Vector Annual Report 2020

― 66

15. Deferred tax continued

The group’s deferred tax position is presented in the balance sheet as follows:

2020 $M

2019 $M

(0.4)

Deferred tax asset Deferred tax liability

(0.2)

514.4 514.0

487.8 487.6

Total

Policies

Deferred tax is: — Recognised on temporary differences between the carrying amounts of assets and liabilities for f inancial reporting purposes and the amounts used for taxation purposes. — Not recognised for the initial recognition of goodwill. — Measured at tax rates that are expected to be applied to the temporary differences when they reverse. On 26 March 2020, the COVID–19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 received royal assent. The Act has reinstated Vector’s ability to deduct non–residential building depreciation for tax purposes. The group has recognised a reduction in deferred tax liability of $3.5 million as a result.

Tax legislation amendment

16. Trade and other payables

2020 $M

2019 $M

Current Trade payables

155.2

154.6

17.8 28.6

Employee benef its Interest payable Balance at 30 June

18.0 27.5

201.6

200.1

Non–current Liability for asset acquisition

– –

1.8 1.8

Balance at 30 June

Employee benef its

Vector accrues employee benef its which remain unused at balance date, and amounts expected to be paid under short–term cash bonus plans.

THE INTERPLAY OF TODAY AND TOMORROW

Made with FlippingBook Learn more on our blog