Abacus Property Group – Annual Financial Report 2018

ABACUS PROPERTY GROUP
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
4. INCOME TAX (continued)
(c) Recognised deferred tax assets and liabilities
2018 2017
$'000
$'000
Deferred income tax relates to the following:
Deferred tax liabilities
Revaluation of investment properties at fair value 10,675 8,540
Capital allowances 1,976 1,080
Other 2,209 4,948
Gross deferred income tax liabilities 14,860 14,568
Set off against deferred tax assets (2,642) (4,210)
Net deferred income tax liabilities 12,218 10,358
Deferred tax assets
Revaluation of investments and financial instruments at fair value 6,024 6,451
Provisions - other 1,500 1,500
Provisions - employee entitlements 2,272 2,929
Derecognition of deferred tax asset (losses - AHF) (607) (600)
Losses available for offset against future taxable income 655 682
Other 1,034 202
Gross deferred income tax assets 10,878 11,164
Set off of deferred tax liabilities (2,642) (4,210)
Net deferred income tax assets 8,236 6,954
Tax consolidation
AGHL and its 100% owned Australian resident subsidiaries, ASOL and its 100% owned Australian resident
subsidiaries and AHL and its 100% owned Australian resident subsidiaries have formed separate tax
consolidated groups. AGHL, ASOL and AHL are the head entity of their respective tax consolidated groups. The
head entity and the controlled entities in the tax consolidated group continue to account for their own current and
deferred tax amounts. These amounts are measured in a manner that is consistent with the broad principles in
AASB 112 Income Taxes. The nature of the tax funding agreements are discussed further below.
Nature of the tax funding agreement
Members of the respective tax consolidated groups have entered into tax funding agreements. The tax funding
agreements require payments to/from the head entity to be recognised via an inter-entity receivable (payable)
which is at call. To the extent that there is a difference between the amount allocated under the tax funding
agreement and the allocation under UIG 1052, the head entity accounts for these as equity transactions.
The amounts receivable or payable under the tax funding agreements are due upon receipt of the funding advice
from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity
may also require payment of interim funding amounts to assist with its obligations to pay tax instalments.
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