Lendlease Annual Report 2022

Financial Statements 133 9.c. Deferred Tax Assets and Liabilities continued 1 July 2020 Recognised in Income Recognised in Equity Other/ Foreign Exchange 30 June 2021 $m $m $m $m $m June 2021 Movement in temporary differences during the financial year: Loans and receivables (51) (35) - (4) (90) Inventories (389) 98 - 9 (282) Other financial assets (49) - - 9 (40) Other assets 91 24 - (7) 108 Equity accounted investments (399) (16) 10 - (405) Investment properties (57) 36 - 4 (17) Property, plant and equipment 14 14 (4) 4 28 Intangible assets (21) 2 - 1 (18) Net defined benefit plans (13) 1 (41) 2 (51) Trade and other payables 190 (2) - (18) 170 Provisions 135 (33) - 15 117 Borrowings and financing arrangements 49 8 (6) 3 54 Other financial and non financial liabilities 16 2 - 2 20 Unused revenue tax losses recognised 157 2 - (60) 99 Unused capital tax losses recognised - 9 - - 9 Items with a tax base but no carrying value 34 (14) (3) (5) 12 Total net deferred tax (liabilities)/assets (293) 96 (44) (45) (286) June 2022 June 2021 $m $m Unrecognised Deferred Tax Assets Deferred tax assets have not been recognised in respect of the following items: Unused revenue tax losses 74 54 Unused capital tax losses 102 132 Net deductible temporary differences 69 72 Total unrecognised deferred tax assets 245 258 Of the unrecognised deferred tax assets of $245 million, only $31 million expires between 2023 to 2037. The remainder of the unrecognised deferred tax assets have no expiry date. 10. Events Subsequent to Balance Date On 14 July 2022, Lendlease and Mitsubishi Estate Asia formed a joint venture to acquire the One Circular Quay development in Sydney for approximately $800 million in up front and deferred consideration, with an additional $50 million payment subject to certain project outcomes. Mitsubishi Estate currently holds a 19.9 per cent interest in the joint venture. Subject to the satisfaction of certain conditions, this will increase to 66.7 per cent and Lendlease’s ownership will reduce to 33.3 per cent. Lendlease will receive an acquisition fee on settlement, earn development management and construction management fees, equity returns on its capital and potentially performance fees. On 9 August 2022, the Group exchanged contracts with a third party to acquire a further 13 per cent interest in the asset management income stream of the Group’s Military Housing portfolio, through the existing DoD Asset Management Holdings joint venture. The Group received $86 million in consideration on financial close, generating an estimated pre tax gain on sale of $73 million. There were no other material events subsequent to the end of the financial reporting period.