6.  Income tax  continued 2013  $’000 2012  $’000 c)  Tax recognised in other comprehensive income Available-for-sale investment revaluation reserve (39) (300) Foreign exchange losses recognised directly in foreign currency translation reserves 566 103 Total tax recognised in other comprehensive income 527 (197) d)  Deferred tax liabilities offset Deferred tax liabilities amounting to $853,000 (2012: $774,000) have been offset against deferred tax asset. e)  Unrecognised deferred tax assets Tax losses – Australian entities 211,548 5,627 Tax losses – other entities 9,237 2,185 Temporary difference 130,113 – Subtotal 350,898 7,812 Unrecognised deferred tax assets 104,345 2,344 f)  Tax consolidation group Kingsgate Consolidated Limited and its wholly- owned Australian subsidiary have implemented  the tax consolidation legislation as of 1 July  2003. The accounting policy in relation to this  legislation is set out in Note 2d. On adoption of the tax consolidation legislation,  the entities in the tax-consolidation group  entered into a tax sharing agreement which, in  the opinion of the Directors, limits the joint and  several liabilities of the wholly-owned entities in  the case of default by the head entity, Kingsgate  Consolidated Limited. The entities have also entered into a tax funding  agreement under which the wholly-owned  entities fully compensate Kingsgate for any  current tax payable assumed and are compen- sated for any current tax receivable and deferred  assets relating to the unused tax losses or  unused tax credits that are transferred to  Kingsgate under the tax legislation. The funding  amounts are determined by reference to the  amounts recognised in the wholly-owned enti- ties’ financial statements.  The amount receivable / payable under the tax  funding agreement are due upon receipt of the  funding advice from the head entity, which is  issued as soon as practicable after the end of  each financial year. The head entity may also  require payment of interim funding amounts to  assist with its obligations to pay tax instalments.  Assets Liabilities Net g)   Recognised deferred tax assets and liabilities 2013  $’000 2012  $’000 2013  $’000 2012  $’000 2013  $’000 2012  $’000 Deferred tax assets / liabilities: Derivatives  384  808 – –  384 808 Employee benefits  1,789 1,571 – –  1,789 1,571 Provision for restoration and rehabilitation 5,167 3,390 – – 5,167 3,390 Provision for obsolescence  309 278 – –  309  278 Unrealised exchange (gains) / losses  1,265 2,990 (2,020) (200) (755) 2,790 Other items  1,147 1,096 (467) –  680  1,096 Tax losses  – 36,334 – –  –  36,334 Available-for-sale financial assets  334 78 – (39)  334 39 Mine properties and exploration  3,706  – (11,447) (65,205)  (7,741) (65,205) Total deferred tax assets / (liabilities)  14,101  46,545 (13,934) (65,444)  167 (18,899) Set off tax  (3,706) (36,334)  3,706 36,334  – – Net deferred tax assets (liabilities)  10,395  10,211 (10,228)  (29,110)  167  (18,899) www.kingsgate.com.au Notes to the Financial Statements 82