Income tax expense represents current and deferred tax. Tax is recognised in the Incoime Statement, except to the extent that relates to items recognised in other comprehensive income or directly in equity.
Current or deferred tax assets are not discounted.
Current tax
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been substantially enacted by the balance sheet date
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is measured using tax rates and laws that have been substantially enacted at the balance sheet date and that are expected to apply on the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is prabable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.