Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 26. DEFERRED TAXATION Deferred income tax is calculated on all temporary differences under the liability method at 17% (2018: 17%). There is a legally enforceable right to offset current tax assets against current tax liabilities and deferred income tax assets and liabilities when the deferred income taxes relate to the same fiscal authority. The following amounts are shown in the Statement of Financial Position: GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m Deferred tax assets 47.1 83.0 - - Deferred tax liabilities (1.3) (28.4) - - 45.8 54.6 - - At the end of the reporting period, the Group had unused tax losses of MUR 19.1m (2018: MUR 72.4m) available for offset against future profit on which no deferred tax has been recognised due to unpredictability of future taxable profit streams to utilise these losses. The expiry of the Group’s tax losses are MUR 0.4m in 2021, MUR 0.8m in 2022, MUR 2.3m in 2023 and MUR 15.6m in 2024. Deferred tax assets/(liabilities) GROUP Impairment allowance Post employment benefit Fair Value Gains and Others Accelerated tax depreciation Tax losses Total At 1 October 2017 69.2 (1.3) (13.3) (14.7) - 39.9 Credit/(charge) to profit or loss 17.2 7.2 (5.6) (1.7) - 17.1 Charge to other comprehensive income - (3.1) - - - (3.1) Acquisition of subsidiary - - - 0.7 - 0.7 At 30 September 2018 86.4 2.8 (18.9) (15.7) - 54.6 Impact on adoption of IFRS 9 (0.1) - - - - (0.1) (Charge)/credit to profit or loss (46.3) (2.3) - 3.8 7.7 (37.1) Credit to comprehensive income (note 12) - 0.5 - - - 0.5 Exchange difference - - - - (0.6) (0.6) Distribution of disposal goup - - 18.9 9.6 - 28.5 At 30 September 2019 40.0 1.0 - (2.3) 7.1 45.8 CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 141