The amounts refer to taxes resulting from deductible temporary differences and from losses carried forward, which are deemed to be recoverable.
The breakdown of “Deferred tax assets and liabilities” by type of temporary difference, is as follows:
|
(in thousands of euro) |
2010 |
2009 |
||
|
|
Amount of temporary differences |
Tax effect |
Amount of temporary differences |
Tax effect |
|
Temporary difference liabilities from: - write-down of current assets |
152,193 |
48,907 |
126,013 |
39,629 |
|
- write-down of fixed assets |
67,982 |
21,640 |
56,511 |
18,289 |
|
- revaluation of current liabilities |
40,268 |
12,441 |
27,127 |
8,730 |
|
- revaluation of personnel provisions |
39,327 |
11,926 |
31,510 |
9,837 |
|
- revaluation of provisions for risks and losses |
51,446 |
15,896 |
82,948 |
24,933 |
|
- revaluation of long-term debt |
40 |
13 |
406 |
130 |
|
- write-down of financial instruments |
50,162 |
16,837 |
35,851 |
11,625 |
|
- tax losses from prior periods |
293,689 |
90,725 |
235,621 |
75,776 |
|
Total deferred tax assets |
695,107 |
218,385 |
595,987 |
188,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary difference assets from: - revaluation of current assets |
3,265 |
886 |
3,500 |
1,115 |
|
- revaluation of fixed assets |
532,349 |
170,147 |
518,739 |
163,586 |
|
- write-down of current liabilities |
16,571 |
5,163 |
3,646 |
1,171 |
|
- valuation of personnel provisions |
22,454 |
6,321 |
23,815 |
6,846 |
|
- write-down of provisions for risks and losses |
1,226 |
357 |
895 |
774 |
|
- revaluation of financial instruments |
30,983 |
10,354 |
25,476 |
8,497 |
|
Total deferred tax liabilities |
606,848 |
193,228 |
576,071 |
181,489 |
|
Net deferred taxes |
|
25,157 |
|
7,460 |
Earlier losses not utilized for the calculation of deferred taxes refer to CIR International for approximately € 424 million, which can be carried forward without any limit, and to the Sogefi group for € 15.7 million. It should be pointed out that no deferred tax assets were calculated for these losses because present conditions are such that there is no certainty that they can be recovered.
The changes in “Deferred tax assets and liabilities” during the year was as follows:
|
2010 |
Balance at 31.12.2009 |
Use of deferred taxes from prior periods |
Deferred taxes arising in period |
Exch. rate differences |
Other changes |
Balance at 31.12.2010 |
|
(in thousands of euro) |
||||||
|
Deferred tax assets: |
|
|
|
|
|
|
|
- income statement |
184,022 |
(26,031) |
54,582 |
-- |
(506) |
212,067 |
|
- shareholders’ equity |
4,927 |
(588) |
508 |
341 |
1,130 |
6,318 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
- income statement |
(180,882) |
5,704 |
(7,056) |
-- |
1,261 |
(180,973) |
|
- shareholders’ equity |
(607) |
298 |
(5,065) |
(775) |
(6,106) |
(12,255) |
|
Net deferred taxes |
7,460 |
|
|
|
|
25,157 |
|
2009 |
Balance at 31.12.2008 |
Use of deferred taxes from prior periods |
Deferred taxes arising in period |
Exch. rate differences |
Balance at 31.12.2009 |
|
(in thousands of euro) |
|||||
|
Deferred tax assets: |
|
|
|
|
|
|
- income statement |
114,310 |
(13,457) |
82,501 |
668 |
184,022 |
|
- shareholders’ equity |
3,791 |
(2,113) |
3,249 |
-- |
4,927 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
- income statement |
(174,916) |
11,621 |
(16,286) |
(1,301) |
(180,882) |
|
- shareholders’ equity |
13 |
(13) |
(607) |
-- |
(607) |
|
Net deferred taxes |
(56,802) |
(3,962) |
68,857 |
(633) |
7,460 |
The item “Other changes” refers mainly to business combinations.