Definitions of Terms

Accounting profit

Net profit or loss for the reporting period before deducting income tax expense.

Current tax expense

The amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period.

Deductible temporary differences

Temporary differences that result in amounts that are deductible in determining taxable profit when the carrying amount of the asset or liability is recovered or settled.

Deferred tax asset

The amounts of income taxes recoverable in future periods in respect of deductible temporary differences, carryforwards of unused tax losses, and carryforwards of unused tax credits.

Deferred tax expense

The change during a reporting period in the deferred tax liabilities and deferred tax assets of an entity.

Deferred tax liability

The amounts of income taxes payable in future periods in respect of taxable temporary differences.

Gains and losses included in nonowner movements in equity but excluded from net income

Certain items which, under GAAP, are events occurring currently but which are reported directly in equity, such as changes in market values of noncurrent portfolios of marketable equity securities.

Interperiod tax allocation

The process of apportioning income tax expense among reporting periods without regard to the timing of the actual cash payments for taxes. The objective is to reflect fully the tax consequences of all economic events reported in current or prior financial statements and, in particular, to report the expected tax effects of the reversals of temporary differences existing at the reporting date.

Intraperiod tax allocation

The process of apportioning income tax expense applicable to a given period between income before extraordinary items and those items required to be shown net of tax such as extraordinary items and prior period adjustments.

Operating loss carryback or carryforward

The excess of tax deductions over taxable income. To the extent that this results in a carryforward, the tax effect thereof is included in the entity's deferred tax asset, unless not expected to be realized.

Permanent differences

Differences between accounting profit and taxable profit as a result of the treatment accorded certain transactions by the income tax regulations which differs from the accounting treatment. Permanent differences will not reverse in subsequent periods, and accordingly, do not create a need for deferred tax recognition.

Tax basis

The amount attributable (explicitly or implicitly) to an asset or liability by the taxation authorities in determining taxable profit.

Tax credits

Reductions in the tax liability as a result of certain expenditures accorded special treatment under the tax regulations.

Tax expense

The aggregate of current tax expense and deferred tax expense for a reporting period.

Tax planning strategy

A representation by management of a planned transaction or series of transactions that would affect the particular future years in which temporary differences will result in taxable or deductible amounts.

Taxable profit (loss)

The profit (loss) for a taxable period, determined in accordance with the rules established by the taxation authorities, on which income taxes are payable (recoverable).

Taxable temporary differences

Temporary differences that result in taxable amounts in determining taxable profit of future periods when the carrying amount of the asset or liability is recovered or settled.

Temporary differences

The differences between tax and financial reporting bases of assets and liabilities that will result in taxable or deductible amounts in future periods. Temporary differences include "timing differences" as defined by prior GAAP as well as certain other differences, such as those arising from business combinations. Some temporary differences cannot be associated with particular assets or liabilities, but nonetheless, do result from events that received financial statement recognition and will have tax effects in future periods.

Unrecognized tax benefits

Deferred tax benefits that have not been recognized because they are not deemed probable of being realized.