Tesco 2005 Annual Report Download - page 55

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Note 21 Financial instruments continued
Hedges
As explained in the Operating and Financial Review on pages 2 to 9, the Group hedges exposures to interest rate and currency risk.
The table below shows the amount of such gains and losses which have been included in the profit and loss account for the year,
and those gains and losses which are expected to be included in next year’s or later profit and loss accounts.
All the gains and losses on the hedging instruments are expected to be matched by losses and gains on the hedged transactions
or positions.
Unrecognised gains and losses on instruments used for hedging and those recognised in the year ended 26 February 2005 are
as follows:
Unrecognised Deferred
Gains Losses Total Gains Losses Total
£m £m £m £m £m £m
At 28 February 2004 6 (214) (208) 211 – 211
Arising in previous years and recognised
in the year ended 26 February 2005 (1) 44 43 (48) – (48)
Arising in the period to be recognised
in future years 9 (44) (35) – – –
At 26 February 2005 14 (214) (200) 163 – 163
Expected to be recognised in the period
ending 2 April 2006 3 (41) (38) 47 – 47
Note 22 Provisions for liabilities and charges
Other Property Deferred
provisions provisions taxation Total
£m £m £m £m
As previously reported – 14 572 586
Prior year adjustment†––77
At 28 February 2004 (restated) – 14 579 593
Currency translation – 3 3 6
Additions 32–5
Amount (credited)/charged in the year – (3) 149 146
At 26 February 2005 3 16 731 750
Property provisions comprise future rents payable net of rents receivable on onerous and vacant property leases, provisions for
terminal dilapidations and provisions for future rents above market value on unprofitable stores. The majority of the provision is
expected to be utilised over the period to 2017. Other provisions represents the Group’s share of net liabilities within certain joint
venture companies.
Amount provided
2005 2004
restated
£m £m
Deferred taxation
Excess capital allowances over depreciation 714 629
Other timing differences 20 (45)
Losses carried forward (3) (5)
731 579
†Prior year comparatives have been restated (see note 1).
Tesco PLC 53
†