2005 Annual report - Virbac

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Note R4 - Other financial income and expenses
(€ thousands) 2005 2004
Interest and related expenses 2,743 3,193
Foreign exchange losses 286 1,146
Other financial expenses 149 36
Total financial expenses 3,178 4,375
Foreign exchange gains 944 1,043
Other financial income 491 361
Total financial income 1,435 1,404
Net financial expenses -1,743 -2,971
Note R5 - Taxes
Reconciliation of the Group’s effective tax rate:
2005 2004
(€ thousands) Base Tax Base Tax
Profit before tax 30,346 25,281
Current tax 10,536 7,347
- French companies 2,599 537
- Foreign companies 7,937 6,810
Deferred tax -2,032 300
- French companies -2,484 522
- Foreign companies 451 -222
Total tax recognised 8,504 7,647
Effective tax rate 28.02% 30.25%
Theoretical tax rate 34.43% 35.43%
Theoretical tax 10,448 8,957
Variance between theoretical tax and tax recognised 1,945 1,310
Transactions which affect the amount of tax:
Earlier years’ deferred tax credits not previously recognised -1,057 0
Impact of differing tax rates applied outside France -308 -470
Impact of tax credits recognised in 2005 -760 -878
Impact of provisions for tax investigations 249 0
Impact of share of expenses
and losses of non-consolidated companies 208 203
Impact of revenues taxable at a reduced tax rate -104 -94
Impact of deductions at source charged to income -23 -23
Other effects -149 -48
Total transactions justifying the variance -1,945 -1,310
For the financial years 2005 and 2004, the reconciliation of the effective tax rate has been calculated on the basis of the tax rate
applicable in France for the relevant year, i.e. 34.43% and 35.43% respectively.