DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS OF THE HEP GROUP (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2010
9. INCOME TAX (continued)
Tax losses reported by the Group and their expiry are presented below:
Year of loss origination
Total tax loss
reported by the Group
Year of expiry
2006 60,664 2011
2007 102,889 2012
2008 194,136 2013
2009 116,099 2014
2010 152,800
626,588
2015
As of 31 December 2010 and 2009 the Group did not recognise deferred tax assets arising from tax losses carried
forward at certain subsidiaries because the availability of future taxable profit against which the unused tax losses
can be utilized is not certain.
The Croatian Tax Authorities have not performed a review of the income tax returns of the Group and its
subsidiaries. In accordance with local regulations, the Tax Authority may at any time inspect the books and records
of any Group company within 3 years following the year in which the tax liability is reported and may impose additional
tax assessments and penalties. The Group management is not aware of any circumstances that may give
rise to a potential material liability in this respect.
The following table summarizes the movement in deferred tax assets during the year:
HRK’000
Value adjustment
of inventory
Provisions for
jubilee and
retirement
benefits
Litigation
provision
Depreciation
at rates above
statutory rates
Other Total
At 1 January 2009 - 55,864 7,708 2,434 562 66,568
Credited to profit and
loss for the year
21,675 9,299 9,972 1,085 11,752 53,783
At 31 December 2009 21,675 65,163 17,680 3,519 12,314 120,351
Credited to profit and
loss for the year
4,324 12,381 (13,130) 1,335 34,168 39,078
At 31 December 2010 25,999 77,544 4,550 4,854 46,482 159,429
93
HEP ANNUAL REPORT 2010
CHAPTER 6 - FINANCIAL STATEMENTS