(AE) INCOME TAX 70  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011 Metals X Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation  legislation as of 1 July 2004. The head entity, Metals X Limited and the controlled entities in the tax consolidated  group continue to account for their own current and deferred tax amounts. The Consolidated Entity has applied the  group allocation approach in determining the appropriate amount of current taxes and deferred taxes to allocate  to members of the tax consolidated group. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current  tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity  and the same taxation authority. Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of  comprehensive income. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year  when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or  substantively enacted at the reporting date. Unrecognised income taxes are reassessed at each reporting date and are recognised to the extent that it has  become probable that future taxable profit will allow the deferred tax asset to be recovered. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent  that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income  tax asset to be utilised. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax  assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which  the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be  utilised: The Consolidated Entity entered into a tax consolidated group as of 1 July 2004.  Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of  assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences: Contributions made by the Consolidated Entity to employee superannuation funds, which are defined  contribution plans, are charged as an expense when incurred. (iii) Superannuation •  when the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction  that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor  taxable profit or loss; and •  when the taxable temporary differences associated with investments in subsidiaries, associates and interests  in joint ventures, except where the timing of the reversal of the temporary differences can be controlled and it  is probable that the temporary differences will not reverse in the foreseeable future. •  when the deferred income tax asset relating to the deductible temporary difference arises from the initial  recognition of an asset or liability in a transaction that is not a business combination and, at the time of the  transaction, affects neither the accounting profit nor taxable profit or loss; and •  when the deductible temporary differences associated with investments in subsidiaries, associates and  interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the  temporary differences will reverse in the foreseeable future and taxable profit will be available against which  the temporary differences can be utilised. Tax consolidation legislation