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NOTE 7 (CONTINUED)
INCOME TAX EXPENSE/(BENEFIT)
(c) Amounts charged or credited directly to equity
Consolidated
2016
$’000
2015
$’000
Deferred income tax related to items charged directly to equity
Net (loss)/gain on revaluation of infrastructure assets
(59,254)
(18,727)
Net (loss)/gain on defined benefit plan
(2,330)
1,576
Net gain on interest rate swap
377
557
Net gain on foreign exchange hedge
9
-
(61,198)
(16,594)
Deferred income tax charge included in equity comprises:
(Decrease)/increase in deferred tax liabilities
(63,085)
11,999
(Increase)/decrease in deferred tax assets
1,887
(28,593)
(61,198)
(16,594)
The income tax charged directly to equity of ($59.3m) (2015: ($18.7m)) is the tax effect of the
reversal of revaluations of ($197.5m) (2015: $62.4m), see note 8(b). The income tax charged
directly to equity of ($2.3m) (2015: $1.6m) is the tax effect of the defined benefit amount included
in other comprehensive income ($7.7m) (2015: $5.3m), see note 8(f).
(d) Tax consolidation legislation
Australian Rail Track Corporation Ltd and its wholly owned Australian controlled entities consolidated
for income tax purposes as of 1 July 2003. The accounting policy in relation to this legislation is set
out in note 21(k).
NOTE 8
NON-FINANCIAL ASSETS AND LIABILITIES
(a) Inventories
Consolidated
2016
$’000
2015
$’000
Current assets
Raw materials - at cost
29,094
30,553
29,094
30,553
65