CREDIt RAtING OF ANADOLU EFES

Anadolu Efes Biracılık ve Malt Sanayii Anonim Şirketi
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2010
(Currency - Unless otherwise indicated thousands of Turkish Lira (TRL))
NOTE 2. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)
2.17 Current Income Tax and Deferred Tax
The tax expense for the year comprises current and deferred tax. Tax is recognized in the income statement,
except to the extent that it relates to items recognized directly in equity. In such case, the tax is also recognized
in equity.
The current income tax charge is calculated in accordance with the tax laws enacted or substantively enacted
at the balance sheet date in the countries where the subsidiaries and joint ventures of the Group operate.
Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax related to the equity
items is carried under the equity and not reflected to income statement. Deferred tax assets are recognized for
all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent
that it is probable that taxable profit will be available against which the deductible temporary differences, carryforward
of unused tax assets and unused tax losses can be utilized. The carrying amount of deferred tax assets
is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Deferred tax assets
and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to net off current
tax assets against current income tax liabilities and the deferred taxes relate to the same taxation authority.
2.18 Employee Benefits
a) Defined Benefit Plans
In accordance with existing social legislation in Turkey, the Group companies operating in Turkey are required
to make lump-sum termination indemnities to each employee who has completed over one year of service
with the Group and whose employment is terminated due to retirement or for reasons other than resignation
or misconduct. In the consolidated financial statements the Group has reflected a liability using the Projected
Unit Credit Method and based upon estimated inflation rates and factors derived using the Group’s experience
of personnel terminating their services and being eligible to receive such benefits and discounted by using the
current market yield at the balance sheet date on government bonds.
164