McConnell Dowell 2019 Annual Review

74 McConnell Dowell Group Notes to the annual financial statements (continued) for the year ended 30 June 2019 All figures are in A$ 000’s 2019 2018 14. Deferred tax asset Deferred tax asset 60,734 61,872 Deferred tax liability (7,426) (8,906) Net deferred tax asset 53,308 52,966 Net deferred tax asset represented by; At beginning of year 52,966 53,006 Foreign exchange impact on opening balance 263 211 Transfer (to) / from statement of profit or loss 79 (251) Closing balance 53,308 52,966 Balance at end of year comprises: Doubtful debts - - Provisions / accruals 42,213 35,778 Fixed assets 4,471 1,732 Withholding tax on future dividends (6,311) (6,346) Tax losses available for future utilisation 10,683 21,408 Joint operation temporary differences - - Other 2,252 394 Closing balance 53,308 52,966 The Group offsets its deferred tax liabilities against deferred tax assets relating to temporary differences in the same taxation jurisdictions and periods. All movements in deferred tax balances have been charged to deferred tax expense as recognised in the statement of profit or loss. The gross value of unbooked tax losses available for future utilisation within the Group are $434.5 million (2018: $557.9 million). Deferred tax assets have not been recognised in respect of these losses as they may not be used to offset taxable profits elsewhere in the Group and are not presently considered probable of recovery. Unbooked tax losses at 30 June 2019 is excess over the amount of tax losses that were deemed recoverable. Consolidated Financial Statements 2019