Inspiring New Zealanders on Every Screen - Tvnz

42 / TVNZ ANNUAL REPORT FY2009Notes to the Financial Statements (continued)For the year ended 30 June 2009GroupCompany2009 2008 2009 2008$000 $000 $000 $0008) Income taxa) Income taxThe major components of income tax expense are:Income StatementCurrent income taxCurrent period 477 4,720 506 4,780Adjustments for prior period (22) 24 (22) 1455 4,744 484 4,781Deferred income taxOrigination and reversal of temporary differences 1,047 5,578 1,002 5,526Impact of change in corporate tax rate 0 609 0 6091,047 6,187 1,002 6,135Total income tax expense 1,502 10,931 1,486 10,916b) Income tax recognised directly in equityNet movement on revaluation of cash flow hedges (43) 55 (43) 55Total income tax recognised directly in equity (43) 55 (43) 55c) Reconciliation of income tax expenseProfit before income tax for the period 3,604 30,357 4,563 30,383Taxation at 30% (2008 - 33%) 1,081 10,018 1,369 10,026Adjusted for the tax effect of:Non deductible expenditure 139 280 139 280Share of results of associated company 304 0 0 0Income tax (over)/under provided in prior years (22) 24 (22) 1Impact of change in corporate tax rate 0 609 0 609Total tax expense 1,502 10,931 1,486 10,916d) Recognised deferred tax assetsCurrentIncome TaxGroup Company2009 2009DeferredIncome TaxCurrentIncome TaxDeferredIncome Tax$000 $000 $000 $000Opening balance 942 12,323 942 12,245Charged to income statement (455) (1,047) (484) (1,002)Charged to equity 0 (43) 0 (43)Other payments 1,851 0 1,896 0Closing balance 2,338 11,233 2,354 11,200Tax expense in income statement (1,502) (1,486)Amounts recognised in the balance sheet:Deferred tax asset 11,233 11,200