eurochem-annual-report-2011

26 Income tax continued
The movement in deferred tax (assets) and liabilities during 2011 and 2010 was as follows:
1 January
2011
Differences
recognition
and reversals
Business
combinations
Currency
translation
difference
(Note 2)
Effect
of change
in income
tax rate
31 December
2011
Tax effects of (deductible)/taxable temporary differences:
Property, plant and equipment and Intangible assets 2,278,677 1,191,339 1,777,537 4,562 (5,216) 5,246,899
Accounts receivable (32,383) (122,628) – (202) 3,505 (151,708)
Accounts payable (489,729) 246,665 – 328 9,837 (232,899)
Inventories (279,619) (190,826) – 484 (446) (470,407)
Other (27,008) (62,247) – 143 (1,821) (90,933)
Tax losses carried-forward (820,634) (986,394) (63,442) (1,338) 40 (1,871,768)
Unrecognised deferred tax assets 310,564 135,483 – – – 446,047
Net deferred tax liability 939,868 211,392 1,714,095 3,977 5,899 2,875,231
Recognised deferred tax assets (969,064) (853,501) 15,945 (618) 864 (1,806,374)
Recognised deferred tax liabilities 1,908,932 1,064,893 1,698,150 4,595 5,035 4,681,605
Net deferred tax liability 939,868 211,392 1,714,095 3,977 5,899 2,875,231
1 January
2010
Differences
recognition
and reversals
Business
combinations
Currency
translation
difference
(Note 2)
Effect
of change
in income
tax rate
31 December
2010
Tax effects of (deductible)/taxable temporary differences:
Property, plant and equipment and Intangible assets 2,201,245 76,042 – 1,390 – 2,278,677
Accounts receivable (27,059) (5,570) – 246 – (32,383)
Accounts payable (171,600) (318,437) – 308 – (489,729)
Inventories (1,243) (277,569) – (807) – (279,619)
Other (133,467) 95,827 – 10,632 – (27,008)
Tax losses carried-forward (1,282,955) 437,741 – 24,580 – (820,634)
Unrecognised deferred tax assets 59,013 251,551 – – – 310,564
Net deferred tax liability 643,934 259,585 – 36,349 – 939,868
Recognised deferred tax assets (1,328,848) 327,711 – 32,073 – (969,064)
Recognised deferred tax liabilities 1,972,782 (68,126) – 4,276 – 1,908,932
Net deferred tax liability 643,934 259,585 – 36,349 – 939,868
The amounts shown in the consolidated statement of financial position include the following:
2011 2010
Deferred tax assets expected to be recovered after more than 12 months (1,016,349) (265,180)
Deferred tax liabilities expected to be settled after more than 12 months 4,696,634 1,943,371
The total amount of the deferred tax charge is recognised in profit and loss.
27 Earnings per share
Basic earnings per share are calculated by dividing the net profit attributable to equity holders of the Company by the weighted average number of ordinary shares
in issue during the period, excluding treasury shares (Note 14). The Company has no dilutive potential ordinary shares, therefore, the diluted earnings per share
equals the basic earnings per share.
2011 2010
Net profit for the period attributable to owners of the parent 32,028,279 19,997,844
Weighted average number of ordinary shares in issue (expressed in thousands) 65,491 67,932
Basic and diluted earnings per share (expressed in RR per share) 489.05 294.38
Annual Report and Accounts 2011 EuroChem 105
Financial information