Tesco 2001 Annual Report Download - page 36

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34 TESCO PLC
NOTES TO THE FINANCIAL STATEMENTS continued
NOTE 20 Financial instruments continued
Hedges
As explained in the operating and financial review on pages 2 to 6, 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 Total net Deferred Total net
Gains Losses gains/(losses) Gains Losses gains/(losses)
£m £m £m £m £m £m
At 26 February 2000 14 (10) 4 12 – 12
Arising in previous years and recognised in the year ended 24 February 2001 (3) 2 (1) (5) – (5)
Arising in the period to be recognised in future years 30 (27) 3–––
At 24 February 2001 41 (35) 67–7
Expected to be recognised in the year ended 23 February 2002 (10) 12 2 (5) – (5)
NOTE 21 Provisions for liabilities and charges
Deferred taxation
£m
At 26 February 2000 19
Amount charged in the year 5
At 24 February 2001 24
Potential amount for deferred
Amount provided tax on timing differences
2001 2000 2001 2000
£m £m £m £m
Deferred taxation
Excess capital allowances over depreciation 3 1 405 358
Capital gains deferred by rollover relief – – – (6)
Short-term timing differences 21 18 21 18
24 19 426 370
Deferred taxation balances relate principally to short-term timing differences. Where possible, taxation on capital gains has been or will be
deferred by rollover relief under the provisions of the Taxation of Chargeable Gains Act 1992.
NOTE 22 Leasing commitments
Finance leases
£m
The future minimum finance lease payments to which the Group was committed
at 24 February 2001 and which have been guaranteed by Tesco PLC are:
Gross rental obligations 59
Less: finance charges allocated to future periods (18)
41
2001 2000
£m £m
Net amounts payable are:
Within one year 24 15
Between one and five years 17 24
After five years –27
41 66