ANNUAL REPORT 2004–05 - V/Line

NOTES TO THE FINANCIAL STATEMENTSCONSOLIDATEDPARENT2005 $’000 2004 $’000 2005 $’000 2004 $’00012 MONTHS 11.5 MONTHS 12 MONTHS 11.5 MONTHSNOTE 4INCOME TAXThe prima facie tax on operating profit differs from the income taxprovided in the financial statements as follows: (195) 37,841 (195) 37,821Tax effect of permanent differences– Depreciation of rolling stock 1,681 48 - -– Unrealised gain on purchase of investment - (41,031) - (41,031)– Other 1 1 - -Total income tax expense on operating activities after permanent differences 1,487 (3,141) (195) (3,210)Restatement of opening tax balances - (9,037) - -Losses not recognised (147) 4,770 (195) 3,210Future Income Tax Benefit (FITB) not recognised (1,340) 7,408 195 -Total income tax expense attributable to operating activities - - - -Unbooked deferred tax assets and liabilitiesFITB arising to offset future assessable income has not been broughtto account at balance date, as realisation of the benefit is uncertain.Prima facie FITB - non-current - 9,388 - 3,210Provision for Deferred income tax - non-current - (1,980) - -Income tax expense effect on FITB (7,408) - (3,210)FITB - non-current - - - -Tax loss detailsFuture income tax benefit arising from current year tax losses not brought to accountat balance date as realisation of the benefit is not regarded as virtually certain. (147) 4,770 (195) 3,210This future income tax benefit will only be obtained if:• Future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised• The conditions for deductibility imposed by tax legislation continue to be compiled with• No changes in tax legislation adversely affect the entity realising the benefitNOTE 5CASH ASSETSCash balance comprises:Cash at bank 2,516 2,241 - -Cash on hand 66 65 - -The above figures are reconciled to cash at the end of the financial year asshown in the statement of cash flows as follows:2,582 2,306 - -Balances as above 2,582 2,306 - -Balances per statement of cash flows 2,582 2,306 - -V/LINE ANNUAL REPORT 2004-05|53