Income Statement Reconciled with Gross Profit - Excel by ouz11532

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									OUTOKUMPU                                                                    ANNUAL REPORT 2009               1 (2)




11. Income taxes
Income taxes in the income statement

€ million                                                                                2009          2008
Current taxes                                                                              -4            -6
Deferred taxes                                                                            146            30
                                                                                          142            24

The difference between income taxes at the statutory tax rate of 26% in Finland and income taxes
recognised in the consolidated income statement is reconciled as follows:


€ million                                                                                2009          2008
Hypothetical income taxes at Finnish tax rate on consolidated profit before tax           123            35
Difference between Finnish and foreign tax rates                                           30            20
Tax effect of non-deductible expenses and tax exempt income                                 6            -7
Tax effect of losses for which no deferred tax benefit is recognized                      -13           -29
Changes in the carrying amounts of deferred tax assets from prior years                     1             1
Taxes for prior years                                                                      -1            -2
Impact of the changes in the tax rates on deferred tax balances                            -0             4
Tax effect of net results of associated companies                                          -3            -1
Effects of consolidation and eliminations                                                  -0             0
Other items                                                                                -1             1
Income taxes in the consolidated income statement                                         142            24


Deferred income taxes in the balance sheet

€ million                                                                                2009          2008
Deferred tax assets                                                                        42            37
Deferred tax liabilities                                                                 -100          -216
Net deferred tax liability                                                                -58          -179

Deferred taxes have been reported as a net balance of those group companies that file a consolidated
tax return or that may otherwise be consolidated for current tax purposes.


The gross movements of the deferred income tax balances

€ million                                                                                2009          2008
Net deferred tax liability on Jan. 1                                                     -179          -215
Translation differences                                                                    -2             9
Recognised in the income statement                                                        146            30
Recognised in other comprehensive income                                                  -23            26
Acquired subsidiaries                                                                       -           -29
Net deferred tax liability on Dec. 31                                                     -58          -179




11. Taxes
OUTOKUMPU                                                                   ANNUAL REPORT 2009                                                                          2 (2)



Movement in deferred tax assets and liabilities during the financial year

                                                                                                                              Recognised
                                                                                                               Recognised         in other
                                                                                                                     in the      compre-
2009                                                                                               Translation     income         hensive  Acquired
€ million                                                                                 Jan. 1   differences  statement         income subsidiaries        Dec. 31
Deferred tax liabilities
        Depreciation difference and other untaxed reserves                                  -198            -4           13             -             -         -189
        Fair value adjustments                                                               -16            -0            6            -2             -          -12
        Effects of consolidation and eliminations                                             -1             -           -0             -             -           -1
        Other taxable temporary differences                                                  -66            -0           18             -             -          -49
                                                                                            -282            -4           37            -2             -         -252

Deferred tax assets
      Tax losses carried forward                                                              25             3          104             -             -          132
      Fair value adjustments                                                                   8             -           13           -21             -            -
      Pension obligations                                                                      9            -0            3             -             -           12
      Effects of consolidation and eliminations                                                4             -           -1             -             -            3
      Other tax deductible temporary differences                                              57            -0          -10             -             -           46
                                                                                             103             2          108           -21             -          193

Net deferred tax liability                                                                  -179            -2          146           -23             -          -58



                                                                                                                              Recognised
                                                                                                               Recognised         in other
                                                                                                                     in the      compre-
2008                                                                                               Translation     income         hensive  Acquired
€ million                                                                                 Jan. 1   differences  statement         income subsidiaries        Dec. 31
Deferred tax liabilities
        Depreciation difference and other untaxed reserves                                  -230             8           25              -           -1         -198
        Fair value adjustments                                                                -8             -           23              -          -31          -16
        Effects of consolidation and eliminations                                             -1             -           -0              -            -           -1
        Other taxable temporary differences                                                  -62             1           -5              -            -          -66
                                                                                            -301             8           43              -          -32         -282

Deferred tax assets
      Tax losses carried forward                                                              20            -0            5             -             -           25
      Fair value adjustments                                                                   0             -          -18            26             -            8
      Pension obligations                                                                      7             0            2             -             -            9
      Effects of consolidation and eliminations                                               10             0           -6             -             -            4
      Other tax deductible temporary differences                                              50             1            3             -             3           57
                                                                                              86             1          -14            26             3          103

Net deferred tax liability                                                                  -215             9           30            26           -29         -179


Aggregate deferred taxes recognised in other comprehensive income

€ million                                                                                  2009          2008
Cashflow hedging                                                                             10            17
Available-for-sale financial assets                                                          -4             5
Net investment hedging                                                                       -6             -
Other comprehensive income in associated companies                                           -2             -
                                                                                             -1            21

Deferred tax assets of EUR 82 million (2008: EUR 53 million) have not been recognised in the consolidated financial statements because the realisation of the tax
benefit included in these assets is not probable. Majority of these unrecognised deferred tax assets relate to tax losses amounting to EUR 246 million (2008: EUR
163 million), which can be carried forward in the future. EUR 6 million of these tax losses (2008: EUR 4 million) will expire within next five years and the rest
earliest in 2015. The consolidated balance sheet includes deferred tax assets of EUR 57 million (Dec. 31, 2008: EUR 23 million) in subsidiaries, which have
generated losses in current or in prior year. The recognition of these assets is based on result estimates, which indicate that the realisation of these deferred tax
assets is probable.




11. Taxes

								
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