Setting new standards - Friends Life

PARENT COMPANY ACCOUNTS
ABBREVIATIONS AND DEFINITIONS
Notes to the consolidated accounts continued
24. Deferred tax assets and liabilities
(a) Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
2006 2005
Assets Liabilities Net Assets Liabilities Net
£m £m £m £m £m £m
Property and equipment 40 - 40 26 - 26
Intangible assets - (176) (176) - (223) (223)
Unrealised gains on investments - (166) (166) - (83) (83)
Employee benefits 37 - 37 33 - 33
Deferred acquisition costs - (73) (73) - (73) (73)
Tax value of recognised tax losses 9 - 9 11 - 11
Short-term temporary differences 11 - 11 21 - 21
Net deferred tax assets/(liabilities) 97 (415) (318) 91 (379) (288)
(b) Movement in temporary differences during the year
1 January Recognised Recognised Acquired 31 December
2006 in income in equity in year 2006
£m £m £m £m £m
Property and equipment 26 14 - - 40
Intangible assets (223) 38 9 - (176)
Unrealised gains on investments (83) (83) - - (166)
Employee benefits 33 2 2 - 37
Deferred acquisition costs (73) - - - (73)
Tax value of recognised tax losses 11 (2) - - 9
Short-term temporary differences 21 (10) - - 11
Net deferred tax (liabilities)/assets (288) (41) 11 - (318)
1 January Recognised Recognised Acquired 31 December
2005 in income in equity in year 2005
£m £m £m £m £m
Property and equipment 27 (1) - - 26
Intangible assets (201) 62 2 (86) (223)
Unrealised gains on investments (15) (68) - - (83)
Employee benefits 11 10 12 - 33
Deferred acquisition costs (25) (57) - 9 (73)
Tax value of recognised tax losses 32 (21) - - 11
Short-term temporary differences 6 9 - 6 21
Net deferred tax (liabilities)/assets (165) (66) 14 (71) (288)
Friends Provident Annual Report & Accounts 2006 131