Taxation for the year comprises current tax and deferred tax. Tax is recognised in the Statement of Income and Retained Earnins, except to the extent that it relates to items recognised in other comprehensive income or directly in equity..
Current and deferred taxation assets and liabilitoes are not discounted.
Current tax
Current tax is recognised at the amout of tax payable using tax rates and laws that have been enacted or substantially enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in resoect of all timing differences that have orginated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expanses 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 enacted or substantially enacted by the year end and that are expected to apply to the reversal of the timing differences.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probale that they will be recovered against the reversal pf deferred tax liabilities in the period to which they relate.