Annual Report 2008 Sustainable design & engineering - Grontmij

Notes to the consolidated financial statements
Income taxes
Income taxes comprises current and deferred tax. Income taxes are recognised in profit or loss except to the extent that it relates to items
recognised directly in equity, in which case they are recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date,
and any adjustment to tax payable in respect of previous years.
Deferred tax is not recognised for the following temporary differences:
o the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor
taxable profit;
o differences relating to investments in subsidiaries and jointly controlled entities to the extent that they probably will not reverse in the
foreseeable future.
Deferred tax is recognised using the balance sheet method providing for temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the carrying amounts used for taxation purposes.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that
have been enacted or substantially enacted at the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be
utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend.
Earnings per share
Grontmij presents basic and diluted earnings per share (EPS) data. Basic EPS is calculated by dividing the profit or loss attributable to ordinary
shareholders of Grontmij by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting
the profit or loss attributable to ordinary shareholders of Grontmij and the weighted average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares.
Cash flow statement
The cash flow statement is prepared in accordance with the indirect method and constitutes an explanation of the change in net cash, defined
as cash and cash equivalents less bank overdrafts. In the cash flow statement, a differentiation is made between cash flows from operating,
investing, and financing activities.
Considering the nature of the Group’s operations, the share in the results of equity accounted investees and dividends received is regarded as
part of cash flow from operating activities.
Cash flows in other currencies then the euro are translated at the exchange rates, prevailing against at the date of transaction. The Group uses
periodically fixed average exchange rates which effectively approximate the exchange rates on transaction dates.
Segment reporting
A segment is a distinguishable component of the Group that is engaged in providing services within a particular economic environment
(geographical segment). The business segments are determined based on the Group’s management and internal reporting structure.
Inter-segment pricing is determined on an arm’s length basis.
Results, assets and liabilities of a segment include items directly attributable to a segment as well as those that can be allocated on a reasonable
basis.
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GRONTMIJ | ANNUAL REPORT 2008