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ENRICHING STAKEHOLDER ASPIRATIONS ENRICHING PERFORMANCE ENRICHING THE COMMUNITY ENRICHING ACCOUNTABILITY & INTEGRITY ENRICHING RESILIENCE & SUSTAINABLE GROWTH

notes to tHe financial statements

for the year ended 31 december 2023

2. MATERiAL ACCOUNTiNG POLiCiES (CONTiNUED)
2.16 income Tax (continued)

(b) Deferred tax

deferred tax is a provision using the liability method based on the temporary differences arising between the
tax bases of assets and liabilities and their respective carrying amounts for financial reporting purposes at
the reporting date.
deferred tax liabilities are recognised for all temporary differences, except:

• where the deferred tax liabilities arise from the initial recognition of goodwill or of assets or liabilities in
transactions that are not a business combination and, at the time of the transaction, affect neither the
accounting profit nor taxable profit or loss; and
• in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that there will be no reversal of the temporary differences in the foreseeable future.

deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax
credits and unused tax losses, to the extent that it is probable that the taxable profit will be available against
which the deductible temporary differences, the carry forward of unused tax credits and unused tax losses
can be utilised except:

• where the deferred tax assets relating to the deductible temporary difference arise from the initial
recognition of an asset or liability in transactions that are not a business combination and, at the time of
the transaction, affect neither the accounting profit nor taxable profit or loss; and
• in respect of deductible temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that
the temporary differences will be reversed in the foreseeable future and taxable profit will be available
against which the temporary differences can be utilised.
deferred tax assets and liabilities are measured at the tax rates that are expected to be applied for the year
upon the realisation of the assets or settlement of the liabilities based on the tax rates and laws that were
enacted or substantively enacted at the reporting date.

deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. such
deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity. deferred tax arising from a business combination is adjusted against the
respective goodwill on acquisition.

deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off the current tax
assets against the current tax liabilities, whereby the deferred taxes relate to the same taxable entity and
taxation authority.

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