Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Explanatory Notes 30 SEPTEMBER 2020 26. DEFERRED TAXATION Deferred tax assets/(liabilities) GROUP Deferred income tax is calculated on all temporary differences under the liability method at 17% (2019: 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: At the end of the reporting period, the Group had unused tax losses of MUR23.7m (2019: MUR19.1m) 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 MUR0.4m in 2021, MUR0.8m in 2022, MUR2.3m in 2023 and MUR15.6m in 2024. GROUP Sep-20 MUR m Sep-19 MUR m Deferred tax assets 188.8 47.1 Deferred tax liabilities (16.4) (1.3) 172.4 45.8 Impair- ment allowance Post employment benefit Right of use Accelerated tax depreciation Tax losses Total MUR m MUR m MUR m MUR m MUR m MUR m At 1 October 2018 86.4 2.8 - (15.7) - 73.5 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 other comprehensive income (note 12) - 0.5 - - - 0.5 Exchange difference - - - - (0.6) (0.6) Distribution of disposal group - - - 9.6 - 9.6 At 30 September 2019 40.0 1.0 - (2.3) 7.1 45.8 Credit/(Charge) to profit or loss 46.4 1.1 3.0 (5.2) - 45.3 Effect of no partial exemption 78.9 4.3 - (8.9) - 74.3 Credit to comprehensive income (note 12) - 7.0 - - - 7.0 At 30 September 2020 165.3 13.4 3.0 (16.4) 7.1 172.4 Deferred tax asset 165.3 13.4 3.0 - 7.1 188.8 Deferred tax liability - - - (16.4) - (16.4) 165.3 13.4 3.0 (16.4) 7.1 172.4 139