RWS AR 23 Final Single pages - Flipbook - Page 127
8. FINANCE INCOME AND COSTS
2023
£m
Finance income
Return on short term deposits
2022
£m
0.6
0.2
0.6
0.2
Finance costs
Bank interest payable
Lease interest
Amortisation of borrowing costs
(2.6)
(1.1)
(0.6)
(1.4)
(1.3)
(0.3)
Finance costs excluding exceptional amortisation
Amortisation of borrowing costs - Exceptional (Note 6)
(4.3)
(0.3)
(3.0)
(0.3)
(4.6)
(3.3)
(4.0)
(3.1)
Net 昀椀nance cost
9. TAXATION
Accounting policy
The charge for current taxation is based on the results for the year as adjusted for items which are non-assessable
or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet
date. Current tax assets and liabilities are o昀昀set when the relevant tax authority permits net settlement and the group
intends to settle on a net basis.
Deferred tax is recognised in respect of temporary di昀昀erences between the carrying amounts of assets and liabilities
for 昀椀nancial reporting purposes and the amounts used for taxation purposes where this di昀昀ers.
Deferred tax is not recognised for temporary di昀昀erences related to investments in subsidiaries and associates where
the Group is able to control the timing of the reversal of the temporary di昀昀erence and it is probable that this will not
reverse in the foreseeable future; on the initial recognition of non-deductible goodwill; and on the initial recognition of
an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, does not
a昀昀ect the accounting or taxable pro昀椀t.
Deferred tax is measured on an undiscounted basis, and at the tax rates that have been enacted or substantively
enacted by the reporting date that are expected to apply in the periods in which the asset or liability is settled
Deferred tax assets are recognised to the extent that it is probable that future taxable pro昀椀ts will be available against
which they can be used and are reviewed at each reporting date.
Deferred tax assets and liabilities are o昀昀set when they relate to income taxes levied by the same taxation authority,
when the Group intends to settle its current tax assets and liabilities on a net basis and that authority permits the
Group to make a single net payment.
Current and deferred tax is recognised in the income statement except when it relates to items credited or charged
directly to other comprehensive income or equity, in which case the current or deferred tax is also recognised within
other comprehensive income or equity respectively (for example share-based payments).
Uncertain tax positions
The Group operates in numerous tax jurisdictions around the world. At any given time, the Group is involved in
disputes and tax audits and will also have a number of tax returns potentially subject to audit. These tax audits may
give rise to signi昀椀cant tax issues that take several years to resolve. In estimating the probability and amount of any
tax charge, Management takes into account the views of internal and external advisers and updates the amount
of tax provision whenever necessary. The ultimate tax liability may di昀昀er from the amount provided depending on
interpretations of tax law, settlement negotiations or changes in legislation. As referenced in Note 2, the Group
considers all tax positions separately and uses either the most likely or expected value method of calculation on a case
by case basis.
NOTES TO THE CONSOLIDATED STATEMENTS
RWS Holdings plc — Annual Report 2023
127
