|
27. Provisions
for liabilities
and charges
Provisions for liabilities and charges
excluding deferred taxation
| |
Property |
|
Pension |
|
Other |
|
|
|
| provisions |
a |
provisions |
b |
provisions |
c |
Total |
| £m |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
| Balances at 1 April 2003 |
258 |
|
33 |
|
68 |
|
359 |
|
| Charged against profit for the year |
– |
|
5 |
|
16 |
|
21 |
|
| Unwind of discount |
5 |
|
– |
|
– |
|
5 |
|
| Utilised in the year |
(70 |
) |
(2 |
) |
– |
|
(72 |
) |
|
|
|
|
|
|
|
|
|
| Total provisions at 31 March 2004 |
193 |
|
36 |
|
84 |
|
313 |
|
|
|
|
|
|
|
|
|
|
| a |
Property provisions
comprise amounts provided for obligations to complete nearly finished
new properties
and remedial work to be undertaken on properties and the onerous lease
provision on rationalisation of the group’s London office portfolio.
The provisions will be utilised over the remaining lease periods. |
| b |
Provision for unfunded pension obligations which will be utilised
over the remaining lives of the beneficiaries. |
| c |
Other provisions include
amounts provided for legal or constructive obligations arising from insurance
claims and litigation which will be utilised as the obligations are settled. |
Deferred taxation
Deferred tax is provided for in full
on certain timing differences, BT does not discount the provision.
| |
£m |
|
|
|
|
| Balance at 1 April 2003 |
2,017 |
|
| Charge against profit for the year |
174 |
|
|
|
|
| Total deferred tax provisions at 31 March 2004 |
2,191 |
|
|
|
|
| |
2004 |
|
2003 |
|
| £m |
|
£m |
|
|
|
|
|
| Tax effect of timing differences due to: |
|
|
|
|
| Excess capital allowances |
1,960 |
|
2,035 |
|
| Pension prepayment |
335 |
|
167 |
|
| Other |
(104 |
) |
(185 |
) |
|
|
|
|
|
| Total provision for deferred taxation |
2,191 |
|
2,017 |
|
|
|
|
|
|
|
