CzeCh airlines - České aerolinie

Notes to the Consolidated Financial Statements
For the Year ended 31 December 2010
annual report 2010 | 130
16. TAXATION
During the 2010 tax period, the Group recognized the income tax provision in the
amount of CZK 3,885 thousand. During the 2009 tax period, the income tax was
CZK 83 thousand. In 2009, the income tax provision in the amount of CZK 25,409
thousand was released after the determination of the actual tax payable for 2008.
The deferred tax asset/(liability) is calculated at the 19% tax rate (2009: 19%).
The deferred tax asset/(liability) can be analysed as follows:
Deferred tax liability:
Equity
CZK’000
31 December 2010 31 December 2009
Profit and loss account
Equity
CZK’000
CZK’000
Profit and loss account
CZK’000
Difference between tax and accounting net book values of fixed assets (7,026) (560)
Hedging derivative instruments – short-term (14,429)
Hedging derivative instruments – long-term
Deferred tax asset:
(14,429) (7,026) (560)
Difference between tax and accounting net book values of fixed assets 57,712 42,642
Allowances 98,084 135,109
Provisions 318,162 356,396
Hedging derivative instruments – short-term 259 27,597
Hedging derivative instruments – long-term 78,794 87,900
Tax losses 457,475
79,053 931,433 115,497 534,147
Net deferred tax asset / (liability) 64,624 924,407 115,497 533,587
Recognized deferred tax assets / (liability) (985) 115,497 (560)
A deferred tax asset of CZK 115,497 thousand as at 31 December 2009 relating to
items recorded directly to equity was recorded to equity (Note 10).
In 2010, the deferred tax asset in the amount of CZK 115,497 thousand was derecognized.
The total deferred tax asset in the amount of CZK 988,046 thousand was not
recognized as the Group does not have reasonable certainty that the amount will be
recoverable in following periods. The Group recognized the deferred tax liability in the
amount of CZK 985 thousand (2009: CZK 560 thousand). The deferred tax liability is
not possible to settle with the deferred tax asset within the Group’s tax base.