Landcorp - Crown Ownership Monitoring Unit

LANDCORP FARMING LIMITED AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS CONTINUEDNote 34 – Income Tax (continued)The prima facie income tax expense on accounting profit reconciles to the recognised tax expense/(income) as follows:Group Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Profit before tax (2,373) (2,237) (18,399) 21,315Income tax expense /(income) calculated at 30% (712) (671) (5,520) 6,395Prior year current tax adjustments 6,379 170 5,419 (254)Increase in income tax expense due to:Non-deductible expenses 5,916 50 11,271 50Unrecoverable development expenditure 43 95 – –Non-deductible asset impairment – (6) – –Donations 26 4 26 4Other (462) 3,298 (28) 2,723Decrease in income tax expense due to:Land development expenditure (9,459) (4,286) (9,205) (3,823)Deductions arising from livestock (1,685) (8,787) (1,871) (10,664)Non assessable income 140 1,560 (477) (368)Other 726 (3,994) (1,313) (3,839)Effect on tax balances due to change in income tax rate 2,556 – 2,095 –Total Income Tax Expense/(Income) 3,468 (12,567) 397 (9,776)The corporate income tax rate in New Zealand was changed from 30% to 28% with effect from the 2011/12 tax year. Due to Landcorp’s taxyear, this will be effective for Landcorp from 1 July 2011. This revised rate has not impacted the tax payable for the current period but will doso in future periods. The impact of the change in tax rate has been taken into account in the measurement of deferred taxes at the end of thereporting period.B – DEFERRED INCOME TAX RECOGNISED DIRECTLY IN EQUITY AND OTHER COMPREHENSIVE INCOMEThe following deferred amounts were charged/(credited) directly to equity during the period:Group Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Property, plant and equipmentEffect on tax balances due to change in income tax rate (1,128) – (1,128) –Property revaluations (1,584) (6,358) (1,584) (6,358)Available-for-sale financial assetsEffect on tax balances due to change in income tax rate (41) – (107) –Revaluations of available-for-sale financial assets (30) (2,138) (50) (1,470)Total Deferred Income Tax Recognised Directly In Equityand Other Comprehensive Income (2,783) (8,496) (2,869) (7,828)86