Savills plc 2012 Annual Report - (PDF) - Investor relations

Notes to the financial statementsYear ended 31 December 2012continuedIf the date for all acquisitions made during the year had been 1 January 2012, the amounts included in Group operating profit wouldhave been:£mTurnover 5.4Staff costs (2.8)Depreciation (0.1)Other operating charges (0.8)Operating profit (before finance charges) 1.716(f). Transactions with non-controlling interestsDuring the year, the Group undertook the following transactions with non-controlling interests:NameDateHoldingacquiredTotal holding at31 December 2012Savills (Vietnam) Limited October 2012 20.0% 92.1%Savills LLC December 2012 25.0% 100.0%Under IAS 27 (revised), transactions with non-controlling interests must be accounted for as equity transactions, therefore no goodwillhas been recognised. Acquisition costs related to these transactions were not significant.In October 2012, the Group acquired an additional 20.0% of the shares in Savills (Vietnam) Limited for cash consideration of £3.5m.This takes the Group’s shareholding to 92.1%. The carrying amount of Savills (Vietnam) Limited’s net assets on the date of acquisitionwas £0.3m. The Group recognised a decrease in non-controlling interest of £0.1m. The amount charged to retained earnings in respectof this transaction was £3.4m.In December 2012, the Group acquired the remaining 25.0% of the shares in Savills LLC, which operates in the United States ofAmerica. Cash consideration of £8.3m was paid. The carrying amount of Savills LLC’s net liabilities on the dates of acquisition was£8.7m. The Group recognised an increase in non-controlling interests of £2.3m. A corresponding decrease in retained earnings wasrecognised in respect of this transaction.An amount of £1.5m was credited to retained earnings reflecting a reduction in deferred consideration payable to non-controllinginterests.In 2011 the Group acquired additional stakes in Savills Italy SRL and Savills (Vietnam) Limited for a total consideration of £1.2m.17. Deferred income taxDeferred income tax assets and liabilities are only offset where there are legally enforceable rights to offset current tax assets againstcurrent tax liabilities and when the deferred income tax relates to the same fiscal authority. The deferred tax assets and liabilities areoffset when realised through current tax. The deferred income tax assets and liabilities at 31 December, without taking intoconsideration the offsetting balances within the same jurisdiction, are as follows:The movement on the deferred tax account is shown below:Group2012£m2011£mCompany2012£mDeferred tax assets– Deferred tax asset to be recovered after more than 12 months 21.4 25.8 1.8 1.3– Deferred tax asset to be recovered within 12 months 8.5 3.6 0.7 0.629.9 29.4 2.5 1.9Deferred tax liabilities– Deferred tax liability to be recovered after more than 12 months (1.2) (1.7) – –– Deferred tax liability to be recovered within 12 months (0.5) (0.4) – –(1.7) (2.1) – –2011£mDeferred tax asset – net 28.2 27.3 2.5 1.996 Savills plc Report and Accounts 2012