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Annual Report & Accounts 2009 - Notes
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25 1.14 Financial Income Financial income is interest income recognised in the income statement as it accrues, using the effective interest method. 1.15 Tax Current tax is the tax currently payable based on taxable profit for the year. Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is neither provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries is not provided if reversal of these temporary differences can be controlled by the group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the group are assessed for recognition as deferred tax assets. Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date. Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity. 1.16 Segment reporting In identifying its operating segments, management generally follows the Group's key brands. The Group has identified the following reportable operating segments: CasinoClub German online casino operator; Betaland Italian online sports-book and gaming operator; Winzingo Spanish online bingo operator; Betboo South American internet gaming operator, offering bingo, casino, poker and sports betting Each of these operating segments is managed separately as each of these service lines requires different technologies and other resources as well as marketing approaches. All inter-segment transfers are carried out at arm's length prices. The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those used in its financial statements, except that segmental results are only reported to clean EBITDA level (earnings before interest, tax, depreciation and amortisation, and before exceptional items and share option costs). In addition, corporate assets which are not directly attributable to the business activities of any operating segment are not allocated to a segment.