Audi 2007 Annual Report Download - page 198

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The following deferred tax assets and liabilities carried in the Balance Sheet are attributable
to the individual Balance Sheet items:
EUR million Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2006
Deferred tax assets Deferred tax liabilities
Intangible assets 100 127 441 608
Property, plant and equipment 199 181 175 239
Long-term investments 109 114 – 5
Inventories 49 44 39 38
Receivables and other assets 43 22 281 153
Other current assets 50 93 – 5
Provisions for pensions 113 199 – –
Other provisions 866 860 71 89
Liabilities 115 100 16 14
Loss carryforwards 10 22 – –
Gross value 1,654 1,762 1,023 1,151
of which non-current 1,096 1,183 549 748
Offsetting measures – 971 – 1,136 – 971 – 1,136
Consolidation measures – 23 10 – 47 – 8
Carrying amount 660 636 5 7
Deferred taxes are explained in detail in the recognition and measurement principles.
Reconciliation from anticipated to reported income tax expense
Anticipated tax expense is lower than the reported income tax expense. The main reason for
this was the reduction in the tax rate in Germany from 38.3 to 29.5 percent beginning in
2008. This necessitated a reduction of EUR 128 million for impairment of deferred taxes. All
effects are presented in the following reconciliation:
EUR million 2007 2006
Profit before tax 2,915 1,946
Anticipated income tax expense 38.3 % (38.3 %) 1,116 745
Reconciliation:
Divergent foreign tax burden – 96 – 84
Tax portion for:
tax-exempt income – 87 – 58
expenses not deductible for tax purposes 89 23
temporary differences and losses for which no deferred tax
has been recorded 114 64
Non-periodic tax income – 1 – 138
Effects of tax-rate changes 142 – 8
Other tax effects – 54 59
Income tax expense reported 1,223 603
Effective tax rate in % 42.0 31.0