Brambles 2006 Annual Report - Alle jaarverslagen

106
Brambles
2006 Annual Report
NOTES TO AND FORMING PART OF
THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 30 June 2006
Note 9.
Income tax continued
2006
US$m
2005
US$m
Changes in deferred tax assets were as follows:
At 1 July 135.8 157.6
Charged to the income statement (32.4) (1.6)
Credited to the statement of recognised income and expense – 1.8
Credited directly to equity 8.1 1.7
Transfer to discontinued operations (23.8) –
Disposal of businesses (33.0) –
Acquisition of subsidiary 1.6 –
Offset against deferred tax liabilities (35.3) (22.9)
Currency variations (3.4) (0.8)
At 30 June 17.6 135.8
Deferred tax assets are recognised for carried forward tax losses to the extent that the realisation of the related tax benefit through
future taxable profits is probable. At reporting date, Brambles has unused tax losses of US$723.8 million (2005: US$891.6 million)
available for offset against future profits. A deferred tax asset has been recognised in respect of US$509.6 million (2005:
US$761.0 million) of such losses.
The benefit for tax losses will only be obtained if:
• Brambles derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the
losses to be realised;
• Brambles continues to comply with the conditions for deductibility imposed by tax legislation; and
• No changes in tax legislation adversely affect Brambles in realising the benefit from the deductions for the losses.
No deferred tax asset has been recognised in respect of the remaining unused tax losses of US$214.2 million (2005: US$130.6 million)
due to the unpredictability of future profit streams in the relevant jurisdictions. Included in unrecognised tax losses are losses of
US$64.5 million (2005: US$75.7 million) that will expire in 2020. Other losses may be carried forward indefinitely.
d) Components of and changes in deferred tax liabilities
Deferred tax liabilities shown in the balance sheet are represented by temporary differences attributable to:
Amounts recognised in the income statement
Accelerated depreciation for tax purposes 474.5 569.3
Other 30.6 33.2
505.1 602.5
Amounts recognised in the statement of recognised income and expense
Actuarial gains on defined benefit plans 6.8 –
Cash flow hedges 1.5 –
8.3 –
Set-off of deferred tax assets (247.5) (245.4)
Net deferred tax liabilities 265.9 357.1
Changes in deferred tax liabilities were as follows:
At 1 July 357.1 359.3
Charged to the income statement 20.3 23.3
Charged to the statement of recognised income and expense 10.1 –
Transfer to discontinued operations 0.5 –
Disposal of businesses (98.8) –
Acquisition of subsidiary 0.7 –
Offset against deferred tax asset (35.3) (22.9)
Transfer from non-current to current tax liabilities 1.7 (3.1)
Currency variations 9.6 0.5
At 30 June 265.9 357.1
At reporting date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred
tax liablities have not been recognised was US$1,453.3 million (2005: US$870.2 million). No liability has been recognised in respect of
these differences because Brambles is in a position to control the timing of the reversal of the temporary differences and it is probable
that such differences will not reverse in the foreseeable future. Unremitted earnings totalled US$1,474.6 million (2005: US$889.1 million).