Taxation
Income tax expense represents the total of current tax and deferred tax for the reporting period.
Current Tax
Current tax is based on taxable profit for the year. Taxable profit may differ from accounting profit as reported in the statement of comprehensive income due to temporary or permanent differences arising from income or expenses that are taxable or deductible in other periods, or that are never taxable or deductible. The current tax charge is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred Tax
Deferred tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow recovery of the asset in full or in part.
Deferred tax is measured at the tax rates expected to apply when the related asset is realised or the liability settled, based on rates (and laws) that have been enacted or substantively enacted by the reporting date. Deferred tax liabilities are presented within provisions for liabilities, and deferred tax assets within debtors.
The measurement of deferred tax reflects the expected manner of recovery or settlement of the carrying amount of assets and liabilities.
Recognition in the Statement of Comprehensive Income
Current and deferred tax are recognised in profit or loss for the year ended 30th November 2024 except where they relate to items recognised in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity respectively.