Note 4: Tax 2023 US$m 2022 US$m a. Income tax expense recognised in the statement of comprehensive income Current tax expense Current year 648 354 Deferred tax (recovery)/expense Origination and reversal of temporary differences (209) 223 Total deferred tax (recovery)/expense (209) 223 Over provided in prior years (20) (52) Income tax expense 419 525 b. Reconciliation between tax expense and pre-tax net profit Accounting profit before income tax 2,663 2,780 Income tax calculated at 30% (2022: 30%) 799 834 Effects of different rates of tax on overseas income (282) (247) Research and development incentives (74) (63) Over provision in prior year (20) (52) Revaluation of deferred tax balances 23 18 Other (non-assessable income)/non-deductible expenses (27) 35 Income tax expense 419 525 c. Income tax recognised directly in equity Share-based payments 1 – Income tax benefit recognised in equity 1 – d. Deferred tax assets and liabilities Deferred tax asset 902 518 Deferred tax liability (1,464) (670) Net deferred tax liability (562) (152) The composition of the Group’s net deferred tax assets and liabilities are attributable to: Inventories 326 135 Property, plant and equipment (405) (352) Intangible assets (1,006) (215) Trade and other payables 124 160 Recognised carry-forward tax losses 213 3 Retirement liabilities, net 41 23 Receivables and contract assets (3) (98) Interest-bearing liabilities 64 50 Provisions and other liabilities 61 88 Other 23 54 Net deferred tax liability (562) (152) e. Movement in net deferred tax liability during the year Opening balance (152) 70 Net deferred tax liabilities recognised on acquisition of CSL Vifor (Note 2) (658) – Credit/(charged) to profit before tax 237 (212) Charged to other comprehensive income (OCI) (17) – Credit/(charged) to equity 28 (10) Closing balance (562) (152) CSL Limited Annual Report 2022/23 127
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