Notes to the combined and consolidated financial statements - Mondi

Notes to the combined and
consolidated financial statements continued
for the year ended 31 December 2009
24 Deferred tax (continued)
The amount of deferred tax credited/(charged) to the combined and consolidated income statement is presented as follows:
E million 2009 2008
Capital allowances in excess of depreciation (25) (5)
Fair value adjustments 10 (37)
Tax losses 2 18
Other temporary differences 14 5
Total credit/(charge) 1 (19)
The current expectation regarding the maturity of deferred tax balances is:
E million 2009 2008
Deferred tax assets
Recoverable within 12 months 8 3
Recoverable after 12 months 21 33
Total deferred tax assets 29 36
Deferred tax liabilities
Payable after 12 months (316) (292)
Total deferred tax liabilities (316) (292)
The Group has the following amounts in respect of which no deferred tax asset has been recognised due to the unpredictability of
future profit streams or gains against which these could be utilised:
E million 2009 2008
Tax losses – revenue 1,763 955
Tax losses – capital 16 20
Other temporary differences 2 6
Total 1,781 981
Included in unrecognised tax losses, as at 31 December 2009, are losses of E1 million (2008: E4 million) that will expire within one
year, E62 million (2008: E10 million) that will expire between one and five years, and E148 million (2008: E40 million) that will
expire after five years. A further E1,568 million (2008: E921 million) of losses have no expiry date.
No liability has been recognised in respect of temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the Group is in a position to control the timing of the reversal of the temporary differences and
it is probable that such differences will not reverse in the foreseeable future. At 31 December 2009, the aggregate amount of
undistributed earnings of overseas subsidiaries for which deferred tax liabilities have not been recognised was E3.0 billion
(2008: E2.6 billion).
25 Retirement benefits
The Group operates post-retirement defined contribution and defined benefit plans for the majority of its employees. It also
operates post-retirement medical arrangements in South Africa. The accounting policy for pensions and post-retirement benefits
is included in note 1.
Defined contribution plans
The assets of the defined contribution plans are held separately in independently administered funds. The charge in respect of
these plans of E17 million (2008: E15 million) is calculated on the basis of the contribution payable by the Group in the financial
year. There were no material outstanding or prepaid contributions recognised in relation to these plans as at 31 December 2009
and 31 December 2008.
132 Annual report and accounts 2009 Mondi Group