BAE-annual-report-2014

Financial statements
NOTES TO THE GROUP ACCOUNTS
CONTINUED
6. TAXATION EXPENSE continued
Tax recognised in other comprehensive income
Before
tax
£m
2014 2013
Tax benefit/
(expense)
£m
Net of tax
£m
Before
tax
£m
Tax benefit/
(expense)
£m
Net of tax
£m
Items that will not be reclassified to the income statement:
Remeasurements on retirement benefit schemes:
Subsidiaries (2,023) 482 (1,541) 918 (323) 595
Equity accounted investments (73) 16 (57) 8 (7) 1
Share-based payments – 4 4 – 4 4
Other – 1 1 – 1 1
Tax rate adjustment 1 – – – – (96) (96)
Items that may be reclassified to the income statement:
Currency translation on foreign currency net investments:
Subsidiaries 251 – 251 (246) – (246)
Equity accounted investments 13 – 13 (3) – (3)
Fair value gain on available-for-sale financial assets 4 – 4 – – –
Reclassification of cumulative currency translation reserve
on disposal – – – (8) – (8)
Amounts (charged)/credited to hedging reserve (92) 19 (73) 53 (14) 39
(1,920) 522 (1,398) 722 (435) 287
Other
reserves
£m
2014 2013
Retained
earnings
£m
Total
£m
Other
reserves
£m
Retained
earnings
£m
Current tax
Financial instruments – – – 1 – 1
Pensions – 59 59 – 60 60
Other – 1 1 – 2 2
– 60 60 1 62 63
Deferred tax
Subsidiaries 19 427 446 (15) (380) (395)
Tax rate adjustment 1 – – – – (96) (96)
Equity accounted investments – pensions – 16 16 – (7) (7)
19 443 462 (15) (483) (498)
Tax on other comprehensive income 19 503 522 (14) (421) (435)
1. The UK current tax rate was reduced from 23% to 21% with effect from 1 April 2014, and will be reduced to 20% with effect from 1 April 2015. In line with this
change, the rate applying to UK deferred tax assets and liabilities was reduced from 23% to 20%, creating a rate adjustment in 2013, which is partly reflected
in the Consolidated Income Statement and partly in the Consolidated Statement of Comprehensive Income.
Total
£m
116
BAE Systems
Annual Report 2014