BOC Report and accounts 2005 - Alle jaarverslagen

Notes to the financial statements 99
4.Tax continued
b) Deferred tax
2005 2004 2003
i) Deferred tax – UK GAAP £ million £ million £ million
Analysis
Arising from accelerated depreciation allowances 271.6 312.2 346.5
Other timing differences (27.7) (34.2) (43.7)
Tax losses and other credits available (8.3) (30.8) (30.2)
235.6 247.2 272.6
Movement during the year 1
At 1 October 2004 247.2 272.6 283.9
Exchange adjustment 6.6 (3.8) 5.7
Arising during the year (4.7) (13.5) (18.5)
Transfers to current tax (14.4) (0.2) (1.0)
Acquisitions/(disposals) of businesses – – (18.7)
Other movements 0.9 (7.9) 21.2
At 30 September 2005 235.6 247.2 272.6
1. Subsidiary undertakings only.
The balance at 30 September 2005 is shown in:
Provisions for liabilities and charges (note 22) 241.9 253.0 279.2
Less: Debtors falling due after more than one year (note 15 b)) 6.3 5.8 6.6
235.6 247.2 272.6
ii) Deferred tax – US GAAP
For US GAAP reporting, the Group follows SFAS109,Accounting for Income Taxes, in respect of deferred taxation. SFAS109 requires deferred tax to
be fully provided on all temporary differences.
The table below provides a reconciliation of deferred taxes from a UK GAAP basis to a US GAAP basis at 30 September 2005.
Adjustments
UK GAAP to US GAAP US GAAP
£ million £ million £ million
Accelerated capital allowances 271.6 – 271.6
Other temporary differences (27.7) (6.3) (34.0)
Tax losses and other credits available (8.3) – (8.3)
235.6 (6.3) 229.3
1. The UK deferred tax balance of £235.6 million does not include the deferred tax asset of £98.4 million relating to the Group’s net pension liabilities.As required by the applicable UK GAAP
accounting standard, FRS17, this asset is set against the relevant retirement benefit liability to show the net position (see note 8 a)). If it was included above, it would be wholly reversed in the
adjustments to US GAAP.
US GAAP
£ million
Movement during the year
At 1 October 2004 237.0
Exchange adjustment 8.0
Arising during the year 2 22.2
Transfers to current tax (14.4)
Acquisitions/(disposals) of businesses –
Other movements 3 (23.5)
At 30 September 2005 229.3
2. The amount arising during the year includes a charge of £28.5 million in respect of the undistributed earnings of foreign subsidiaries and joint ventures.
3. This mainly relates to the deferred tax on an additional minimum pension liability under US GAAP. See note 8 c) and 30 f).