Unformatted text preview: d on current market assessments of the time value of money using discount rates specific to the country in
which the reclamation site is located and is determined as the risk-free rate of borrowing approximated by the
yield on sovereign debt for that country, with a maturity approximating the end of mine life. The periodic
unwinding of the discount is recognized in the consolidated statement of operations as a finance expense.
xvii. Income tax
The income tax expense or benefit for the period consists of two components: current and deferred. Income tax
expense is recognized in the consolidated statement of operations except to the extent it relates to a business
combination or items recognized directly in equity.
Current tax is the expected tax payable or receivable on the taxable profit or loss for the year. Current tax is
calculated using tax rates and laws that were enacted or substantively enacted at the balance sheet date in each
of the jurisdictions and includes any adjustments for taxes payable or recovery in respect of prior periods.
Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and
liabilities in the consolidated balance sheet and the corresponding tax bases used in the computation of taxable
profit. Deferred tax is calculated based on the expected manner of realization or settlement of the carrying
amount of assets and liabilities, using tax rates that are expected to apply in the year of realization or settlement
based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax liabilities are
recognized for taxable temporary differences arising on investments in subsidiaries, associates and joint
ventures except where the reversal of the temporary difference can be controlled and it is probable that the
difference will not reverse in the foreseeable future. KINROSS GOLD 2012 ANNUAL REPORT FS19...
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This document was uploaded on 03/30/2014.
- Spring '14