RBS 2004 Annual Report Download - page 165

section
03
163
Annual Report and Accounts 2004
Notes on the accounts
Financial
statements
28 Deferred taxation
Provision for deferred taxation has been made as follows:
2004 2003
£m £m
Deferred tax liability 2,873 2,036
Deferred tax asset (included in Note 21, Other assets) (47) (48)
Net deferred tax 2,826 1,988
2004 2003
£m £m
Short-term timing differences (56) (49)
Capital allowances 3,248 2,440
Bad and doubtful debt provisions (399) (441)
Deferred gains 33 38
Net deferred tax 2,826 1,988
Movements during the year: £m
As previously reported 2,238
Prior year adjustment arising on implementation of FRS 17 (250)
At 1 January 2004 as restated 1,988
Currency translation and other adjustments (66)
Acquisition of subsidiaries 514
Disposal of lease receivables (43)
Charge to profit and loss account 433
At 31 December 2004 2,826
The deferred taxation balance at 31 December 2004 does not include any amounts in respect of the Group’s post-retirement benefit
liabilities which is shown on the balance sheet after deduction of a deferred taxation asset of £995 million (2003 – £566 million)
(see Note 3). The opening provision for deferred taxation has been restated following implementation of FRS 17 (see page 139).
29 Other provisions
Pensions and
other similar
Property(1) obligations Other(2) Total
£m £m £m £m
As previously reported 179 43 34 256
Prior year adjustment arising on implementation of FRS 17 — (43) — (43)
At 1 January 2004 as restated 179 — 34 213
Acquisition of subsidiaries — — 12 12
Charge to profit and loss account 18 — 2 20
Provisions utilised (33) — (14) (47)
At 31 December 2004 164 — 34 198
Notes:
(1) The Group has a number of leasehold properties where rents payable and other unavoidable costs exceed the value to the Group. Such costs arise over the period of the lease
or to the expected termination date, and the provision has been discounted due to the long-term nature of certain of these obligations.
(2) Other provisions arise in the normal course of business.