COMPUTERSHARE ANNUAL REPORT 2008

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5. INCOME TAXa) Income tax expenseConsolidatedParent Entity2008 2007 2008 2007$000 $000 $000 $000Current tax expense 78,360 74,101 26,208 20,625Deferred tax expense 27,770 8,597 (2,268) (101)(Under/ (over) provided in prior years) (4,572) 917 - (125)Total income tax expense 101,558 83,615 23,940 20,399Deferred income tax (revenue)/ expense includedin income tax expense comprises:Decrease/ (increase) in deferred tax assets (note 17) (20,875) 7,937 (3,711) (533)(Decrease)/ increase in deferred tax liabilities (note 22) 48,645 660 1,443 43227,770 8,597 (2,268) (101)b) Numerical reconciliation of income tax expense to prima facie tax payableProfit before income tax expense 390,684 323,492 260,283 113,740The tax expense for the financial year differs from the amount calculated on theprofit. The differences are reconciled as follows:Prima facie income tax expense thereon at 30% 117,205 97,048 78,085 34,122Tax effect of permanent differences:Non deductible expenses (including depreciation and amortisation) 1,412 1,465 - 203Research and development allowance (2,199) (1,219) - -Tax losses utilised not previously brought to account - (6,993) - -Benefit of tax losses not booked 796 - - -Non deductible Share based payments 550 1,808 58 1,133Finance costs - (3,453) - -Rebatable/non-assessable dividend - - (52,574) (14,713)Other deductible items (11,503) (9,357) - -Non assessable accounting profit on the sale of assets (774) (2,573) (99) 46Other (2,921) (517) (1,530) (267)Differential in overseas tax rates 5,054 6,865 - -Prior year tax (over)/under provided (4,572) 917 - (125)Restatement of deferred tax balances due to income tax rate changes (1,490) (376) - -Income tax expense (benefit) 101,558 83,615 23,940 20,39902-13Overview14-36Governance37-88Financials89-92Reportsc) Amounts recognised directly in equityNet deferred tax – debited/(credited) directly to equity (note 17 and note 22) 650 (1,135) - 32d) Unrecognised tax lossesAs at 30 June 2008 companies within the consolidated entity had estimated unconfirmed gross tax losses (including capital losses)of $45,916,998 (2007: $44,229,974) available to offset against future years’ taxable income. The benefit of these losses has notbeen brought to account as realisation is not probable. The parent company had estimated unconfirmed gross income tax losses(including capital losses) of $nil (2007: $nil).e) Tax consolidation legislationComputershare Limited and its wholly-owned Australian entities implemented the tax consolidation regime with effect from1 July 2002. The Australian Taxation Office has been formally notified of this decision.The relevant entities have also entered into a tax sharing deed, which includes tax funding arrangements. As a consequence,Computershare Limited, as the head entity in the tax consolidation Group, has recognised the current tax liability relating totransactions, events and balances of the wholly owned Australian subsidiaries in this Group in the financial statements as if thatliability was its own, in addition to recognising the current tax liability arising in relation to its own transactions, events and balances.Amounts receivable or payable under the tax sharing deed are recognised separately as tax related intercompany payables orreceivables. The parent entity and the other relevant entities continue to account for their own deferred tax amounts.93-96Further InformationPAGE 51
Notes to the Financial StatementsConsolidatedParent Entity2008 2007 2008 2007$000 $000 $000 $0006. RETAINED PROFITS AND DIVIDENDSRetained profitsRetained profits at the beginning of the financial year 414,658 251,125 62,523 39,434Ordinary dividends provided for or paid (95,835) (70,252) (95,835) (70,252)Net profit/(loss) attributable to members of Computershare Limited 281,971 233,785 236,342 93,341Retained profits at the end of the financial year 600,794 414,658 203,030 62,523DividendsOrdinaryDividends paid during the financial year in respect of the previous year,AU 9 cents per share (2007 – AU 7 cents) unfranked 46,163 32,787 46,163 32,787Dividends paid in respect of the current financial year June 2008,AU 10 cents