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Note 15 • Deferred taxation

Deferred tax assets and liabilities at 31 December 2010 are attributable to the items detailed in the table below:

2010

2009

€’000

Assets

Liabilities

Net

Assets

Liabilities

Net

Movement

Property, plant and equipment & intangible assets

7,299

(3,642)

3,657

8,844

(3,028)

5,816

(2,159)

Inventories

8,814

(134)

8,680

3,954

(149)

3,805

4,875

Trade and other receivables

1,097

(225)

872

370

(188)

182

690

Accruals

5,153

(30)

5,123

1,341

(6)

1,335

3,788

Other

2,925

(431)

2,494

646

(727)

(81)

2,575

Tax losses carried forward

8,242

8,242

2,032

2,032

6,210

Tax assets/(liabilities)

33,530

(4,462)

29,068

17,187

(4,098)

13,089

15,979

Translation difference

(458)

Deferred tax income

15,521

During the year the Group derecognised €0 million (€3 million) of deferred tax assets.

Recognition of deferred tax assets

Deferred tax assets, including those related to unused tax losses, are recognised to the extent that management is confident that future taxable profit will be available against which the assets can be utilised.

Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items:

€’000

2010

2009

Property, plant and equipment & intangible assets

446

1,606

Inventories

1,356

2,938

Trade and other receivables

2,036

3,803

Accruals

8,572

28,974

Other

830

1,394

Total temporary differences*

13,240

38,715

Tax losses**

135,344

142,794

Total

148,583

181,509

* The deductible temporary differences do not expire under current tax legislation.

** Of which €3 million (€3 million) expire within one year, €14.6 million (€34.3 million) expire between one and five years and 117.7 million (€105.5 million) in more than 5 years.

Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profits will be available against which the Group can utilise the benefits.



Financial Note 15 • Deferred taxation | Oriflame Annual Report 2010
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