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NOTE 19
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES
19
Accounting policy –
Deferred tax assets and deferred tax liabilities
Deferred tax assets and liabilities are calculated on the differences (temporary differences) between the carrying
amount of assets and liabilities as recognised in the consolidated financial statements and their tax cost base
multiplied by the tax rate expected to apply when these assets are recovered or liabilities are settled. The current
Australian corporate tax rate is 30%.
Deferred tax asset or liabilities are provided in full, using the liability method. An exception is made for certain
temporary differences arising from the initial recognition of an asset or liability. No deferred tax asset or liability
is recognised in relation to these temporary differences if they arose in a transaction, other than a business
combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
Deferred tax assets temporary differences
attributed to:
2016
2015
$’000
$’000
Amounts recognised in the income statement
Provisions
44,549
29,559
Accrued expenses
973
1,979
Impairment losses
14,909
29,286
Capitalised exploration
7,334
6,479
Property, plant and equipment
5,509
696
Petroleum resource rent tax
–
3,574
Tax value of losses carried-forward
88,028
48,674
Other
10,625
7,142
171,927
127,389
Amounts recognised directly in equity
Cash flow hedges
–
6,943
Long term equity investments
4,701
2,414
Share issue costs
10
10
4,711
9,367
Total deferred tax assets
176,638
136,756
Set-off of deferred tax liabilities pursuant to set-off provisions
(120,562)
(77,447)
Net deferred tax assets
56,076
59,309
Movements:
Opening balance at 1 August
136,756
113,930
Credited to the income statement – operating profit (note 18a)
33,944
19,188
(Charged)/credited to equity (note 18c)
(4,917)
3,638
Amounts recognised on acquisition of businesses
10,855
–
Closing balance at 31 July
176,638
136,756