Richemont is one of the world's leading luxury - Alle jaarverslagen

Notes to the consolidated financial statements continued10. Taxation continuedAcquisition inRecognised business1 April 2008 Exchange (Charge)/credit directly combinationsre-presented adjustments for year in equity and transfer 31 March 2009€ m € m € m € m € m € mDepreciation 25 5 4 – – 34Provision on inventories 21 2 – – – 23Bad debt reserves 3 – – – – 3Retirement benefits 11 1 – – – 12Unrealised gross margin elimination 130 – 4 – – 134Tax losses carried forward 4 – 3 – – 7Deferred tax on option plan 24 (1) (12) (7) – 4Other 39 14 23 3 9 88Deferred income tax liabilities257 21 22 (4) 9 305Acquisition inbusinessExchange (Charge)/credit combinations1 April 2007 adjustments for year and transfer 31 March 2008€ m € m € m € m € mDepreciation (8) (4) 2 – (10)Provision on inventories (11) (2) 1 – (12)Other (13) (8) – (16) (37)(32) (14) 3 (16) (59)Acquisition inbusinessExchange (Charge)/credit combinations1 April 2008 adjustments for year and transfer 31 March 2009€ m € m € m € m € mDepreciation (10) (1) – (11) (22)Provision on inventories (12) (1) – – (13)Other (37) 3 (3) (6) (43)(59) 1 (3) (17) (78)At 31 March 2009, the Company and its subsidiary undertakings had taxation losses carried forward of € 300 million (2008: € 268 million)in respect of which deferred tax assets had not been recognised as the future utilisation of these losses is uncertain. Of this amount € 211 millioncan be carried forward with no expiry dates. Based on current rates of taxation, future utilisation of these losses would result in the recognitionof deferred tax assets at 31 March 2009 of € 82 million (2008: € 80 million).The Company and its subsidiary undertakings also had temporary differences of € 46 million (2008: € 46 million) in respect of which deferredtax assets had not been recognised as the future utilisation of these temporary differences is uncertain. Based on current rates of taxation, futureutilisation of these temporary differences would result in the recognition of deferred tax assets at 31 March 2009 of € 12 million (2008: € 14 million).10.2. Taxation chargeTaxation charge in the income statement:2009 2008re-presented€ m € mCurrent tax 152 204Deferred tax credit (19) (10)133 194The average effective tax rate is calculated in respect of profit before taxation but excluding the share of post-tax profit of associatedundertakings. The rates for the years ended 31 March 2009 and 2008 were 15.7 per cent and 16.9 per cent respectively.78 Richemont Annual Report and Accounts 2009Consolidated financial statements