TŽ Annual Report 2008 in pdf, 7.5 MB - Třinecké železárny

4.8. Reserves (CZK thousand)Reserves under special legislation Other reserves Total reservesReserve for repairs Reserve for restorationof tangible FABalance at 31 Dec 2006 234 750 1 971 242 363 479 084Creation 11 250 257 235 368 246 875Use 156 000 330 33 572 189 902Balance at 31 Dec 2007 90 000 1 898 444 159 536 057Creation 0 135 443 614 443 749Use 45 000 376 532 066 577 442Balance at 31 Dec 2008 45 000 1 657 355 707 402 364The reserves for repairs of tangible fixed assets (tax deductible) were made for repairs of main production facilities in compliance with the ProvisioningAct. The creation of reserves is based upon a long-term repair plan, timing and budget of repairs.Other reserves consist of reserves for the scrapping of equipment, emission allowances, additionally assessed taxes, real estate transfer tax, employeebonuses, losses incurred in connection with concluded long-term contracts.4.9. Payables4.9.1. Long-Term Payables (CZK thousand)Balance at 31 Dec 2008 Balance at 31 Dec 2007 Balance at 31 Dec 2006Long-term payables– Long-term trade payables 11 570 25 015 6 096– Long-term prepayments received 1 361 369 0– Long-term bills of exchange to be settled 0 0 27 495– Other payables 1 000 0 706– Deferred tax liability 511 589 594 206 684 053Total 525 520 619 590 718 350Long-term trade payables include the aggregate amount of CZK 11,570 thousand relating to retentions from suppliers under concluded contracts.As of 31 December 2006, long-term bills of exchange to be settled reflected the nominal value of bills of exchange issued in order to cover the due amountarising from the renovation and modernisation of the light section mill. Interest expense on these bills of exchange is recorded as a deferred expense. Asof 31 December 2008 and 2007, the bills of exchange are posted to short-term trade payables.4.9.2. Deferred Income TaxThe deferred tax liability is analysed as follows:(CZK thousand)Deferred tax arising from Balance at 31 Dec 2008 Balance at 31 Dec 2007 Balance at 31 Dec 2006Difference between tax and accounting carrying value of fixed assets –4 217 310 –4 019 885 –3 679 365Revaluation of available-for-sale securities 20 0 20Accounting reserves 355 616 444 139 242 303Provisions 1 093 116 329 790 536 199Expenses tax deductible in the following periods 9 123 64 583 50 621Total –2 759 435 –3 181 373 –2 850 222Tax rate (in %) 20, 19 21, 19 24Deferred tax liability –511 589 –594 206 –684 053As of 31 December 2008, the Company anticipates realising certain temporary differences giving rise to a deferred tax asset in 2009 and hence it used thetax rate of 20 percent. By contrast, the Company used the 19 percent tax rate in respect of other temporary differences giving rise to a deferred tax liabilityand a deferred tax asset to be realised after 2009.(CZK thousand)Analysis of movements1 January 2008 –594 206Current changes charged against the profit and loss account 82 630Total changes against the profit and loss account 82 630Current changes charged against equity –1331 December 2008 –511 589A N N U A L R E P O R T T Ř I N E C K É Ž E L E Z Á R N Y , a . s . 2 0 0 853