per share, unfranked (June 2007, AU 8 cents per share unfranked) 49,672 37,465 49,672 37,465The directors have determined that a final dividend of AU 11.0 cents per share franked to 30% in respect of the year ended30 June 2008 is to be paid on 19 September 2008. As the dividend was not declared until 13 August 2008 a provision has not beenrecognised as at 30 June 2008.ConsolidatedParent Entity2008 2007 2008 2007$000 $000 $000 $000Dividend franking accountFranking credits available for subsequent financial yearsbased on a tax rate of 30% 32,993 12,017 32,993 12,017The above amounts represent the balance of the franking account on a tax paid basis.Calculationof BasicEPS$000Calculationof DilutedEPS$000Calculation ofManagementBasic EPS$000Calculation ofManagementDiluted EPS$0007. EARNINGS PER SHAREYear end 30 June 2008Earnings per share (cents per share) 50.12 cents 49.89 cents 51.61 cents 51.38 centsNet profit 289,126 289,126 289,126 289,126Minority interest (profit)/loss (7,155) (7,155) (7,155) (7,155)Exclusion of significant items (note 4) - - 8,418 8,418Net profit 281,971 281,971 290,389 290,389Weighted average number of ordinary shares used as denominatorin calculating basic earnings per share 562,627,768 562,627,768Weighted average number of ordinary and potential ordinary sharesused as denominator in calculating diluted earnings per share 565,136,648 565,136,648Year end 30 June 2007Earnings per share (cents per share) 39.08 cents 39.00 cents 36.68 cents 36.61 centsNet profit 239,877 239,877 239,877 239,877Minority interest (profit)/loss (6,092) (6,092) (6,092) (6,092)Exclusion of significant items (note 4) - - (14,358) (14,358)Net profit 233,785 233,785 219,427 219,427Weighted average number of ordinary shares used as denominatorin calculating basic earnings per share 598,195,249 598,195,249Weighted average number of ordinary and potential ordinary sharesused as denominator in calculating diluted earnings per share 599,438,179 599,438,179PAGE 52 Computershare Annual Report 2008
Page 7 and 8: Management Discussion and AnalysisC
Page 9 and 10: North America Regional OverviewDesp
Page 12: 2008 HIGHLIGHTS> Acted for all majo
Page 16 and 17: As at the date of this Annual Repor
Page 18 and 19: 4. BOARD INDEPENDENCEThe Board has
Page 20 and 21: With limited exceptions, the Compan
Page 22 and 23: PricewaterhouseCoopers rotates audi
Page 24 and 25: DIVIDENDSThe following dividends of
Page 26 and 27: LIKELY DEVELOPMENTS AND FUTURE RESU
Page 28 and 29: No incentives, either short or long
Page 30 and 31: In the case of key management perso
Page 32 and 33: Key management personnel and most h
Page 34 and 35: Value of options included in key ma
Page 36 and 37: Details of the amounts paid to the
Page 38 and 39: Income Statements for the year ende
Page 40 and 41: Statements of Changes in Equity for
Page 42 and 43: Notes to the Financial Statements1.
Page 44 and 45: Impairment of assetsAll non-current
Page 46 and 47: Business combinationsThe purchase m
Page 48 and 49: HedgingThe Group documents at the i
Page 50 and 51: 2. REVENUE AND EXPENSES FROM CONTIN
Page 54 and 55: Reconciliation of weighted average
Page 56 and 57: ConsolidatedLand atcost$00016. PROP
Page 58 and 59: ConsolidatedParent Entity2008 2007
Page 60 and 61: Impairment tests for goodwillGoodwi
Page 66 and 67: Nature and purpose of reservesi. Fo
Page 68 and 69: Defined Benefit Funds1) Karvy Compu
Page 70 and 71: Name of subsidiaryPlace of incorpor
Page 72 and 73: Name of subsidiaryPlace of incorpor
Page 74 and 75: The assets and liabilities arising
Page 76 and 77: Computershare Limited Closed Group
Page 78 and 79: 33. RELATED PARTY DISCLOSURESKey ma
Page 80 and 81: (a) Interest rate riskInterest rate
Page 82 and 83: The consolidated entity minimises c
Page 84 and 85: (c) OtherThe Group is subject to re
Page 86 and 87: SECONDARY BASIS - Business Segments
Page 88 and 89: 40. ASSOCIATED ENTITIESDetails of i
Page 90 and 91: Directors’ DeclarationIn the dire
Page 92 and 93: Independent Auditor’s Report02-13
Page 94 and 95: Shareholder InformationThis section
Page 96 and 97: Office Locations02-13Overview14-36G
Page 98: HEAD OfficeComputershare LimitedABN

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