IMMOEAST Annual Report 2006/07

182 IMMOEAST Annual Report 2006/07
IAS 12.15 in
connection
with IAS 12.47
IAS 12.5
IAS 12.15
IAS 12.24
IAS 12.74
IAS 1.51
IAS 37.14
3.13 Deferred taxes
Additional information on deferred taxes is provided under point 4.15.
In accordance with the balance sheet liability method required by IAS 12, deferred taxes are calculated on all temporary
differences between the carrying amount of an asset or liability in the IFRS consolidated financial statements
and its tax base in the individual company financial statements. Temporary differences are differences between the
carrying value of an asset or liability on the balance sheet and the relevant tax base. Temporary differences can be:
• taxable temporary differences, which are temporary differences that will result in taxable amounts in the determination
of taxable profit (tax loss) in future periods, when the carrying amount of the asset or liability is recovered
or settled; or
• deductible temporary differences, which are temporary differences that will result in amounts that are deductible
for the determination of taxable profit (tax loss) in future periods, when the carrying amount of the asset or liability
is recovered or settled.
A deferred tax asset or deferred tax liability must be recorded for each taxable temporary difference unless the difference
arises from the initial recognition of goodwill or the initial recognition of an assets or liability in a transaction
that:
• is not a business combination and
• at the time of the transaction, affects neither accounting profit (before tax) nor taxable profit (tax loss).
Deferred tax assets must be recognised for all tax loss carryforwards to the extent that it is probable that taxable
profit will be available against which the deductible temporary difference can be utilised.
The expected realisable tax credits from the loss carryfowards are also included in this calculation. Deferred tax
assets and deferred tax liabilities may be offset if the conditions set forth in IAS 12.74 are met:
a) the entity has a legally enforceable right to offset current tax assets against current tax liabilities, and
b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.
The calculation of deferred taxes is based on the tax rates that will apply or are expected to apply in the individual
countries at the point of realisation. The tax laws enacted or substantively enacted as of the balance sheet date are
also taken into account. The calculation of deferred taxes for Austrian companies is based on a tax rate of 25%. For
foreign companies, the relevant local tax rate is applied (see 4.15). In accordance with IAS 1.51, deferred taxes are
classified as non-current assets or non-current liabilities following the presentation of the balance sheet by term.
3.14 Provisions and other liabilities
Additional information on provisions and other liabilities is provided under points 4.12 and 4.13.
In accordance with IAS 37.14, an obligation arising from past events whose timing or amount is uncertain is recorded
as a provision when it becomes probable that an outflow of resources will be required to settle this obligation and
when the amount can be reliably estimated.