86 Consolidated  Notes to the  Financial  Statements 2012  $m 2011  $m Note 10 – Income tax Income tax recognised in the income statement The major components of income tax expense are: Current tax Current tax expense in respect of the current year 104.3  141.5  Adjustments in relation to current tax of prior years (11.1) (6.0) Effect of retrospective changes to Tax Consolidation Legislation –  (5.5) Deferred tax Relating to the origination and reversal of temporary differences 8.2  104.9  Effect on deferred tax balances due to changes to the Petroleum Resource Rent Tax Legislation (53.4) –  Total income tax expense 48.0  234.9  Numerical reconciliation between tax expense and pre-tax accounting profit The prima facie income tax expense on pre-tax accounting profit reconciles to the income tax expense in the financial statements as follows: Profit before tax  162.9  793.6  Income tax expense calculated at the Australian tax rate of 30% (2011: 30%) 48.9  238.1  Impairment loss on exploration and evaluation assets 1.5  –  Non-deductible expenses 11.6  7.5  Gain on disposal of businesses and subsidiaries –  1.9  Share of profits of associates and jointly controlled entities 3.4  (1.1) Loss on remeasurement to fair value of pre-existing equity interest in an acquired entity 36.2  –  Cumulative loss reclassified from equity of pre-existing equity interest in an acquired entity 10.9  –  Effect on deferred tax balances due to changes to the Petroleum Resource Rent Tax Legislation (53.4) –  Effect of retrospective changes to Tax Consolidation Legislation –  (5.5) Adjustments in relation to current tax of prior years (11.1) (6.0) 48.0  234.9  Income tax recognised directly in equity Current tax Share issue transaction costs (1.3) –  Deferred tax Share issue transaction costs (5.2) –  (6.5) –  Income tax recognised in other comprehensive income Deferred tax Cash flow hedges 51.1  21.1  Actuarial (loss)/gain on defined benefit plans (21.0) 1.1  30.1  22.2  Current tax liabilities Income tax payable 11.0  167.2  Deferred income tax recognised in the income statement Temporary differences Unbilled revenue 39.2  9.8  Allowance for doubtful debts (3.2) (0.3) Other receivables (8.0) 0.9  Jointly controlled entities (13.9) 2.1  Exploration and evaluation assets 12.2  6.4  Oil and gas assets 7.8  7.4  Property, plant and equipment 37.1  19.4  Intangible assets 7.1  –  Defined benefit superannuation plans 2.5  2.8  Payables and accruals 8.8  (0.5) Provisions 5.8  (1.1) Derivative financial instruments (92.9) 64.1  Deferred revenue 2.0  (6.0) Share issue transaction costs 1.3  1.3  Other 2.4  (1.4) 8.2  104.9