Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Notes to the financial statements  for the financial year ended 31 March 2014  continued  Consolidated 2014  $m  Consolidated 2013  $m  Company  2014  $m  Company  2013  $m  Note 18  Deferred tax assets/(liabilities)  The balance comprises temporary differences attributable to:  Other assets and liabilities  622  546  16  (11)  Tax losses  491  653  77  181  Investments in subsidiaries, securities available for sale, associates  and joint ventures  153  309  –  –  Fixed assets 108  103  –  –  Set-off of deferred tax liabilities  (608)  (341)  50  127  Total deferred tax assets  766  1,270  143  297  Intangible assets  (137)  (122)  –  –  Other assets and liabilities  (193)  (197)  –  –  Leasing and financial instruments  (829)  (564)  50  127  Set-off of deferred tax assets 608  341  (50)  (127)  Total deferred tax liabilities  (551)  (542)  –  –  Net deferred tax assets  215  728  143  297  The majority of the above amounts are expected to be recovered after 12 months of the balance date by the Consolidated Entity  and the Company.  Potential tax assets of approximately $33 million (2013: $63 million) attributable to tax losses carried forward by subsidiaries have  not been brought to account in the subsidiaries and in the Consolidated Entity as the Directors do not believe the realisation of the  tax assets is probable.  The principles of the balance sheet method of tax effect accounting have been adopted whereby the income tax expense for the  financial year is the tax payable on the current year's taxable income adjusted for changes in deferred tax assets and liabilities  attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial  statements and unused tax losses. Deductible temporary differences and tax losses give rise to deferred tax assets. Deferred tax  assets are not recognised unless the benefit is probable of realisation. The deferred tax assets have been applied against deferred tax liabilities to the extent that they are expected to be realised in the  same period within the same tax paying entity.  136 