27. Deferred Tax
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
Deferred income tax assets and liabilities are attributable to the following items:
| Deferred tax on derivatives | ||||
|---|---|---|---|---|
| Group | Assets €’000 |
Liabilities €’000 |
Deferred tax on tax losses €’000 |
Total €’000 |
| Balance at 1 January 2013 | 292,172 | (88,277) | 133,393 | 337,288 |
| Movement in the year | (147,619) | 53,543 | (40,825) | (134,901) |
| Balance at 31 December 2013 | 144,553 | (34,734) | 92,568 | 202,387 |
| Balance at 1 January 2014 | 144,553 | (34,734) | 92,568 | 202,387 |
| Movement in the year | 4,328 | 18,217 | (92,568) | (70,023) |
| Balance at 31 December 2014 | 148,881 | (16,517) | - | 132,364 |
| Group | Note | 2014 €’000 |
2013 €’000 |
|---|---|---|---|
| Movement in deferred tax recognised in the income statement | 13 | (52,073) | (69,767) |
| Movement in deferred tax recognised in other comprehensive income | 14, 35 | (17,950) | (65,134) |
| Total movement in deferred tax in the year | (70,023) | (134,901) |
The Agency has no deferred tax assets or liabilities.
Deferred income tax assets are recognised in respect of tax losses carried forward only to the extent that realisation of the related tax benefit is probable.
Deferred tax on derivatives is recognised on the difference between the tax base of derivatives (nil) and the fair value of derivatives at the reporting date. A net deferred tax asset of €132m (2013: €110m) has been recognised in relation to derivatives. In accordance with accounting standards, deferred tax on the fair value movement on derivatives is recognised where the related fair value is accounted for, i.e. either in the income statement or in other comprehensive income. A deferred tax charge of €17.9m (2013: €65m) has been recognised in other comprehensive income relating to deferred tax on the fair value movement on derivatives where hedge accounting is applied and available for sale assets (See Note 35).
Deferred tax assets and liabilities recognised in respect of derivatives will be realised as derivatives mature or are terminated.