|
|
Notes to the financial statements
|
| |
|
| 24. |
Provisions for liabilities and charges |
Provisions for liabilities and charges excluding deferred taxation
| |
|
|
Property
provisions |
a
|
|
Pension
provisions |
b |
|
Other
provisions |
c |
|
Total
|
|
|
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
|
|
Balances
at 1 April 2004
|
|
|
193 |
|
|
36 |
|
|
84 |
|
|
313 |
|
|
Acquisition
of subsidiaries
|
|
|
– |
|
|
7 |
|
|
15 |
|
|
22 |
|
|
Charged
against profit for the year
|
|
|
59 |
|
|
2 |
|
|
6 |
|
|
67 |
|
|
Unwind
of discount
|
|
|
3 |
|
|
– |
|
|
– |
|
|
3 |
|
|
Utilised
in the year
|
|
|
(63 |
) |
|
(1 |
) |
|
(18 |
) |
|
(82 |
) |
|
|
|
Total
provisions at 31 March 2005
|
|
|
192 |
|
|
44 |
|
|
87 |
|
|
323 |
|
|
|
| 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 tax is provided for in full on certain timing differences. BT does not discount the provision.
| |
|
|
£m |
|
|
|
|
Balance
at 1 April 2004
|
|
|
2,191 |
|
|
Charge
against profit for the year
|
|
|
(17 |
) |
|
|
|
Total
deferred tax provisions at 31 March 2005
|
|
|
2,174 |
|
|
|
| |
|
|
2005
£m |
|
|
2004
£m |
|
|
|
|
Tax
effect of timing differences due to:
|
|
|
|
|
|
|
|
|
Excess
capital allowances
|
|
|
1,941 |
|
|
1,960 |
|
|
Pension
prepayment
|
|
|
329 |
|
|
335 |
|
|
Other
|
|
|
(96 |
) |
|
(104 |
) |
|
|
|
Total
provision for deferred taxation
|
|
|
2,174 |
|
|
2,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
