Notes to the Financial Statements
for the year ended 31 December 2004
24 Other Assets
| Rm | |||
Notes |
At 31 December 2004 |
At 31 December 2003 |
|
| Insurance and other assets | |||
| Deferred tax asset | 24(a) |
3,352 |
3,020 |
| Other | 1,258 |
943 |
|
4,610 |
3,963 |
||
| Banking | |||
| Customer indebtedness for acceptances | 1,508 |
836 |
|
| Deferred tax asset | 24(c) |
1,182 |
3,056 |
| Derivative contracts - positive value | 46(e) |
18,893 |
20,531 |
| Other | 5,055 |
4,179 |
|
26,638 |
28,602 |
Other assets include £1,742 million (R18,893 million) (2003: £1,720 million (R20,531 million)) that reflects the positive value of on-balance sheet trading derivative instruments. The negative value of these contracts is included within other liabilities.
| Rm | ||
| 24(a) Deferred tax asset - insurance and other assets | At 31 December 2004 |
At 31 December 2003 |
| At beginning of year | 3,020 |
4,462 |
| Net credit for the year | 814 |
49 |
| Foreign exchange and other movements | (482) |
(1,491) |
| At end of year | 3,352 |
3,020 |
| The deferred tax asset arises as a result of: | ||
| Insurance funds | 1,692 |
824 |
| Unrelieved tax losses | 336 |
275 |
| Accelerated capital allowances | 293 |
561 |
| Short term timing differences | 1,031 |
1,360 |
3,352 |
3,020 |
The recovery of £309 million (R3,352 million) (2003: £253 million (R3,020 million)) of the total deferred tax asset above is dependent upon future taxable profits.
| Rm | ||
| 24(b) Deferred tax asset, unrecognised - insurance and other assets | At 31 December 2004 |
At 31 December 2003 |
| Unrelieved tax losses | 716 |
848 |
| Accelerated capital allowances | 358 |
525 |
| Insurance funds | 76 |
36 |
| Short term timing differences | 358 |
179 |
1,508 |
1,588 |
The unrecognised deferred tax assets will be recognised when appropriate taxable profits are reasonably expected to arise in the relevant jurisdictions.
| Rm | ||
| 24(c) Deferred tax asset - banking | Year to 31 December 2004 |
Year to 31 December 2003 |
| At beginning of year | 3,056 |
691 |
| Net (charge)/credit for the year | (342) |
86 |
| Foreign exchange and other movements | (1,532) |
2,279 |
| At end of year | 1,182 |
3,056 |
| The deferred tax asset arises as a result of: | ||
| Unrelieved tax losses | 2,549 |
2,251 |
| Short term timing differences | (1,584) |
80 |
| Other timing differences | 217 |
725 |
1,182 |
3,056 |
Other movements includes an adjustment of £169 million (R1,989 million) based on reclassification of deferred tax on structured finance transactions. There is a matching adjustment to the deferred tax liability accordingly.
There were unrecognised banking deferred tax assets at 31 December 2004 of £18 million (R198 million) relating to unrelieved tax losses (2003: nil).
