2568.11 kb - Compass Group

55 Compass Group PLC Annual Report 20075 Tax continuedBefore2007 2006exceptional Exceptional exceptional Exceptionalitems items Total items items TotalTax credited/(charged) to equity £m £m £m £m £m £mDeferred tax (charge)/credit on actuarial gains/losseson post-employment benefits (6) – (6) 10 – 10Tax on foreign exchange movements recognised in equity 13 – 13 (10) – (10)Other current and deferred tax credits 1 – 1 3 – 3Tax on items credited to equity 8 – 8 3 – 3Recognition of deferred tax asset relating tocurrency translation differences in prior years 37 – 37 – – –Tax credited to equity 45 – 45 3 – 3Beforeand post- Self-funded short-termTax employment insurance temporaryMovement in net deferred tax asset/(liability)depreciation Intangibles benefits Tax losses provisions differences Total£m £m £m £m £m £m £mAt 1 October 2005 (51) 12 172 12 19 17 181Credit/(charge) to income 22 (8) (23) – 4 47 42Credit/(charge) to equity – (9) 10 – – (3) (2)Transfer from/(to) current tax – – (1) – – – (1)Business disposals 4 (4) – (1) – 4 3Other movements 3 2 (1) – 1 (9) (4)Exchange adjustment 1 5 (3) (1) (1) (1) –At 30 September 2006 (21) (2) 154 10 23 55 219At 1 October 2006 (21) (2) 154 10 23 55 219Credit/(charge) to income 36 (12) (45) 1 9 6 (5)Credit/(charge) to equity – (7) (8) – – 36 21Transfer from/(to) current tax (11) – – – – – (11)Business disposals 11 – (2) – – – 9Other movements – (1) 1 (2) – 5 3Exchange adjustment 2 – (4) – (2) 3 (1)At 30 September 2007 17 (22) 96 9 30 105 235PensionsNet short-term temporary differences relate principally to provisions and other liabilities of overseas subsidiaries.After netting off balances within countries, the following are the deferred tax assets and liabilities recognised in the consolidated balance sheet:2007 2006Net deferred tax balance £m £mDeferred tax assets 240 237Deferred tax liabilities (5) (18)Net deferred tax asset/(liability) 235 219Unrecognised deferred tax assets in respect of tax losses and other temporary differences amount to £43 million (2006: £55 million). Of thetotal, tax losses of £2 million will expire at various dates between 2009 and 2013. These deferred tax assets have not been recognised as the timingof recovery is uncertain. No deferred tax liability is recognised on temporary differences of £2,726 million (2006: £1,850 million) relating to theunremitted earnings of overseas operations as the Group is able to control the timing of the reversal of these temporary differences and it is probablethat they will not reverse in the foreseeable future.Net