24. Deferred tax assets/deferred tax liabilities

Deferred taxes on loss carry-forwards and temporary differences amount to €738 million, a decline of €166 million compared with the previous year. At €159 million, the carrying amount of deferred tax liabilities was unchanged from the previous year.

Deferred taxes recognised concern the following balance sheet items:

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31/12/2011

31/12/2012

 

 

 

 

 

€ million

Asset

Liability

Asset

Liability

1

Revised terminology (see chapter “Notes to the Group accounting principles and methods”)

Goodwill

216

152

190

161

Other intangible assets

106

57

76

64

Tangible assets and investment properties

206

692

194

660

Financial investments1

12

1

6

2

Inventories

85

20

84

21

Other financial and
non-financial assets1

110

85

124

68

Provisions for pensions and similar obligations

138

12

144

28

Other provisions

101

11

82

4

Borrowings1

483

4

452

5

Other financial and
non-financial liabilities1

158

81

135

72

Outside Basis Differences

0

0

0

9

Write-downs of temporary differences

–50

0

–67

0

Loss carry-forwards

297

0

253

0

Total

1,862

1,115

1,673

1,094

Offset

–958

–958

–935

–935

Book value of deferred taxes

904

157

738

159

In accordance with IAS 12 (Income Taxes), deferred taxes relating to differences between the carrying amount of a subsidiary’s pro rata assets and liabilities in the balance sheet and the investment book value for this subsidiary in the parent company’s tax statement must be capitalised (so-called outside basis differences) if the tax benefit is likely to be realised in future. No deferred taxes were recognised for retained earnings of subsidiaries as these earnings will be reinvested over an indefinite period of time or are not subject to relevant taxation. In the financial year, €9 million in deferred tax liabilities from outside basis differences were recognised for planned dividend payments. There were no circumstances leading to a corresponding deferral during the previous year.

No deferred taxes were capitalised for the following tax loss carry-forwards and interest carried forward as well as temporary differences because a short-term realisation is not expected:

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€ million

2011

2012

Corporate tax losses

6,886

7,235

Trade tax losses

7,153

7,764

Interest carried forward

40

76

Temporary differences

164

298

The losses primarily concern Germany. They can be carried forward without limitation.

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Tax effects on components of other comprehensive income

 

 

 

 

 

 

 

 

2011

2012

 

 

 

 

 

 

 

€ million

Before taxes

Taxes

After taxes

Before taxes

Taxes

After taxes

Currency translation differences from the conversion of the accounts of foreign operations

–131

1

–130

128

–4

124

thereof currency translation differences of net investments in foreign operations

(–16)

(1)

(–15)

(25)

(–4)

(21)

Effective portion of gains/losses from cash flow hedges

28

–12

16

–31

5

–26

Gains/losses from the revaluation of financial instruments in the category "available for sale"

0

–1

–1

0

1

1

Other changes

0

0

0

0

0

0

Remaining income tax on other comprehen-
sive income

0

–9

–9

0

10

10

 

–103

–21

–124

97

12

109