Annual Report 2010 (PDF) - USB Bank

Notes to the Financial Statements
as at 31 December 2010
7. (Loss)/profit before tax
(Loss)/profit before tax is disclosed after charging the following:
2010 2009
€ €
Directors’ emoluments (Note 32) 614.530 729.593
Loss on sale and write-off of property and equipment 28.695 11.303
Operating lease rentals for buildings 809.309 819.078
Fees (including tax) to the independent auditors for audit
and other professional services:
- Audit of the financial statements of the Bank 54.625 54.625
- Audit-related services 5.750 5.750
- Tax services 13.053 3.450
- Other services 1.150 1.150
The above amounts are included in the category “Other operating expenses”, except for Directors’ emoluments,
which is presented in the category “Staff costs”.
8. Tax
The reconciliation of corporation tax on (loss)/profit before tax based on the applicable rates and the tax credit
is as follows:
2010 2009
€ €
(Loss)/profit before tax (6.533.540) 380.170
Corporation tax based on the applicable rates (653.354) 38.017
Tax effect of:
- Not deductible expenses 297.455 130.629
- Income not subject to tax (53.703) (97.446)
- Tax losses utilised (134.737) (73.032)
- Tax losses for the year 544.339 -
Deferred tax per the income statement - (1.832)
Corporation tax is calculated at the rate of 10% on taxable income (2009: 10%).
At 31 December 2010, the Bank had tax losses carried forward amounting to €22,1 million (2009: €17,7
million) for €17,4 million (2009: €14,4 million) of which no deferred tax asset was recognised in the statement
of financial position.
The balance of net deferred tax liability represents:
2010 2009
€ €
Difference between tax allowances and accounting depreciation 52.981 56.769
Revaluation of properties 390.260 417.392
Collective impairment 187.025 -
Tax losses utilised (468.182) (333.446)
162.084 140.715
Annual Report 2010 51