McConnell Dowell 2018 Annual Review

28 All figures are in A$ 000’s Note 2018 2017 14. Deferred Tax Asset Deferred tax asset 61,872 61,586 Deferred tax liability (8,906) (8,580) NET DEFERRED TAX ASSET 52,966 53,006 Net deferred tax asset represented by; At beginning of year 53,006 74,729 Foreign exchange impact on opening balance 211 - Write down of deferred tax asset - (33,250) Transfer (to) / from statement of profit or loss (251) 11,527 CLOSING BALANCE 52,966 53,006 Balance at end of year comprises: Doubtful debts - - Provisions / accruals 35,778 47,234 Fixed assets 1,732 3,490 Unrealised foreign exchange loss - - Withholding tax on future dividends (6,346) (5,963) Tax losses available for future utilisation 21,408 7,655 Joint operation temporary differences - 905 Other 394 (315) CLOSING BALANCE 52,966 53,006 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 $557.9 million (2017: $511.6 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 considered probable of recovery. Unbooked tax losses at 30 June 2018 is excess over the amount of tax losses that were deemed recoverable. 15. Trade and Other Payables Trade payables* 82,462 92,029 Project accruals 97,270 117,396 Progress billings in advance 8(c) 108,350 84,913 Other payables and accruals 19,849 11,748 Payables to other related parties 19 2,247 2,225 Payables to associates - Dutco McConnell Dowell (ME) LLC 132 93 TOTAL TRADE AND OTHER PAYABLES 310,310 308,404 * Trade payables are non-interest bearing and are normally settled on 30-day terms. Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value. There is no collateral provided as security. Information regarding foreign exchange, interest rate and liquidity risk exposure is set out in Note 22. 15(a) - Other financial liabilities are foreign exchange forward contracts, refer to Note 22 for further information. Consolidated 13. Asset Held for Sale Asset held for sale is represented by a single vessel, being a self-elevating barge with gross tonnage of 1,197. The barge is surplus to the operational requirements of the Group and accordingly has been advertised for sale. The Group is seeking offers from interested parties via specialist brokers of marine vessels. The asset is expected to be sold within the next twelve months. Notes to the Annual Financial Statements (continued) For the year ended 30 June 2018