01 Gothaer Konzern_E_09_Umschl - Gothaer Allgemeine ...

Consolidated Financial Statements
Taxes
Other assets
Equity
Underwriting reserves
Tax assets or tax debts that need to be recognized under national tax laws are included
in the current taxes.
In deferred taxes temporary differences between carrying amounts in the IFRS balance
sheet and the tax base are accounted for by recognition of deferred tax assets or
liabilities. Deferred taxes may also result from the carryforward of unused tax losses or
from consolidation issues. Deferred tax assets are recognized only if an offset with future
taxable profit is probable. The recoverability of deferred tax assets is reviewed as of each
reporting date pursuant to IAS 12.56. The tax rate is determined based on the respective
tax situation of individual items or that of the Group companies.
Changes in tax rates are taken into account as soon as they are enacted. Deferred taxes
are to be consistently recognized in connection with the business transactions from
which they result. This means that transactions with an impact on profit or loss result in
recognition of deferred taxes in the statement of income and transactions with no impact
on profit or loss result in recognition of deferred taxes directly in equity.
All other assets are shown at cost less accumulated depreciation or at nominal value
less any necessary impairment losses.
Equity is subdivided in the four positions revenue reserves, other reserves, consolidated
profit for the year and minority interests. Other reserves mainly include unrealized gains
and losses on investments available for sale after allocation to reserves for deferred
premium refunds and adjustment for deferred taxes and the effects of consolidation.
Gross underwriting reserves are shown under liabilities. The reinsurers’ shares are shown
on the assets side. Reinsurers’ shares are also recognized separately in the statement
of income. The value of reinsurers’ shares of underwriting reserves is established based
on individual reinsurance treaties.
126 Gothaer Group Annual Report 2009