Page 52 - GMT and GMT Bond Issuer Annual Report 2017 v2

NOTES TO THE
9. TAX
9.1 Tax expense
FINANCIAL
$ million
Profit before tax
Tax at 28%
Depreciation of investment property
Movement in fair value of investment property Disposal of investment property
Deductible net expenditure for investment property Joint venture net profit less dividends received Derivative financial instruments
Other
Current tax on operating earnings
Depreciation recovery income for property sold and settled Settlement of derivative financial instruments
Current tax on non-operating earnings
Current tax
Depreciation of investment property
Depreciation released for investment property contracted for sale Deferred expenses
Derivative financial instruments
Borrowing issue costs
Deferred tax
Total tax
2017 2016
220.5 247.9
(61.7) (69.4) 5.2 5.6 32.1 40.8 1.3 0.1 6.7 6.5 2.0 1.2
(1.5) (2.7) 0.7 0.2
(15.2) (17.7)
(6.3) (1.0) 3.7 0.9
(2.6) (0.1)
(17.8) (17.8)
(1.0) (1.7) 11.5 1.0 2.0 (0.4) (1.5) 4.3
0.1 (0.2)
11.1 3.0
(6.7) (14.8)
STATEMENTS
continued
For the year ended 31 March 2017
Current tax on operating earnings is a non-GAAP measure included to provide an assessment of current tax for GMT’s principal operating activities.
ACCOUNTING POLICIES
Tax expense for the year comprises current and deferred tax recognised in Pro t or Loss.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at balance date, and includes any adjustment to tax payable in respect of previous years.
Deferred tax is provided in full using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for nancial reporting purposes and their tax bases. Deferred tax is not accounted for if it arises from the initial recognition of assets or liabilities in a transaction other than a business combination, that affects neither accounting nor taxable pro t or loss, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 FINANCIAL STATEMENTS
50 NOTES TO THE FINANCIAL STATEMENTS