Petra Diamonds Limited
Annual Report and Accounts 2013
120
24. Deferred taxation
US$ million
2013
2012
Balance at beginning of the year
45.1
37.7
Income statement charge
24.6
10.5
Foreign currency translation difference
(11.5)
(3.1)
Balance at the end of the year
58.2
45.1
Comprising:
Deferred tax asset
(5.9)
(9.3)
Deferred tax liability
64.1
54.4
58.2
45.1
The deferred tax assets and liabilities are offset to determine the amounts stated in the Statement of Financial Position when
the taxes can legally be offset and will be settled net.
Deferred taxation comprises:
US$ million
Total
2013
Recognised
2013
Unrecognised
Deferred tax liability:
– Property, plant and equipment
155.5
155.5
– Foreign exchange allowances
0.3
0.3
155.8
155.8
Deferred tax asset:
– Capital allowances
(81.5)
(78.3)
(3.2)
– Provisions and accruals
(17.7)
(15.5)
(2.2)
– Foreign exchange allowances
(2.5)
(0.8)
(1.7)
– Tax losses
(42.1)
(3.0)
(39.1)
(143.8)
(97.6)
(46.2)
Net deferred taxation liability/(asset)
12.0
58.2
(46.2)
US$ million
Total
2012
Recognised
2012
Unrecognised
Deferred tax liability:
– Property, plant and equipment
152.5
152.5
– Foreign exchange allowances
0.1
0.1
152.6
152.6
Deferred tax asset:
– Capital allowances
(83.3)
(81.3)
(2.0)
– Provisions and accruals
(17.1)
(16.8)
(0.3)
– Foreign exchange allowances
(1.8)
(1.8)
– Tax losses
(37.3)
(7.6)
(29.7)
(139.5)
(107.5)
(32.0)
Net deferred taxation liability/(asset)
13.1
45.1
(32.0)
Deferred tax assets of US$5.9 million (30 June 2012: US$9.3 million) have been recognised in respect of tax losses and other
temporary differences to be utilised by future taxable profits at Kimberley Underground, which incurred tax losses during the year.
The Directors believe it is probable these tax assets will be recovered through future taxable income or the reversal of temporary
differences, reflecting increased treatment capacity as the Wesselton plant has now been commissioned.
Movements in deferred tax include amounts recognised in the income statement, together with foreign exchange retranslation.
The income statement charge for the year comprises movements in deferred tax of US$20.0 million (30 June 2012: US$21.3 million)
in respect of property, plant and equipment and associated capital allowances, US$0.4 million credit (30 June 2012: US$7.4 million credit)
in respect of provisions and US$3.7 million (30 June 2012: US$0.9 million credit) in respect of tax losses, with the remainder
US$1.3 million (30 June 2012: $2.5 million credit) comprised of immaterial items.
Notes to the Annual Financial Statements
For the year ended 30 June 2013 continued
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