Annual Report & Accounts - Countrywide Farmers

Notes to the Financial Statements (Continued)
For the year ended 31 May 2008
16) PROVISIONS FOR LIABILITIES AND CHARGES
Members' Retirement Scheme and Deferred tax
2008 2007 2008 2007
Group Group Company Company
£000s £000s £000s £000s
Members' Retirement Scheme 1,273 1,310 1,273 1,310
Deferred tax - 94 - -
At 31 May 2008 1,273 1,404 1,273 1,310
Members' Retirement Scheme Group and Company
£000s
At 1 June 2007 1,310
Paid in Year (37)
At 31 May 2008 1,273
The Members' Retirement Scheme is a closed non-interest bearing fund, made up of 60% of members trading bonuses paid
to former Midland Shires Farmers Limited members. Funds are paid to individual members upon request, gross of any tax
after they reach the age of 65, or to the estate of deceased members.
17) DEFERRED TAX ASSET
Group Group Company Company
2008 2007 2008 2007
£000s £000s £000s £000s
Accelerated Capital Allowances 33 (223) 34 (223)
Short term timing differences (169) (99) (168) (98)
Losses (700) (500) (700) (500)
Capital Gains - 916 - -
(836) 94 (834) (821)
Deferred tax on pension liability (2,144) (1,918) (2,144) (1,918)
(2,980) (1,824) (2,978) (2,739)
Movement in Deferred Tax
Group
Total
2008
£000s
Deferred tax asset at 1 June 2007 (1,824)
Transferred in from Joint Venture 243
Deferred tax credit to the profit and loss account (806)
Deferred tax credit to the statement of total recognised gains and losses (593)
Deferred tax asset at 31 May 2008 (2,980)
In accordance with the provisions of FRS 19 'Deferred Tax', deferred tax assets have been recognised to the extent that it is
more likely than not that they are recoverable on the basis of current forecast and uncertainties. The total asset not recognised
for the Group and Company is £1,476,000 (2007: £1,831,500) all of which relates to trading losses. In addition to this there
is an unprovided deferred tax liability of £918,000 (2007: £983,000) in respect of gains rolled into assets which are not going
to be sold in the foreseeable future.
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