Review of 2010 – USD version - Skanska

Note
16
Continued The net amount of deferred tax assets and deferred tax liabilities changed by
USD –27.1 M from a net asset to a net liability.
Deferred tax assets and deferred tax liabilities
Dec 31, 2010 Dec 31, 2009 Jan 1, 2009
Deferred tax assets according to the
statement of financial position 216.4 216.3 257.4
Deferred tax liabilities according to the
statement of financial position 240.6 213.6 210.8
Net deferred tax assets (+), deferred tax
liabilities (–) –24.3 2.8 46.6
Dec 31, 2010 Dec 31, 2009 Jan 1, 2009
Deferred tax assets for loss carry-forwards 27.6 18.1 77.6
Deferred tax assets for other assets 67.6 50.4 62.2
Deferred tax assets for provisions for
pensions 44.8 86.1 110.4
Deferred tax assets for ongoing projects 77.9 69.0 35.2
Other deferred tax assets 177.1 145.9 166.5
Total before net accounting 395.1 369.5 451.9
Net accounting of offset table deferred tax
assets/liabilities –178.7 –153.2 –194.5
Deferred tax assets according to the
statement of financial position 216.4 216.3 257.4
Dec 31, 2010 Dec 31, 2009 Jan 1, 2009
Deferred tax liabilities for shares and
participations 37.6 47.7 38.1
Deferred tax liabilities for other
non-current assets 43.7 48.3 41.4
Deferred tax liabilities for other
current assets 59.5 50.9 64.9
Deferred tax liabilities for ongoing projects 162.3 152.1 179.3
Other deferred tax liabilities 116.3 67.8 81.6
Total before net accounting 419.4 366.7 405.3
Net accounting of offsettable deferred tax
assets/liabilities –178.7 –153.2 –194.5
Deferred tax liabilities according to the
statement of financial position 240.6 213.6 210.8
Deferred tax assets other than for loss carry-forwards refer to temporary differences
between carrying amounts for tax purposes and carrying amounts recognized in the
statement of financial position. These differences arise, among other things, when the
Group’s valuation principles diverge from those applied locally by a subsidiary. These
deferred tax assets are mostly realized within five years.
Deferred tax assets arise, for example, when a recognized depreciation/amortization/
impairment loss on assets becomes deductible for tax purposes only in a later
period, when eliminating intra-Group profits, when the provisions for defined-benefit
pensions differ between local rules and IAS 19, when the required provisions become
tax-deductible in a later period and when advance payments to ongoing projects are
taxed on a cash basis.
Deferred tax liabilities on other assets and other deferred tax liabilities refer to temporary
differences between carrying amounts for tax purposes and carrying amounts in
the statement of financial position. These differences arise, among other things, when
the Group’s valuation principles diverge from those applied locally by a Group company.
These deferred tax liabilities are mostly realized within five years.
For example, deferred tax liabilities arise when depreciation/amortization for tax
purposes in the current period is larger than the required economic depreciation/amortization
and when accrued profits in ongoing projects are taxed only when the project
is completed.
Temporary differences attributable to investments in Group companies, branches,
associated companies and joint ventures for which deferred tax liabilities were not
recognized totaled USD 0.0 M (0.0). In Sweden and a number of other countries, divestments
of holdings in limited companies are tax-exempt under certain circumstances.
Temporary differences thus do not normally exist for shareholdings by the Group’s companies
in these countries.
Temporary differences and loss carry-forwards that are not recognized
as deferred tax assets
Dec 31, 2010 Dec 31, 2009 Jan 1, 2009
Loss carry-forwards that expire within
one year 0.0 0.0 6.7
Loss carry-forwards that expire in more
than one year but within three years 41.6 35.1 4.8
Loss carry-forwards that expire in more
than three years 126.9 172.9 266.6
Total 168.5 208.0 278.1
Change in net deferred tax assets (+), liabilities (–)
2010 2009
Net deferred tax assets, January 1 2.8 27.2
Change in accounting principle 19.4
Adjusted net tax assets, January 1 2.8 46.6
Skanska has loss carry-forwards in a number of different countries. In some of these
countries, Skanska currently has no operations or limited ones. In certain countries,
current earnings generation is at such a level that the likelihood that a loss carry-forward
can be utilized is difficult to assess. There may also be limitations on the right to offset
loss carry-forwards against income. In these cases, no deferred tax asset is reported for
these loss carry-forwards.
Divestments of companies 8.5
Recognized under other comprehensive income –40.6 –30.4
Deferred tax benefits 19.0 –14.5
Exchange rate differences –13.9 1.1
Net deferred tax liabilities/assets, December 31 –24.3 2.8
122 Notes, including accounting and valuation principles Skanska Review of 2010 – USD version