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Amounts recognized under staff costs in the income
statement were as follows:
(In thousand euro) As of December 31
2011 2010
Current service cost 165 219
Interest expense on obligation 16 19
25 Deferred income
181 238
Deferred income relates to the upfront payment
received from Merck Serono International SA. Please
refer also to note 5 for additional details.
26 Trade and other payables
(In thousand euro) As of December 31
2011 2010
Trade payables 1,015 2,210
Accrued expenses 829 1,451
Pension contribution payable 179 227
Social security 101 117
Other payables 227 230
2,351 4,235
27 Deferred income taxes
The Group’s accounts include the following significant
temporary differences from the tax bases of the relevant
assets and liabilities:
(In thousand euro)
For the year ended
December 31
2011 2010
Other (IAS 19) (183) (163)
Total taxable differences (183) (163)
Other minor 1 1
Deferred income 120 400
Total deductible differences 121 401
Net temporary differences (62) 238
Tax losses carried forwards 114,562 108,544
Total differences 114,500 108,782
The above deferred tax asset has been measured using
the average tax rates that are expected to apply to the
taxable profit of the periods in which the temporary
differences are expected to reverse and has not been
recognized in the consolidated financial statements
due to uncertainties concerning the availability of
future taxable profits against which such an asset may
be offset, also considering the expiring dates of the tax
losses.
Tax-loss carry-forwards expire as follows:
(In thousand euro) December 31,
2011
No expiry date 22,875
No expiry date - DL 98/2011 91,687
114,562
The loss identified as “No expiry date” includes EUR
6,008 related to Newron Pharmaceuticals S.p.A. (since
they relate to the start-up costs) and EUR 16,867
related to Hunter-Fleming Ltd (equal to GBP 14,089
translated at the year-end exchange rate EUR 1 equal
to GBP 0.8353).
The “Tax-loss carry-forwards” balance increased by
EUR 5,984 due to the combined effects of the following
items: (a) exchange rate effect on Hunter-Fleming Ltd.
tax losses that results in an increase equal to EUR 500
and (b) inclusion of 2011 estimated tax losses equal to
EUR 5,518.
In 2011 the Italian Tax Authorities issued a new set of
rules that modified the previous treatment of tax-losses
carry-forwards. According to what has been stated
by the D.L. 98/2011, at the end of 2011, all existing taxlosses
carry-forwards will never expire but they can
offset only the 80% of the taxable income of the year.
The new rules don’t affect the tax-loss carry-forwards
that refer to the start-up period, defined as the first
three years of operations starting from the inception
of the Company.
Deferred tax asset 31,541 29,969
64 Newron Annual Report 2011