Source: finance

6. Income tax continued

<table>
  <tr>
    <th></th>
    <th>2013 $'000</th>
    <th>2012 $'000</th>
  </tr>
  <tr>
    <td>c) Tax recognised in other comprehensive income<br>Available-for-sale investment revaluation reserve<br>Foreign exchange losses recognised directly in foreign currency translation reserves</td>
    <td>(39)<br>566</td>
    <td>(300)<br>103</td>
  </tr>
  <tr>
    <td>Total tax recognised in other comprehensive income</td>
    <td>527</td>
    <td>(197)</td>
  </tr>
  <tr>
    <td>d) Deferred tax liabilities offset</td>
    <td colspan="2">Deferred tax liabilities amounting to $853,000 (2012: $774,000) have been offset against deferred tax asset.</td>
  </tr>
  <tr>
    <td>e) Unrecognised deferred tax assets<br>Tax losses – Australian entities<br>Tax losses – other entities<br>Temporary difference</td>
    <td>211,548<br>9,237<br>130,113</td>
    <td>5,627<br>2,185<br>–</td>
  </tr>
  <tr>
    <td>Subtotal</td>
    <td>350,898</td>
    <td>7,812</td>
  </tr>
  <tr>
    <td>Unrecognised deferred tax assets</td>
    <td>104,345</td>
    <td>2,344</td>
  </tr>
  <tr>
    <td>f) Tax consolidation group</td>
    <td colspan="2">Kingsgate Consolidated Limited and its wholly-owned Australian subsidiary have implemented the tax consolidation legislation as of 1 July 2003. The accounting policy in relation to this legislation is set out in Note 2d.<br><br>On adoption of the tax consolidation legislation, the entities in the tax-consolidation group entered into a tax sharing agreement which, in the opinion of the Directors, limits the joint and several liabilities of the wholly-owned entities in the case of default by the head entity, Kingsgate Consolidated Limited.<br><br>The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate Kingsgate for any current tax receivable assets and are compensated for any current tax receivable and deferred assets relating to the unused tax losses or unused tax credits that are transferred to Kingsgate under the tax legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities’ financial statements.<br><br>The amount receivable / payable under the tax funding agreement are due upon receipt of the final accounts from each subsidiary and is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments.</td>
  </tr>
  <tr>
    <th colspan="3">g) Recognised deferred tax assets and liabilities</th>
  </tr>
  <tr>
    <th></th>
    <th>Assets<br>2013 $'000<br>2012 $'000</th>
    <th>Liabilities<br>2013 $'000<br>2012 $'000</th>
    <th>Net<br>2013 $'000<br>2012 $'000</th>
  </tr>
  <tr>
    <td>Deferred tax assets / liabilities:</td>
    <td colspan="3"></td>
  </tr>
  <tr>
    <td>Derivatives</td>
    <td>384</td>
    <td>808</td>
    <td>–</td>
    <td>384</td>
    <td>808</td>
  </tr>
  <tr>
    <td>Employee benefits</td>
    <td>1,789</td>
    <td>1,571</td>
    <td>–</td>
    <td>1,789</td>
    <td>1,571</td>
  </tr>
  <tr>
    <td>Provision for restoration and rehabilitation</td>
    <td>5,167</td>
    <td>3,390</td>
    <td>–</td>
    <td>5,167</td>
    <td>3,390</td>
  </tr>
  <tr>
    <td>Provision for obsolescence</td>
    <td>309</td>
    <td>278</td>
    <td>–</td>
    <td>309</td>
    <td>278</td>
  </tr>
  <tr>
    <td>Unrealised exchange (gains) / losses</td>
    <td>1,265</td>
    <td>2,990</td>
    <td>(2,020)</td>
    <td>(755)</td>
    <td>2,790</td>
  </tr>
  <tr>
    <td>Other items</td>
    <td>1,147</td>
    <td>1,096</td>
    <td>(467)</td>
    <td>680</td>
    <td>1,096</td>
  </tr>
  <tr>
    <td>Tax losses</td>
    <td>–</td>
    <td>36,334</td>
    <td>–</td>
    <td>–</td>
    <td>36,334</td>
  </tr>
  <tr>
    <td>Available-for-sale financial assets</td>
    <td>334</td>
    <td>78</td>
    <td>–</td>
    <td>334</td>
    <td>39</td>
  </tr>
  <tr>
    <td>Mine properties and exploration</td>
    <td>3,706</td>
    <td>–</td>
    <td>(11,447)</td>
    <td>(7,741)</td>
    <td>(65,205)</td>
  </tr>
  <tr>
    <td>Total deferred tax assets / (liabilities)</td>
    <td>14,101</td>
    <td>46,545</td>
    <td>(13,934)</td>
    <td>(65,444)</td>
    <td>167</td>
    <td>(18,899)</td>
  </tr>
  <tr>
    <td>Set off tax</td>
    <td>(3,706)</td>
    <td>(36,334)</td>
    <td>3,706</td>
    <td>36,334</td>
    <td>–</td>
    <td>–</td>
  </tr>
  <tr>
    <td>Net deferred tax assets (liabilities)</td>
    <td>10,395</td>
    <td>10,211</td>
    <td>(10,228)</td>
    <td>(29,110)</td>
    <td>167</td>
    <td>(18,899)</td>
  </tr>
</table>