Download full Annual Report and Accounts - Kingfisher

Kingfi sher plc
Annual Report
and Accounts
2009/10
85
Credit risk
The Group deposits surplus cash with a number of banks with strong credit ratings and with money market funds which have the strongest, AAA, credit rating.
A credit limit for each counterparty is agreed by the Board covering the full value of deposits and a proportion of the value of derivative contracts. The credit risk is
reduced further by spreading the investments and derivative contracts across several counterparties. At 30 January 2010, the highest cash deposit with a single
counterparty was £101m (2008/09: £89m).
The Group’s exposure to credit risk at the reporting date is the carrying value of cash at bank and short term deposits and the fair value of derivative assets.
No further credit risk provision is required in excess of the normal provision for bad and doubtful debts as the Group has a low concentration of credit risk in respect
of trade receivables. Concentration of risk is limited as a result of low individual balances with short maturity spread across a large number of unrelated customers.
At 30 January 2010, trade and other receivables that are past due but not provided against amount to £29m (2008/09: £20m), of which £4m (2008/09: £1m) are
over 120 days past due.
Capital risk
Capital risk management disclosures are provided in the Financial review on page 25.
25 Deferred tax
£ millions 2009/10 2008/09
Deferred tax assets 27 26
Deferred tax liabilities (197) (226)
(170) (200)
Deferred tax assets and liabilities are offset against each other when they relate to income taxes levied by the same tax jurisdiction and when the Group intends
to settle its current tax assets and liabilities on a net basis.
Post
Accelerated tax Gains on employment
£ millions depreciation property Provisions Tax losses benefi ts Other Total
At 1 February 2009 (66) (187) 26 5 23 (1) (200)
(Charge)/credit to income statement (11) 4 (3) (5) (4) – (19)
Credit to equity – – – – 38 5 43
Exchange differences 1 5 (3) 1 – 2 6
At 30 January 2010 (76) (178) 20 1 57 6 (170)
At 3 February 2008 (122) (183) 23 7 (23) 5 (293)
Credit/(charge) to income statement 33 11 2 (2) – – 44
Credit/(charge) to equity – – – – 43 (6) 37
Disposal of subsidiaries 37 9 (2) – 1 – 45
Exchange differences (14) (24) 3 – 2 – (33)
At 31 January 2009 (66) (187) 26 5 23 (1) (200)
At the balance sheet date, the Group has unused tax losses of £316m (2008/09: £228m) available for offset against future profi ts. A deferred tax asset has been
recognised in respect of £7m (2008/09: £14m) of such losses. No deferred tax asset has been recognised in respect of the remaining £309m (2008/09: £214m)
due to the unpredictability of future profi t streams. Included in unrecognised tax losses are tax losses arising in China of £245m (2008/09: £170m) which can only
be carried forward in the next one to fi ve years and tax losses arising in Spain of £27m (2008/09: £36m) which can only be carried forward for up to 15 years.
Other losses may be carried forward indefi nitely.
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries and joint ventures. As the earnings are continually reinvested by the Group, no
tax is expected to be payable on them in the foreseeable future. Earnings which could be remitted on which there would be tax to pay total £91m (2008/09: £193m).
Included within the charge to the income statement for the year is a £19m charge (2008/09: £49m credit) relating to continuing operations and a £nil charge
(2008/09: £5m charge) relating to discontinued operations. In the prior year the Group disposed of Castorama Italy (see note 34).