Income Tax

Income tax expense for the year ended December 31 was as follows:

	2014 г.	2013 г.
Current income tax expense	61 721	77 059
Adjustments in respect of income tax of previous periods	(5 358)	3 306
Deferred tax expense/(benefit) related to origination and reversal of temporary differences	(41 087)	17 478
Total income tax expense	15 276	97 843

Profit/(loss) before tax is reconciled to tax expense as follows:

	2014 г.	2013 г.
Profit/(loss) before tax	(201 373)	312 383
Theoretical tax charge at statutory rate in Russia of 20%	(40 275)	62 477
Adjustments in respect of income tax of previous periods	(5 358)	3 306
Effect of items which are not deductible for taxation purposes or not taxable	70 525	20 021
Effect of different tax rates in countries other than Russia	(14 005)	10 551
Tax on dividends distributed inside the Group	1 326	904
Effect of differences in tax rates on dividend income	(9)	(326)
Increase due to acquisition of subsidiaries	–	479
Effect of unrecognised tax credits, tax losses and temporary differences of previous periods	3 210	145
Other	(138)	286
Total income tax expense	15 276	97 843

Deferred income tax assets and liabilities, their movements for the year ended December 31, 2014 were as follows:

	2014 г.	Change recognised in income statement	Change recognised in other comprehensive income/ (loss)	Currency translation adjustments	2013 г.
Valuation and depreciation of property, plant and equipment	(246 057)	(25 888)	–	79 252	(299 421)
Valuation and amortisation of intangible assets	(31 617)	1 707	–	(134)	(33 190)
Tax losses available for offset	169 140	48 957	120 406	(53 121)	52 898
Provisions and accruals	18 246	4 132	–	(4 684)	18 798
Finance lease obligations	8 319	2 827	–	(3 650)	9 142
Valuation of inventory	15 396	10 106	–	(2 800)	8 090
Valuation of accounts receivable	4 549	1 154	–	(1 876)	5 271
Other	1 200	(1 908)	(406)	(648)	4 162
	(60 824)	41 087	120 000	12 339	(234 250)
Reflected in the statement of financial position as follows:
Deferred tax liability	(205 667)	33 938	–	58 269	(297 874)
Deferred tax asset	144 843	7 149	120 000	(45 930)	63 624

Deferred income tax assets and liabilities, their movements for the year ended December 31, 2013 were as follows:

	2013 г.	Change recognised in income statement	Change recognised in other comprehensive income/ (loss)	Acquisition and disposal of subsidiaries	Currency translation adjustments	2012 г.
Valuation and depreciation of property, plant and equipment	(299 421)	(16 486)	–	479	14 823	(298 237)
Valuation and amortisation of intangible assets	(33 190)	5 791	–	–	4	(38 985)
Tax losses available for offset	52 898	(16 950)	16 348	(117)	(3 701)	57 318
Provisions and accruals	18 798	2 544	–	(8)	(779)	17 041
Finance lease obligations	9 142	316	–	–	(694)	9 520
Valuation of inventory	8 090	7 785	–	(370)	152	523
Valuation of accounts receivable	5 271	3 456	–	(152)	(208)	2 175
Other	4 162	(3 934)	(163)	–	(171)	8 430
	(234 250)	(17 478)	16 185	(168)	9 426	(242 215)
Reflected in the statement of financial position as follows:
Deferred tax liability	(297 874)	(7 987)	–	–	12 427	(302 314)
Deferred tax asset	63 624	(9 491)	16 185	(168)	(3 001)	60 099

Deferred tax assets were recognised for tax losses carry-forward to the extent that the realisation of the related tax benefit through future taxable profits is probable.

As at December 31, 2014, the Group has not recognised deferred tax liability in respect of 907,714 (December 31, 2013: 1,372,526) temporary differences associated with investments in subsidiaries as the Group is able to control the timing of the reversal of those temporary differences and does not intend to reverse them in the foreseeable future.