REA Group Ltd Annual Report 2021

Notes to the Consolidated Financial Statements for the year ended 30 June 2021 REA Group Ltd | Annual Report 2021 7. Income tax (continued) (d) Summary of deferred tax 2021 $’000 2020 $’000 The balances comprise temporary differences attributable to: Employee benefits 4,972 2,738 Expected credit losses 1,201 1,851 Accruals and other 7,738 6,497 Intangible assets (53,689) (34,513) Foreign currency revaluation of associate (1,437) (1,822) Total temporary differences (41,215) (25,249) Deferred tax assets 13,911 11,086 Deferred tax liabilities (55,126) (36,335) Net deferred tax liabilities (41,215) (25,249) Movements: Opening balance (25,249) (33,810) Credited to the Consolidated Income Statement 3,980 9,228 (Debited)/Credited to equity 384 (21) Deferred taxes on acquisition of subsidiary (38,858) (646) Transferred to assets held for sale 18,528 – Closing balance (41,215) (25,249) Deferred tax assets expected to be recovered within 12 months 11,546 8,693 Deferred tax assets expected to be recovered after more than 12 months 2,365 2,393 Deferred tax liabilities expected to be payable within 12 months – – Deferred tax liabilities expected to be payable after more than 12 months (55,126) (36,335) Net deferred tax liabilities (41,215) (25,249) (e) Unrecognised temporary differences The Group has unused tax losses for which no deferred tax asset has been recognised of $238.0 million (2020: $43.3 million) on the basis that it is not probable that the Group will derive future assessable income of a nature and amount sufficient to enable the temporary difference to be realised. Of the $238.0 million, $49.0 million has no time limit expiry and $189.0 million is subject to a time limit of expiry ranging five to eight years from when the loss was incurred. 82 Financial Statements