Home' Huon Aquaculture : 2015 Annual Report Contents Notes to the financial statements
Huon Aquaculture Group Limited
22. Income taxes continued
Deferred tax assets expected to be settled within 12 months
Deferred tax assets expected to be settled after more than 12 months
Deferred tax liabilities expected to be settled within 12 months
Deferred tax liabilities expected to be settled after more than 12 months
Recognition and measurement
(Refer to note 20 for Tax Consolidation legislation)
The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income).
Current income tax expense charged to the consolidated income statement is the tax payable on taxable income. Current tax liabilities
(assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well
as unused tax losses.
Huon Aquaculture Group Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation.
As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these entities are set off in the
consolidated financial statements.
Current and deferred tax is recognised in consolidated income statement, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, excluding
a business combination, where there is no effect on accounting or taxable consolidated income statement.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the
liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carr ying amount
of the related asset or liability. With respect to non-depreciable items of proper ty, plant and equipment measured at fair value and
marine leases, the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will
be recovered entirely through sale. When an investment proper ty that is depreciable is held by the company in a business model whose
objective is to consume substantially all of the economic benefits embodied in the proper ty through use over time (rather than through
sale), the related deferred tax liability or deferred tax asset is measured on the basis that the carr ying amount of such proper ty will be
recovered entirely through use.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future
taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets
and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that
the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or
simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where:
(a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities, where it is intended that net settlement or simultaneous
realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax
assets or liabilities are expected to be recovered or settled.
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