REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

Notes on the consolidated balance sheet continued24. Deferred taxation liabilities/(assets) continuedVALUATIONASSETS ALLOWANCE LIABILITIES NETTotal timing differences at 31 December 1999 £M £M £M £MFixed asset related (59) 44 20 5Unrecognised tax losses (19) 19 – –Other (83) 18 20 (45)(161) 81 40 (40)The valuation allowance increased by £16 million during 1999. Where appropriate deferred tax assets and liabilities are netted for balance sheet presentationpurposes. The net deferred tax balance has been analysed as:1999 1998 1997£M £M £MDeferred tax asset (included in debtors – see note 18) (63) (65) (74)Deferred tax liability (included in provisions for liabilities and charges) 23 14 1625. Other provisionsDuring 1999 Reuters has complied with the requirements of UK Financial Reporting Standard No. 12 Provisions, Contingent Liabilities and Contingent Assets.Other provisions which were previously included within creditors are now shown separately on the face of the consolidated balance sheet. Comparative figures havebeen adjusted accordingly.The movement in other provisions during 1999 was as follows:LEGAL/RATIONALISATION COMPLIANCE PROPERTY OTHER TOTAL£M £M £M £M £M31 December 1998As previously reported – – – – –Restatement 36 19 6 5 6631 December 1998 restated 36 19 6 5 66Charged against profit 8 7 1 1 17Utilised in the year (26) (18) (4) (2) (50)Released (5) (1) – (1) (7)31 December 1999 13 7 3 3 26At the end of 1998, the costs of a number of restructuring programmes resulting from the divisional management reorganisation were provided for. During 1999these programmes were implemented and a small number of new programmes were introduced. The final costs were slightly below those anticipated and resulted inthe release of £5 million of the 31 December 1998 balance. At the end of 1999 the provision for incomplete rationalisation programmes had fallen to £13 millionfrom £36 million at the end of 1998.The legal/compliance provision represents the expected cost of settling disputes arising from contractual arrangements with third party suppliers, includingassociated legal and professional fees.The ongoing rationalisation of business premises occupied by Reuters particularly within the UK has resulted in the need to provide for unavoidable future rentalcosts. Property provisions also reflects Reuters contractual liability at the balance sheet date to make good dilapidations under ongoing rental agreements.64 Reuters Group PLC Annual Report 1999