Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 327

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 327
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713 |
| –Lease liabilities                                                                                  |      |      -70 |      -50 |      -49 |
| Fair value movements:                                                                               |      |          |          |          |
| –Bonds designated as hedged items in fair value hedges(a)                                           |      |       -9 |     -190 |      526 |
| –Derivatives designated as hedging instruments in fair value hedges(a)                              |      |       18 |      203 |     -515 |
| Amounts capitalised(b)                                                                              |   13 |      424 |      279 |      416 |
| Total finance costs                                                                                 |      |     -763 |     -967 |     -335 |

(a) The main sources of ineffectiveness of the fair value hedges include changes in the timing of the cash flows of the hedging instrument compared to the underlying hedged item, and changes

in the credit risk of parties to the hedging relationships.

(b) We capitalise interest based on the Group or relevant subsidiary’s cost of borrowing (refer to note 13) or at the rate of project-specific debt (where applicable).

| Annual Report on Form 20-F 2024 | 180 | riotinto.com |

Financial statements | Notes to the consolidated financial statements

10 Taxation Recognition and measurement The taxation charge contains both current and deferred tax. Current tax is the tax expected to be payable on the taxable income for the year calculated using rates applicable during the year. It includes adjustments for tax expected to be payable or recoverable in respect of previous periods. Where the amount of tax payable or recoverable is uncertain, we establish provisions based on either: the Group’s judgement of the most likely amount of the liability or recovery; or, when there is a wide range of possible outcomes, a probability weighted average approach. Deferred tax is calculated in accordance with IAS 12, at the rate expected to apply when the asset is realised or liability settled, according to rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is generally recognised in respect of differences between the carrying values of assets and liabilities in the financial statements and their tax bases. Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Deferred tax is not recognised on the initial recognition of goodwill or of assets and liabilities, other than in a business combination, that at the time of the transaction impact neither accounting nor taxable profit, except