Taxation The group is required to estimate the corporate tax in each of the

Taxation the group is required to estimate the

This preview shows page 95 - 98 out of 256 pages.

Taxation The group is required to estimate the corporate tax in each of the jurisdictions in which it operates. This requires an estimation of the current tax liability together with an assessment of the temporary differences which arise as a consequence of different accounting and tax treatments. These temporary differences result in deferred tax assets or liabilities which are included within the balance sheet. Deferred tax assets are not recognised where it is more likely than not that the asset will not be realised in the future. This evaluation requires judgements to be made including the forecast of future taxable income. Tax benefits are not recognised unless it is probable that the tax positions are sustainable. Once considered to be probable, management reviews each material tax benefit to assess whether a provision should be taken against full recognition of the benefit on the basis of potential settlement through negotiation and/or litigation. The group operates in many countries in the world and is subject to many tax jurisdictions and rules. As a consequence the group is subject to tax audits, which by their nature are often complex and 92
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Business review (continued) can require several years to conclude. Management judgement is required to determine the total provision for income tax. Amounts accrued are based on management’s interpretation of country specific tax law and the likelihood of settlement. However the actual tax liabilities could differ from the provision and in such event the group would be required to make an adjustment in a subsequent period which could have a material impact on the group’s profit and loss and/or cash position. New accounting standards A number of IFRS standards and interpretations have been issued by the IASB or IFRIC. Those that are of relevance to the group are discussed in note 1 to the consolidated financial statements. 93
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Directors and senior management Age Nationality Position (committees) Directors Dr Franz B Humer . . . . . . . . . . 64 Swiss/Austrian Chairman, non-executive director(3)* Paul S Walsh . . . . . . . . . . . . . . 55 British Chief executive, executive director(2)* Nicholas C Rose . . . . . . . . . . . . 52 British Chief financial officer, executive director(2) Lord Hollick of Notting Hill . . . 65 British Senior non-executive director(1)(3)(4)* Peggy B Bruzelius . . . . . . . . . . . 60 Swedish Non-executive director(1)(3)(4) Laurence M Danon . . . . . . . . . 54 French Non-executive director(1)(3)(4) Lord Mervyn Davies of Abersoch . . . . . . . . . . . . . . . . . 57 British Non-executive director(1)(3)(4) Betsy D Holden . . . . . . . . . . . . 54 American Non-executive director(1)(3)(4) Philip G Scott . . . . . . . . . . . . . 56 British Non-executive director(1)*(3)(4) H Todd Stitzer . . . . . . . . . . . . . 58 American Non-executive director(1)(3)(4) Paul A Walker . . . . . . . . . . . . . 53 British Non-executive director(1)(3)(4) Senior management Ronald Anderson . . . . . . . . . . . 54 British Chief customer officer(2) Nicholas B Blazquez . . . . . . . . . 49 British Managing director, Diageo Africa(2) Andrew Fennell . . . . . . . . . . . . 43 British Chief marketing officer(2) Stuart R Fletcher . . . . . . . . . . . 53 British President, Diageo International(2) Gilbert Ghostine . . . . . . . . . . . . 50 Lebanese President, Diageo Asia Pacific(2) David Gosnell . . . . . . . . . . . . . 53 British
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