Taxation for the year comprised current and deferred tax. Tax was recognised in the Statement of Income andRetained Earnings, except to the extent that it related to items recognised in Other Comprehensive Income or directly in Equity.
Current tax was recognised at the amount of tax payable using the tax rates and laws that had been enacted or substantively enacted by the statement of financial position date.
Deferred tax was recognised in respect of all timing differences that had originated but not reversed at the statement of financial position date.
Timing differences arose from the inclusion of income and expenses in tax assessments in periods different from those in which they were recognised in financial statements. Deferred tax was measured using tax rates and laws that had been enacted or substantively enacted by the year end and that were expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets were recognised only to the extent that it was probable that they would be recovered against the reversal of deferred tax liabilities or other future taxable profits.