93 / 132
Consolidated
2017
$’000
2016
$’000
The balance comprises temporary differences attributable to:
Property, plant and equipment
158,299
193,700
Other receivables
2,173
3,012
Deferred tax liabilities
160,472
196,712
Movements:
Opening balance at 1 July
196,712
290,478
Charged/(credited) to the consolidated income statement related
to property, plant and equipment
8,303
(29,336)
Charged/(credited) to the consolidated income statement related
to other receivables
(839)
(1,345)
Charged/(credited) to equity related to property, plant and
equipment
(43,704)
(63,085)
Closing balance at 30 June before set off
160,472
196,712
Set off to deferred tax assets
(160,472)
(196,712)
Net deferred tax liability
-
-
(ii) Deferred tax liabilities
Accounting policy
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities based on the current periods
taxable income and any adjustments in respect of prior years. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted by the reporting date.
Deferred tax liabilities (DTLs) are recognised for all taxable temporary differences between the
carrying amount of assets and liabilities for financial reporting and the amounts used for taxation
purposes.
Deferred tax assets (DTAs) are recognised for all deductible temporary differences, carry forward of
unused tax offsets and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the unused tax offsets and losses
can be utilised.
Division 58 of the Income Tax Assessment Act 1997 (“Division 58”), has entitled the Group to value
certain assets, for taxation purposes, using pre-existing audited book values or the notional written
down values of the assets as appropriate. This effectively means the tax depreciable value of these
rail infrastructure and related assets significantly exceeds the carrying value. Accordingly, Division 58
results in significant deductible temporary differences and potential DTAs. The carrying amount of
DTAs is reviewed at each reporting date and adjusted to the extent that it is probable that sufficient
taxable profit will be available to allow the deferred tax asset to be utilised.
DTAs and DTLs are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date. DTAs and DTLs are offset only if a legally enforceable
right exists to set off current tax assets against current tax liabilities and the DTAs and DTLs relate to
the same taxable entity and the same taxation authority.
91
NOTE 7
NON-FINANCIAL ASSETS AND LIABILITIES (CONTINUED)