Notes to the Financial Statements
82
www.kingsgate.com.au
6. Income tax continued
2013 
$’000
2012 
$’000
c) Tax recognised in other comprehensive income
Available-for-sale investment revaluation reserve (39) (300)
Foreign exchange losses recognised directly in foreign currency translation reserves 566 103
Total tax recognised in other comprehensive income 527 (197)
d) Deferred tax liabilities offset
Deferred tax liabilities amounting to $853,000 (2012: $774,000) have been offset against deferred tax asset.
e) Unrecognised deferred tax assets
Tax losses – Australian entities 211,548 5,627
Tax losses – other entities 9,237 2,185
Temporary difference 130,113 –
Subtotal 350,898 7,812
Unrecognised deferred tax assets 104,345 2,344
f) Tax consolidation group
Kingsgate Consolidated Limited and its wholly-
owned Australian subsidiary have implemented 
the tax consolidation legislation as of 1 July 
2003. The accounting policy in relation to this 
legislation is set out in Note 2d.
On adoption of the tax consolidation legislation, 
the entities in the tax-consolidation group 
entered into a tax sharing agreement which, in 
the opinion of the Directors, limits the joint and 
several liabilities of the wholly-owned entities in 
the case of default by the head entity, Kingsgate 
Consolidated Limited.
The entities have also entered into a tax funding 
agreement under which the wholly-owned 
entities fully compensate Kingsgate for any 
current tax payable assumed and are compen-
sated for any current tax receivable and deferred 
assets relating to the unused tax losses or 
unused tax credits that are transferred to 
Kingsgate under the tax legislation. The funding 
amounts are determined by reference to the 
amounts recognised in the wholly-owned enti-
ties’ financial statements. 
The amount receivable / payable under the tax 
funding agreement are due upon receipt of the 
funding advice from the head entity, which is 
issued as soon as practicable after the end of 
each financial year. The head entity may also 
require payment of interim funding amounts to 
assist with its obligations to pay tax instalments. 
Assets Liabilities Net
g)  Recognised deferred tax assets  
and liabilities
2013 
$’000
2012 
$’000
2013 
$’000
2012 
$’000
2013 
$’000
2012 
$’000
Deferred tax assets / liabilities:
Derivatives  384 808 – –  384 808
Employee benefits  1,789 1,571 – –  1,789 1,571
Provision for restoration and rehabilitation 5,167 3,390 – – 5,167 3,390
Provision for obsolescence  309 278 – –  309 278
Unrealised exchange (gains) / losses  1,265 2,990 (2,020) (200) (755) 2,790
Other items  1,147 1,096 (467) –  680 1,096
Tax losses  – 36,334 – –  – 36,334
Available-for-sale financial assets  334 78 – (39)  334 39
Mine properties and exploration  3,706 – (11,447) (65,205)  (7,741) (65,205)
Total deferred tax assets / (liabilities)  14,101 46,545 (13,934) (65,444)  167 (18,899)
Set off tax  (3,706) (36,334)  3,706 36,334  – –
Net deferred tax assets (liabilities)  10,395 10,211 (10,228)  (29,110)  167 (18,899)