2009 - Jaarverslag

12.2 Financial leasingLease payments are stated partly as financial expenses and partly as a repayment of the outstanding liability.The financing costs are allocated to each period of the total lease term in such a way that this results in aconstant periodic interest rate on the residual balance of the liability.13 FINANCIAL INCOME AND EXPENSESThe financial income and expenses include the interest income and expenses on invested and borrowed monies,interest charges on financial lease payments, foreign exchange rate differences, results from other participatinginterests and results of derivatives for which no hedge accounting is used. Interest income and expenses arestated in the statement of comprehensive income on the basis of the effective interest method.14 PROFIT TAXThe tax on profit for the financial year includes the taxation that is payable, available for set-off and deferred inrespect of the reporting period. The tax is stated in the statement of comprehensive income, except where itrelates to items which are included directly in equity, in which case the tax is stated in equity. Tax that ispayable and available for set-off in respect of the reporting period is the tax which is expected to be payable onthe taxable result, calculated on the basis of tax rates which have been set on the reporting date, or on which afirm decision has been taken by the reporting date, and corrections to tax payable in respect of previous years.A receivable/provision is recognised for deferred tax differences using the balance sheet liability method fortemporary differences between the book value of assets and liabilities for the financial reporting and the fiscalbook value of the items concerned. No provision is formed in respect of two temporary differences: non-taxdeductiblegoodwill and the difference between the economic and fiscal value of operating companies,associated companies, joint ventures and other participating interests. The amount of the provision for deferredprofit tax liabilities is based on the method by which the book value of the assets and liabilities is expected tobe realised or settled, using tax rates which, on the reporting date, have been specified by law or in respect ofwhich an effective legal decision has been taken. The amount of deferred profit tax assets is reduced to theextent that it is no longer likely that the associated tax benefit will be realised. Additional taxes on the profit inrespect of dividend payments are stated at the same time as the liability to pay the respective dividend.Deferred profit tax assets and liabilities are offset if there is a legally enforceable right to offset the profit taxassets and liabilities and such assets and liabilities relate to profit tax imposed by the same tax authority on thesame taxable entity, or on different taxable entities which intend to offset the profit tax assets and liabilities orwhose profit tax assets and liabilities are realised simultaneously.A deferred profit tax asset is only recognised to the extent that it is likely that future taxable profits will beavailable which can be applied for the realisation of the timing difference. Deferred profit tax assets arereviewed on each reporting date and reduced if it is no longer likely that the associated tax benefit will berealised.Royal Ten Cate Annual Report 2009 95