Annual Report 2011 - Skanska

Note16ContinuedTax assets and tax liabilitiesDec 31, 2011 Dec 31, 2010Tax assets 436 506Tax liabilities 263 1 003Net tax assets (+), tax liabilities (–) 173 –497Tax assets and tax liabilities refer to the difference between estimated income taxfor the year and preliminary tax paid as well as income taxes for prior years that havenot yet been settled.Deferred tax assets and deferred tax liabilitiesDec 31, 2011 Dec 31, 2010Deferred tax assets according to the statement offinancial position 1,671 1,472Deferred tax liabilities according to the statement offinancial position 927 1,637Net deferred tax assets (+), deferred tax liabilities (–) 744 –165Dec 31, 2011 Dec 31, 2010Deferred tax assets for loss carry-forwards 371 188Deferred tax assets for other assets 504 460Deferred tax assets for provisions for pensions 938 305Deferred tax assets for ongoing projects 442 530Other deferred tax assets 1,111 1,205Total before net accounting 3,366 2,688Net accounting of offset table deferred taxassets/liabilities –1,695 –1,216Deferred tax assets according to the statementof financial position 1,671 1,472Dec 31, 2011 Dec 31, 2010Deferred tax liabilities for shares and participations 7 256Deferred tax liabilities for other non-current assets 331 297Deferred tax liabilities for other current assets 427 405Deferred tax liabilities for ongoing projects 1,145 1,104Other deferred tax liabilities 712 791Total before net accounting 2,622 2,853Net accounting of offset table deferred taxassets/liabilities –1,695 –1,216Deferred tax liabilities according to the statementof financial position 927 1,637The net amount of deferred tax assets and deferred tax liabilities changed bySEK 909 M from a net liability to a net asset.Deferred tax assets other than for loss carry-forwards refer to temporary differencesbetween carrying amounts for tax purposes and carrying amounts recognizedin the statement of financial position. These differences arise, among other things,when the Group’s valuation principles diverge from those applied locally by a subsidiary.These deferred tax assets are mostly expected to be realized within five years.Deferred tax assets arise, for example, when a recognized depreciation/amortization/impairmentloss on assets becomes deductible for tax purposes only in a laterperiod, when eliminating intra-Group profits, when the provisions for definedbenefitpensions differ between local rules and IAS 19, when the required provisionsbecome tax-deductible in a later period and when advance payments to ongoingprojects are taxed on a cash basis.Deferred tax liabilities on other assets and other deferred tax liabilities refer totemporary differences between carrying amounts for tax purposes and carryingamounts in the statement of financial position. These differences arise, among otherthings, when the Group’s valuation principles diverge from those applied locally bya Group company. These deferred tax liabilities are expected to be mostly realizedwithin five years.For example, deferred tax liabilities arise when depreciation/amortization for taxpurposes in the current period is larger than the required economic depreciation/amortization and when accrued profits in ongoing projects are taxed only when theproject is completed.Temporary differences attributable to investments in Group companies, branches,associated companies and joint ventures for which deferred tax liabilities were notrecognized totaled SEK 0 M (0).In Sweden and a number of other countries, divestments of holdings in limitedcompanies are tax-exempt under certain circumstances. Temporary differences thusdo not normally exist for shareholdings by the Group’s companies in these countries.Temporary differences and loss carry-forwards that are not recognizedas deferred tax assetsDec 31, 2011 Dec 31, 2010Loss carry-forwards that expire within one year 2 0Loss carry-forwards that expire in more thanone year but within three years 188 283Loss carry-forwards that expire in more thanthree years 1,136 863Total 1,326 1,146Skanska has loss carry-forwards in a number of different countries. In some of thesecountries, Skanska currently has no operations or limited ones. In certain countries,current earnings generation is at such a level that the likelihood that a loss carryforwardcan be utilized is difficult to assess. There may also be limitations on theright to offset loss carry-forwards against income. In these cases, no deferred taxasset is reported for these loss carry-forwards.Change in net deferred tax assets (+), liabilities (–)2011 2010Net deferred tax liabilities/assets, January 1 –165 20Divestments of companies 23 61Recognized under other comprehensive income 868 –293Deferred tax benefits 91 137Exchange rate differences –73 –90Net deferred tax liabilities/assets, December 31 744 –165134 Notes, including accounting and valuation principles Skanska Annual Report 2011