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Annual Report & Accounts 2010
Notes to the Financial Statements
for the year ended 31 December 2010
1. Statement of Accounting Policies
(continued)
Deferred taxation
Deferred tax is recognised in respect of all timing
differences between accounting and taxation profits
which have originated but not reversed at the balance
sheet date. Deferred tax is measured at the average tax
rate expected to apply in the periods in which the timing
differences are expected to reverse. Capital gains tax is
not provided for on the surplus arising on the revaluation
of estate property except where such property is subject
to a binding agreement for sale that will give rise to
taxation. Deferred tax is measured on a non-discounted
basis.
Deferred tax is recognised in respect of all timing
differences that have originated but not reversed at the
balance sheet date where transactions or events that
result in an obligation to pay more tax in the future or
a right to pay less tax in the future have occurred at the
balance sheet date. Timing differences are differences
between the taxable profits and the results as stated in
the financial statements that arise from the inclusion of
gains and losses in tax assessments in periods different
from those in which they are recognised in the financial
statements.
Provisions
Provisions are recognised when a past event gives rise
to a present obligation and when a settlement amount
can be reliably estimated.
Government grants
Government grants relating to tangible fixed assets
are credited against the fixed assets to which they relate
and are amortised over the expected useful economic
lives of the assets concerned.
Investments
Current asset investments are stated at lower of cost
and net realisable value. Investments comprise monies
on short term deposits.
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