(d)  Deferred income tax at 30 June relates to the following: The Company and its 100% owned subsidiaries are a tax consolidated group with effect from 1 July 2004. Metals X Limited is the  head entity of the tax consolidated group. Members of the group have entered into a tax sharing agreement that provides for the  allocation of income tax liabilities between the entities should the head entity default on its tax payments obligations. No amounts  have been recognised in the financial statements in respect of this agreement on the basis that the possibility of default is remote. Members of the tax consolidated group have entered into a tax funding agreement. The tax funding agreement provides for  the allocation of current taxes to members of the tax consolidated group. Deferred taxes are allocated to members of the tax  consolidated group in accordance with a group allocation approach which is consistent with the principles of AASB 112 ‘Income  Taxes’. The allocation of taxes under the tax funding agreement is recognised as an increase/decrease in the controlled entities  intercompany accounts with the tax consolidated group head company, Metals X Limited. The nature of the tax funding agreement  is such that no tax consolidation contributions by or distributions to equity participants are required. At 30 June 2011, there are unrecognised losses of $7,862,244 for the Consolidated Entity (2010: $22,237,568). (g) Unrecognised Losses (f) Tax effect accounting by members of the tax consolidated group (e) Tax Consolidation 84  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011  Statement of financial position Statement of comprehensive income 2011 2010 2011 2010 Deferred tax liabilities Intangible assets - - - 7,208,313  Exploration (16,365,494) (15,983,715) (381,781) (594,178) Deferred mining (4,796,171) (3,513,503) (1,282,668) 3,746,015  Mine site establishment and refurbishment (2,150,246) (2,694,073) 543,827  5,025,762  Research and development (794,545) (794,545) - 777,701  Available-for-sale financial assets (7,246,353) - (7,246,353) - Interest receivable (430,145) (13,784) (416,361) (13,784) Inventories (738,210) (668,750) (69,460) 953,446  Diesel rebate (4,397) (927) (3,470) 13,793  Gross deferred tax liabilities (32,525,561) (23,669,297) Deferred tax assets Accelerated depreciation for tax purposes 3,136,644  3,713,210  (576,565) (932,202) Accelerated amortisation for tax purposes - - - (2,747,828) Investment in associates 5,778  256,843  (251,065) (342,030) Derivative held for trading - 146,878  (146,878) 17,239  Inventories 114,407  664,178  (549,771) (1,044,039) Borrowing costs - 13,288  (13,288) (1,798) Equity raising costs 37, 775 123,336  - - Accrued expenses 37,650  35,955  1,695  (1,545) Provision for employee entitlements 353,659  279,329  74,330  (221,718) Provision for fringe benefits tax 3,521  3,343  178  2,637  Provision for rehabilitation 933,196  930,688  2,508  (641,375) Recognised tax losses 27,902,931  17,502,249 Gross deferred tax assets 32,525,561  23,669,297  Net deferred tax liabilities - - Deferred tax income benefit (10,315,122) 11,204,409 