before income tax multiplied by the group’s applicable income tax rate
is as follows:
Accounting profit before income tax from continuing operations 380.9 592.2 374.1 611.3
Accounting profit before income tax 380.9 592.2 374.1 611.3
At the group’s statutory income tax rate of 30% (2008: 30%)
114.3 177.7
112.2 183.4
Adjustments in respect of current income tax of previous years
(0.4) (0.1)
0.0 0.4
Investment property
2.2 (14.2)
2.2 (14.2)
Unrecognised tax losses
0.9 1.3
0.0 0.0
Expenditure not allowable for income tax purposes
(0.2) 0.9
(0.4) 1.2
Write-down and impairment not allowable for income tax purposes
7.3 3.6
19.8 3.6
Share of net profits of jointly controlled entities
(3.2) (6.7)
0.0 0.0
Dividend rebate
0.0 0.0
(4.4) (6.2)
Sundry items
(0.5) (2.4)
(0.7) (3.1)
At effective income tax rate of 31.6% (Corp: 34.4%) (2008: 27.0%, Corp: 27.0%) 120.4 160.1 128.7 165.1
Income tax expense reported in income statement 120.4 160.1 128.7 165.1
2008
$m
32.4
5.6
Australia Post Annual Report 2008–09 | Financial and statutory reports 73
5.3
(5.4)
2.0
0.4
170.5
0.4
(0.4)
(54.9)