Income tax expense represents the sum of the tax currently payable and deferred tax.
Tax is recognised in the Profit & Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Deferred taxation is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes.
Tax deferred or accelerated is accounted for in respect of all material timing differences.
Current and deferred tax are not discountd. Both current and deferred tax are recognised at the amount of tax payable using the tax rates and laws that have been enacted or subsequently enacted by the balance sheet date.