Page 140 - Pakistan Oilfields Limited - Annual Report 2021

NOTES TO AND FORMING

PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2021

2021 2020
Rupees ('000)

9. DEFERRED LIABILITIES
Provision for deferred income tax - note 9.1 5,585,793 5,930,675
Provision for decommissioning costs - note 9.2 14,389,227 14,089,542
Provision for staff compensated absences 3,299 6,768
19,978,319 20,026,985
9.1 Provision for deferred income tax

The provision for deferred income tax represents:

Temporary differences between accounting and
tax depreciation/ amortization 5,907,912 6,194,355
Provision for stores and spares (191,873) (173,851)
Provision for doubtful receivable (93) (93)
Deferred tax on remeasurement (loss) on
staff retirement benefit plans (130,153) (89,736)
5,585,793 5,930,675
9.2 Provision for decommissioning costs

Balance brought forward 14,089,542 11,811,608
Revision due to change in estimates - note 9.2.1 (193,498) 65,806
Provision made during the year 335,429 173,660
Unwinding of discount 1,123,961 1,594,927
Exchange (gain) / loss (869,170) 611,283
Decommissioning cost incurred during the year (97,037) (167,742)
14,389,227 14,089,542

9.2.1 Revision due to change in estimates

Charged to related asset - note 13 38,574 274,982
Revision in excess of related asset credited to
statement of profit or loss - note 25 (232,072) (209,176)
(193,498) 65,806

138 PAKISTAN OILFIELDS LIMITED