AECON GROUP INC 53 20 CONCESSION RELATED DEFERRED REVENUE As part of acquiring in 2006 the rights to operate the Existing Quito Airport see Note 14 the Company recorded concession related deferred revenue of 57047 being the Canadian dollar equivalent of US57337 at December 31 2012 exchange rates 2011 US57337 or CA58313 Concession related deferred revenue represents the estimated value of the inducement received by Quiport JV to develop fnance and operate the New Quito Airport As at June 28 2006 CORPAQ also provided Quiport JV with net assets of US3897 being the Canadian equivalent of 3877 at December 31 2012 exchange rates 2011 US3897 or CA3963 These net assets which were received by Quiport JV between the date the concession went into effect January 27 2006 and the date of fnancial close June 28 2006 represent additional inducements and have been classifed as concession related deferred revenue in the consolidated balance sheets Concession related deferred revenue at December 31 2012 also includes 2990 2011 2990 received in 2006 as development funds and cost reimbursements related to the Quito Airport Project All the above concession deferred revenue amounts will be amortized to earnings over the term of the New Quito Airport concession period 21 INCOME TAXES The provision for income taxes differs from the result that would be obtained by applying combined Canadian federal and provincial statutory income tax rates to proft or loss before income taxes This difference results from the following The gross movement in the deferred income tax account is as follows December 31 December 31 2012 2011 At January 1 31120 40027 Exchange differences 200 584 Disposals of subsidiaries 97 Income statement charge recovery 2118 8147 Tax credit relating to components of other comprehensive income 210 1247 At December 31 32828 31120 The movement in the components of deferred income taxes is as follows 2012 2011 Charged Charged Charged Charged credited credited credited credited to the to other to the to other i n c o m e comprehensive i n c o m e comprehensive January 1 statement income Other December 31 January 1 statement income Other December 31 Deferred tax assets Canadian components Net operating and capital losses carried forward 73555 9323 82878 46460 27095 73555 Reserves expensed for fnancial statement purposes and deducted for income tax purposes when paid 2395 2461 4856 4482 2087 2395 Actuarial gains and losses 3065 210 3275 1818 1247 3065 Offset in deferred tax liabilities 38793 17985 56778 8007 30786 38793 Total Canadian deferred income tax assets 40222 6201 210 34231 44753 5778 1247 40222 Deferred tax liabilities Canadian components Property plant and equipment net book value in excess of tax basis 30139 6776 36915 18103 12036 30139 Longterm contracts including joint ventures 1 59984 13674 73658 51845 8139 59984 Other temporary differences 483 3352 3835 2389 1809 97 2 483 Other longterm differences 4327 977 5304 6959 2632 4327 Convertible debentures and related embedded derivatives 2828 1257 4085 1873 955 2828 Offset in deferred tax assets 38793 17985 56778 8007 30786 38793 Total Canadian deferred income tax liabilities 58968 8051 67019 73162 14097 97 58968 Foreign components Longterm contracts including joint ventures 12374 12134 200 3 40 11618 172 584 3 12374 Total deferred income tax liabilities 71342 4083 200 67059 84780 13925 487 71342 Total deferred income tax liabilities net 31120 2118 210 200 32828 40027 8147 1247 487 31120 1 Results from the difference between the use of the percentage of completion method of reporting for consolidated fnancial statements purposes and use of the uncompleted contracts and billings less costs excluding contractual holdbacks for tax purposes 2 Deferred tax on disposals of subsidiaries 3 Foreign exchange translation adjustment