british american tobacco p.l.c. annual report 2008 - Notes on the accounts: Notes 13-15

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13 Deferred tax

Deferred tax assets comprise:

Deferred tax liabilities comprise:

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The restatement of 2007 reflects the change in the Group's accounting policy for recognition of actuarial gains and losses together with the adoption of IFRIC14 as explained in note 1 and note 12.

The net deferred tax liabilities are reflected in the balance sheet as follows, after offsetting assets and liabilities where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred income taxes relate to the same fiscal authority.

Deferred tax expected to be recovered in the next 12 months:

At the balance sheet date, the Group has unused tax losses of £926 million (2007: £375 million) which have no expiry date and unused tax losses of £526 million (2007: £403 million) which expire after 5 years. No amount of deferred tax has been recognised in respect of these unused losses.

At the balance sheet date, the Group has not recognised a deferred tax asset in respect of deductible temporary differences of £839 million (2007: £575 million). These unrecognised deductible temporary differences have no expiry date.

At the balance sheet date, the Group has unused tax credits of £199 million (2007: £206 million) which have no expiry date. No amount of deferred tax has been recognised in respect of these unused tax credits.

At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised was £7 billion (2007: £5 billion). No liability has been recognised, in respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences, and it is probable that such differences will not reverse in the foreseeable future.

14 Trade and other receivables

Prepayments and accrued income include £72 million (2007: £53 million) in respect of dividends from associates and £9 million (2007: £11 million) in respect of interest.

Trade and other receivables have been reported in the balance sheet net of allowances as follows:

The movements in the allowance account are as follows:

Impairment of trade receivables charged during the year is included as part of other operating expenses. For 2008, the net impairment charged was £31 million (2007: £37 million) of which £30 million (2007: £19 million) is reflected in the above table.

As at 31 December 2008, trade and other receivables of £67 million (2007: £63 million) were past due their contractual payment date but not impaired. These relate to a number of external parties where there is no expectation of default. The age analysis of these trade receivables is as follows:

The Group holds bank guarantees, other guarantees and credit insurance in respect of some of the past due debtor balances.

Trade and other receivables are predominantly denominated in the functional currencies of subsidiary undertakings apart from the following:

Trade and other receivables also include certain interest-bearing amounts and their effective interest rates are as follows:

There is no material difference between the above amounts for trade and other receivables and their fair value, due to the short term duration of the majority of trade and other receivables. There is no concentration of credit risk with respect to trade receivables as the Group has a large number of customers, internationally dispersed.

15 Available-for-sale investments

Investments have the following maturities:

The contractual gross maturities in each year include the investments maturing in that year together with forecast interest receipts on all investments which are due for all or part of that year.

Investments are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below:

Non-equity investments are denominated in the following currencies:

Effective interest rates applicable to non-equity investments are as follows:

The fair values of available-for-sale investments are principally based on readily observable market data with the exception of an equity investment in an unquoted entity which is valued at £24 million (2007: £18 million) using the discounted cash flows of estimated future dividends.