2009 Reference document - Solvay

6 Financial
158
Financial and Accounting Information
Statements
NOTE 18 DEFERRED TAX ASSETS AND LIABILITIES
The deferred taxes recognized as non-current assets or liabilities break down as follows:
(in millions of euros) 2009 2008
Deferred tax assets 170 171
Less than one year 22 17
More than one year 148 154
Deferred tax liabilities (28) (38)
Less than one year (11) (12)
More than one year (17) (26)
The deferred taxes shown on the face of the balance sheet arise from:
Reference Document Rhodia 2009
Assets Liabilities Net
(in millions of euros)
Differences between carrying and tax amounts of:
2009 2008 2009 2008 2009 2008
• assets 12 7 (82) (68) (70) (61)
• retirement obligations 52 53 - - 52 53
• provisions 94 84 (10) (6) 84 78
• derivatives - 4 (9) (4) (9) -
• other items 22 26 (27) (35) (5) (9)
Tax loss carryforwards and tax credits 90 72 - - 90 72
Deferred taxes 270 246 (128) (113) 142 133
Netting effect (100) (75) 100 75 - -
Net deferred taxes 170 171 (28) (38) 142 133
At December 31, 2009, unrecognized deferred tax assets amount
to €1,466 million and break down as follows:
1 €936 million in tax loss carryforwards (€869 million at
December 31, 2008), of which €865 million in losses that may
be carried forward indefinitely in respect of French and British
tax consolidation groups;
1 €75 million in non-ordinary tax losses that may only be offset
against disposals of assets;
1 €455 million generated by the differences in carrying and tax
amounts of assets and liabilities.
At each period-end, Rhodia determines whether each tax entity is
likely to generate taxable profits against which its deferred tax assets
may be offset or to benefit from unrecognized available tax credits.
To assess this probability, Rhodia considers in particular current and
past results of the tax entities as well as projected taxable profits.
In the event of recent losses not relating to non-recurring items,
Rhodia considers whether the entities are presumed not to have
future taxable profits available to reverse such tax assets or credits.
This analysis led the Group not to recognize net deferred tax assets
for the French and British tax groups.