Save PDF - Manutencoop

139
on a systematic basis that offsets the related costs as they arise. The fair value of grants associated with assets is
deducted from the carrying amounts of such assets and, accordingly, is effectively released to the income statement
on a straight-line basis over the expected useful lives of the assets concerned via the systematic reduction of the
related depreciation charges.
Income taxes
Current taxes
The current taxes due to or recoverable from the tax authorities are stated at the amounts expected to be recovered or
paid. The tax rates and regulations used to calculate the above amounts are those in force at the balance sheet date.
Deferred taxes
Deferred taxes are calculated with reference to the temporary differences at the balance sheet date between the
reported value of assets and liabilities and their value for fiscal purposes.
Deferred tax liabilities are recognised in relation to all taxable temporary differences, except:
• when they derive from the initial recognition of the goodwill or an asset or liability arising from a transaction that
is not a business combination which, at the time of the transaction, had no effect on the profit for the year for
accounting purposes or on the taxable income or loss reported for fiscal purposes;
• when they relate to investments in subsidiaries, associates and joint ventures, in which case the reversal of temporary
differences can be controlled and is not likely to occur in the foreseeable future.
Deferred tax assets are recognised in relation to all deductible temporary differences and tax assets and liabilities
carried forward, to the extent that there is likely to be sufficient future taxable income to absorb upon reversal such
deductible temporary differences and carried-forward tax assets and liabilities, except:
• when they derive from the initial recognition of an asset or liability arising from a transaction that is not a business
combination which, at the time of the transaction, had no effect on the profit for the year for accounting purposes or
on the taxable income or loss reported for fiscal purposes;
• when they relate to investments in subsidiaries, associates and joint ventures, in which case they are only recognised
to the extent it is likely that such deductible temporary differences will reverse in the immediate future and that
taxable income will be sufficient for their recovery.
The deferred tax assets reported in the financial statements are reviewed at each accounting reference date and
reduced to the extent it is no longer likely that there will be sufficient future taxable income for their recovery,
either in whole or in part. Unrecognised deferred tax assets are reviewed annually, at the balance sheet date, and
recognised to the extent it has become likely that future taxable income will be sufficient for their recovery.
Deferred tax assets and liabilities are measured using the tax rates expected to apply in the year the assets are
realised or the liabilities are settled, as represented by the tax rates currently in force or essentially in force at the
balance sheet date.
The income taxes relating to items recorded directly as part of shareholders' equity are charged directly against
shareholders' equity and not to the income statement.
Deferred tax assets and liabilities are offset if there is a legal right to offset current tax assets and liabilities and such
deferred taxation relates to both the same fiscal entity and the same tax authority.
Value-added tax
Revenues, costs and assets are recognised net of value-added taxes, except:
• if the VAT charged on the purchase of goods and services is not recoverable, in which case it is recognised as part of
the purchase cost of the asset or part of the cost charged to the income statement;
• if the VAT relates to trade receivables or payables for which invoices have already been issued or received inclusive of
value-added tax.
The net indirect taxes on purchases and sales that are recoverable from or payable to the tax authorities are classified
as a receivable or a payable in the balance sheet, depending on the sign of the net balance.