GCS ANNUAL REPORT 2014

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
NOTE 5. REVENUE, OTHER INCOME AND EXPENSES (continued)
e. Operating leases expensed through profit and loss
Properties 5,515 4,980
Motor vehicles and mobile equipment 601 394
6,116 5,374
f. Impairment of other assets
Inventories (541) (607)
(541) (607)
g. Employee benefit expenses
Defined contribution superannuation expense 4,690 5,754
4,690 5,754
NOTE 6. INCOME TAX EXPENSE
2014
$’000
2013
$’000
a. Income tax expense
Current tax 2,301 5,617
Deferred tax 194 1,708
Adjustment for tax of prior periods 431 224
Aggregate income tax expense 2,926 7,549
Deferred income tax (benefit)/expense included in income tax expense comprises:
Decrease/(increase) in deferred tax assets (35) (450)
(Decrease)/increase in deferred tax liabilities 229 2,158
194 1,708
b. Numerical reconciliation of tax expense to prima facie tax payable
Profit from operations before income tax expense 11,091 22,889
Tax at the Australian tax rate of 30% (2013: 30%) 3,327 6,867
Tax effect of amounts which are not deductible (taxable) in calculating taxable income (832) 448
Adjustment for tax of prior periods 431 234
Income tax expense 2,926 7,549
c. Amounts recognised directly in equity
Net deferred tax – debited (credited) directly to equity - (504)
78 GLOBAL CONSTRUCTION SERVICES LIMITED ANNUAL REPORT 2014