Notes to the Consolidated Financial Statements  Page 45 of 80  2010  $’000  2009  $’000  13. DEFERRED TAX ASSETS & LIABILITIES CONTINUED Liabilities  Unrealised foreign exchange gains  741 1,026 Work in progress  7,544 7,122 Prepayments 440 403 Property, plant and equipment  227 2 Cash to accrual adjustment  - 1,447 Intangible items  300 823 Retentions 68 - Goodwill on acquisition  1,473 - Other - 117 Total deferred tax liabilities  10,793 10,940 Set-off of deferred tax assets  (10,351) (9,882) Net deferred tax liabilities  442 1,058 NET DEFERRED TAX ASSETS (LIABILITIES)  3,109 1,052 30 June 2010  1 July 2009  $’000  Recognised  in profit or  loss $’000  Recognised  directly in  equity  $’000  Acquired in  business  combination  $’000  30 June  2010  $’000  Movement in temporary differences  during the year:  Accruals 1,719 616 - - 2,335 Provisions 8,176 877 - 979 10,032 Capitalised Software - 340 - - 340 Carried forward tax losses  932  (450)  -  -  482  Lease Timing  326  (64)  -  - 262  Property, plant & equipment  391  (249)  -  (281)  (139)  Cash to accruals adjustment  (1,447)  1,447  -  -  -  Unrealised foreign exchange gains  (1,026)  285  -  -  (741)  Work in progress  (7,122)  (422)  -  -  (7,544)  Prepayments (403)  28  -  -  (375)  Goodwill on Acquisition (USA)  -  (1,472)  -  -  (1,472)  Retainage - (68) - - (68) Intangible Items  (823)  523  -  -  (300)  Sundry Items  329  (32)  -  -  297  1,052 1,359 - 698 3,109 Cardno Limited and its Controlled Entities for the year ended 30 June 2010