Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.

Deferred income tax assets and liabilities are attributable to the following items:

	Deferred tax on derivatives		Deferred tax on tax losses	Total
	Assets €'000	Liabilities €'000	€'000	€'000
Balance at 1 January 2011	-	-	-	-
Movement in the year	182,182	(112,162)	235,633	305,653
Balance at 31 December 2011	182,182	(112,162)	235,633	305,653
Balance at 1 January 2012	182,182	(112,162)	235,633	305,653
Movement in the year	109,990	23,885	(102,240)	31,635
Balance at 31 December 2012	292,172	(88,277)	133,393	337,288

Reconciliation of movement in total deferred tax to tax credit/(charge) in the income statement and other comprehensive income

	2012 €'000	2011 €'000
Movement in deferred tax recognised in the income statement (Note 12)	(75,816)	236,769
Movement in deferred tax recognised in other comprehensive income (Note 34)	107,451	68,884
Total movement in deferred tax in the year	31,635	305,653

The Agency has no deferred tax assets or liabilities.

Deferred income tax assets are recognised in respect of tax losses carried forward only to the extent that realisation of the related tax benefit is probable. A deferred income tax asset of €133m (2011: €236m) in respect of unutilised tax losses has been recognised in these financial statements. Based on the current year results, NAMA believes that future taxable profits will be available to offset any deferred tax asset recognised.

Deferred tax on derivatives is recognised on the difference between the tax base of derivatives (nil) and the fair value of derivatives at the reporting date. A net deferred tax asset of €204m (2011: €70m) has been recognised in relation to derivatives. In accordance with accounting standards, deferred tax on the fair value movement on derivatives is recognised where the related fair value is accounted for, i.e. either in the income statement or in other comprehensive income. A deferred tax benefit of €107m (2011: €69m) has been recognised in other comprehensive income relating to deferred tax on the fair value movement on derivatives where hedge accounting is applied (See Note 34).