TAV IT

TAV AIRPORTS HOLDING AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2008
(Amounts expressed in Euro unless otherwise stated)
At the balance sheet date, the Group has unused tax losses of EUR 243,381,299 (31 December 2007: EUR 137,891,661) available
for offset against future profits. Tax losses can be carried forward for five years under the current tax legislation. The Group
management assessed that EUR 34,434,949 (31 December 2007: EUR 47,497,970) of tax losses will not be utilised because it is not
probable that future taxable profit will be available against which the Group can utilize the benefits therefrom. Unutilised tax losses
will expire as follows:
31 December 2008 31 December 2007
Expire in year 2009 10,327,833 2,526,555
Expire in year 2010 20,807,110 27,043,313
Expire in year 2011 56,575,367 82,737,123
Expire in year 2012 20,993,327 25,584,670
Expire in year 2013 134,677,662 -
Total 243,381,299 137,891,661
In accordance with IAS 12 Income Taxes, at 31 December 2008, a deferred tax liability of TRY 20,308,700 related to investments in
subsidiaries and joint ventures was not recognized since it is assessed as probable that the temporary difference will not reverse in
the foreseeable future.
Movements of deferred tax assets are as follows:
1 January-
31 December 2008
1 January-
31 December 2007
Balance at 31 December 16,561,378 8,916,667
Correction of error (Note 43) 15,227 1,611,007
Effect of adoption of IFRIC 12 (Note 43) - (802,157)
Restated balance at 1 January 16,576,605 9,725,517
Recovery from profit or loss for the year 11,791,736 9,141,764
Recognised in equity 3,245,853 -
Acquisition effect - (352,946)
Change in group structure (*) - (1,937,730)
Balance at 31 December 31,614,194 16,576,605
(*) Balance represents the deferred tax liability arising from acquisition of 40% shares of HAVAŞ.
23. INVENTORIES
At 31 December 2008 and 2007, inventories comprised the following:
31 December 2008 31 December 2007
Duty free inventories 5,928,455 5,233,940
Spare parts and other inventories 2,716,234 3,089,020
Catering inventories 1,126,030 986,516
9,770,719 9,309,476
In year 2008, the write-down of inventories to net realizable value amounted to EUR 135,864 (2007: EUR 119,095).
The reversal of write-downs is nil in year 2008 (2007: EUR 216,862). The write-down and reversal are included in cost of duty free
inventory sold.