ANNUAL REPORT 2011 - Kuehne + Nagel

70
Consolidated Financial Statements 2011 _ _ _ _ _ _ Accounting Policies
18 Income taxes
Income tax on earnings for the year comprises current and
deferred tax. Both current and deferred tax are recognised in the
income statement, except to the extent that the tax relates to
business combinations or items recognised directly in equity or
in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable
income or loss for the year, using tax rates enacted or substantially
enacted at the balance sheet date and any adjustment
to tax payable for previous years.
Deferred tax is recognised based on the balance sheet liability
method, on temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and their tax base. The following temporary differences are not
accounted for: Initial recognition of goodwill, initial recognition
of assets or liabilities that affects neither accounting nor taxable
profit, and differences relating to investments in subsidiaries
to the extent that they will probably not reverse in the
foreseeable future. The amount of deferred tax recognised is
based on the expected manner of realisation or settlement of
the carrying amount of assets and liabilities, using tax rates
enacted or substantially enacted at the balance sheet date.
A deferred tax asset in respect of temporary differences or
unused tax losses is recognised only to the extent it is probable
that future taxable profits will be available against which the
asset can be utilised. Deferred tax assets are reduced to the
extent it is no longer probable that the related tax benefit will
be realised.
19 Non-current assets held for sale
and discontinued operations
Non-current assets (or disposal groups) are classified as held for
sale if their carrying amount will be recovered principally
through a sale transaction rather than from continuing use. The
asset (or disposal group) must be available for immediate sale
in its present condition and the sale must be highly probable.
Immediately before classification as held for sale, the measurement
of the assets (and all assets and liabilities in a disposal
group) is updated in accordance with applicable IFRS. Then,
on initial classification as held for sale, non-current assets and
disposal groups are recognised at the lower of carrying amount
and fair value less costs to sell. Impairment losses on initial
classification as held for sale are included in the income
statement. Intangible assets and property, plant and equipment
once classified as held for sale are not amortised or
depreciated.
A discontinued operation is a component of the Group’s business
that represents a separate major line of business or geographical
area of operations, or is a company acquired exclusively
with a view to resale. Classification as a discontinued
operation occurs upon disposal or, if earlier, when the operation
meets the criteria to be classified as held for sale.