RBS 2011 Annual Report Download - page 380

378 RBS Group 2011
23 Deferred tax
2011 2010 2009
£m £m £m
Deferred tax liability 1,945 2,142 2,811
Deferred tax asset (3,878) (6,373) (7,039)
Net deferred tax asset (1,933) (4,231) (4,228)
Net deferred tax asset comprised:
Pension
Accelerated
capital
allowances Provisions
Deferred
gains
IFRS
transition
Fair
value of
financial
instruments
Available-
for-sale
financial
assets Intangibles
Cash
flow
hedging
Share
schemes
Tax
losses
carried
forward Other Total
£m £m £m £m £m £m £m £m £m £m £m £m £m
At 1 January
2010 (724) 2,815 (1,480) 136 (373) (184) (391) 1,108 (60) (8) (5,134) 67 (4,228)
Transfers to
disposal groups —(120) (149) — — — 1 — — — — — (268)
(Disposal)/
acquisition of
subsidiaries (32) — 148 — — — 120 (631) 6 — — 65 (324)
Charge/(credit)
to income
statement 46 (91) (24) (21) 77 (20) (160) (12) 273 (12) 470 (102) 424
Charge/(credit)
to other
comprehensive
income 73 — — (2) — — (434) — 133 (6) 397 6 167
Currency
translation
and other
adjustments (1) 52 (96) (25) — 112 23 (36) (61) (5) (7) 42 (2)
At 1 January
2011 (638) 2,656 (1,601) 88 (296) (92) (841) 429 291 (31) (4,274) 78 (4,231)
Transfers to
disposal groups — (308) (52) — — 16 — — — — 159 52 (133)
Acquisition/
(disposal) of
subsidiaries 4 (76) 39 7 — — — (1) (1) — — — (28)
Charge/(credit)
to income
statement 223 27 344 262 77 46 (13) (178) 22 (3) 394 (152) 1,049
(Credit)/charge
to other
comprehensive
income (86) — — 1 — — 780 — 238 14 415 — 1,362
Currency
translation
and other
adjustments 4 7 (4) 1 — (3) 22 2 — 3 12 (4) (48)
At 31 December
2011 (493) 2,306 (1,274) 359 (219) (33) (52) 252 550 (17) (3,294) (18) (1,933)
Notes:
(1) Deferred tax assets are recognised depending on the availability of future taxable profits in excess of profits arising from the reversal of other temporary differences. Business projections prepared for
impairment reviews (see Note 17) indicate it is probable that sufficient future taxable income will be available against which to offset these recognised deferred tax assets within six years. UK losses
do not expire and Netherlands losses expire after nine years. In jurisdictions where doubt exists over the availability of future taxable profits, deferred tax assets of £3,246 million (2010 - £2,008
million; 2009 - £2,163 million) have not been recognised in respect of tax losses carried forward of £16,691 million (2010 - £9,869 million; 2009 - £7,759 million). Of these losses, none will expire
within one year, £392 million within five years and £9,505 million thereafter. The balance of tax losses carried forward has no time limit.
(2) Deferred tax liabilities of £249 million (2010 and 2009 - £279 million) have not been recognised in respect of retained earnings of overseas subsidiaries and held-over gains on the incorporation of
overseas branches. Retained earnings of overseas subsidiaries are expected to be reinvested indefinitely or remitted to the UK free from further tax. No tax is expected to arise in the foreseeable
future in respect of held-over gains. Changes to UK tax legislation largely exempts overseas dividends received on or after 1 July 2009 from UK tax.
Notes on the consolidated accounts continued