Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 10615. Income tax expenseRecognised in the income statement(€ x 1,000) 2010 2009Current year (5,451) (5,191)Utilisation of / (addition to) not capitalised compensable losses (794) 522Adjustments for prior years 1,756 322Current tax income (expense) (4,489) (4,347)Origination and reversal of temporary differences 853 2,004Changes in tax rate 1,244 16Benefi t from tax losses recognised 3,492 3,545Deferred tax income (expense) 5,589 5,565Total income tax recognised in the income statement 1,100 1,218Total income tax recognised in the income statement was positively affected by signifi cant one-off tax benefi ts for a totalamount of € 2.9 million, including liquidation losses related to the closure of foreign operations. In addition the retroactiveapplication of a fi scal facility in the Netherlands for tax reduction to stimulate R&D activities for the years 2007-2009 had apositive effect on the income tax recognised. Further an addition to the tax provision for identifi ed tax exposures in the Groupwas included. Finally the reduction of the corporate income tax rate in the Netherlands from 25.5% to 25% as per January2011 resulted in a release of the deferred tax liabilities of € 1.1 million.In addition losses incurred in some emerging markets for which no tax recovery was taken into account were partlycompensated by the utilisation of some non-capitalised tax losses carried forward.Recognised in other comprehensive income(€ x 1,000) 2010 2009*BEFORE TAXTAX (EXPENSE)BENEFITNET OF TAX BEFORE TAX TAX (EXPENSE)BENEFITNET OF TAXExchange differences on translating foreign operations 12,231 – 12,231 9,532 – 9,532Fair value changes fi nancial instruments 2,014 (485) 1,529 (5,224) 1,329 (3,895)Transfer hedge reserve to profi t or loss – – – 3,272 (834) 2,438Total 14,245 (485) 13,760 7,580 495 8,075* Presentation adjusted for comparison reasons.