100 % FUTURE - ALNO

100
The carrying amount of deferred tax assets is reviewed at every reporting date, and reduced to the
extent to which it is no longer likely that an adequate taxable profit will be available against which
the deferred tax asset can at least be partially offset. Deferred tax assets that are not recognized
on the balance sheet are reviewed at every reporting date, and recognized to the extent to which
it has become likely that a future taxable profit will enable the deferred tax asset to be realized.
Deferred tax assets and liabilities are netted if the conditions for netting tax liabilities with tax
receivables apply.
In addition, no deferred tax assets and liabilities are recognized if they result from the initial recognition
of goodwill, an asset, or a liability, as part of a business transaction that is not a business
combination, and if this initial recognition impacts neither the accounting result before income taxes
nor taxable earnings.
Deferred taxes relating to items posted directly to equity are recognized in equity, and not in the
income statement.
Value added tax
Income, expenses, intangible assets, and property, plant and equipment are recorded after VAT has
been deducted, to the extent that VAT is recoverable from a tax authority. Receivables and liabilities
are recognized including VAT. Provisions are carried without taking VAT into account.
The amount of VAT to be refunded by a tax authority, or which is to be paid to a tax authority, is
carried under other assets or liabilities.
Intangible assets
Acquired and internally generated intangible assets are capitalized at cost according to IAS 38 if it
is likely that their use will result in future economic benefits, and if it is possible to reliably estimate
the costs of the asset.
The cost of intangible assets solely comprises directly allocable costs.
With regard to the accounting for, and measurement of, goodwill, please refer to our comments on
consolidation methods, and the information in the section “Impairment testing for goodwill”.
Other intangible assets, mostly software and other industrial property rights, are carried at cost, and
are subjected to amortization over a useful life of between two and ten years.
Research costs and non-capitalized development costs are carried as expenses on the date on
which they arise.
Intangible assets are either derecognized on disposal, or at the date when economic benefit is no
longer expected from the continued use or sale of the asset. The gains or losses resulting from
the disposal of the asset are calculated as the difference between the net realizable value and the
carrying amount of the asset, and are recognized in income in the consolidated income statement
in the period in which the asset is derecognized.