Page 64 - Bauxite Resources Annual Report 2014

62 | Bauxite Resources Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements cont.
Annual Report 2014 Bauxite Resources 62
Consolidated Group
2014 2013
$ $
Loss from continuing operations before income tax expense (4,554,592) (5,241,175)
Prima facie tax benefit on loss from ordinary activities before income tax at 30% (2013:
30%) (1,366,378) (1,572,353)
Add tax effect of:
- Non-allowable items 45,424 1,275
- Prior year tax adjustment 21,560 -
- Revenue losses not recognised 1,471,724 1,820,248
172,330 249,170
Less tax effect of:
- Non-assessable items 9,702 200,980
- Deferred tax balances not recognised 162,628 31,763
- Prior year adjustment - 16,427
Income tax expense reported in the statement of comprehensive income - -
(c) Deferred tax recognised:
Deferred tax liabilities:
Accrued interest (61,563) (94,350)
Other (1,832) (1,911)
Deferred tax assets:
Carry forward revenue losses 63,395 96,261
Net deferred tax - -
(d) Deferred tax not recognised:
Deferred Tax Assets at 30%:
Carry forward losses 12,245,874 10,791,876
Capital raising costs 236 179,351
Property, plant & equipment 840,228 840,491
Exploration and development 158,893 158,892
Provisions and accruals 38,029 30,243
Other 60,615 50,807
13,343,875 12,051,660
The tax benefits of the above Deferred Tax Assets will only be obtained if:
(a) the company derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised;
(b) the company continues to comply with the conditions for deductibility imposed by law; and
(c) no changes in income tax legislation adversely affect the company in utilising the benefits.
Tax consolidation
(i) Members of the tax consolidated group
Bauxite Resources Limited and its wholly owned Australian resident subsidiaries have formed a tax consolidated group with
effect from 10 June 2008. Bauxite Resources Limited is the head entity of the tax consolidated group.
(ii) Tax effect accounting by members of the tax consolidated group
Measurement method adopted under UIG 1052 Tax Consolidated Accounting
The group has applied the Stand-Alone Taxpayer approach in determining the appropriate amount of current and deferred taxes
recognised by members of the tax consolidated group. Each entity in the group recognises its own current and deferred tax
assets and liabilities, except for any deferred tax assets resulting from unused tax losses and tax credits and any current tax
liability. Deferred tax assets resulting from unused tax losses and tax credits and the current tax liability are assumed and
recognised by the parent entity. The group has not entered into any tax sharing or funding agreements.