Chrysler 2004 Annual Report Download - page 100

FIAT GROUP
02
98
Income taxes
Income taxes currently payable are provided for in accordance
with the existing legislation of the countries in which the
Group operates.
Deferred tax liabilities or deferred tax assets are determined
for all of the temporary differences between the consolidated
assets and liabilities and the corresponding amounts for
purposes of taxation, including those deriving from the most
significant consolidation adjustments. As allowed by the
applicable Accounting Principles, deferred tax assets are
also recorded to account for the tax benefit of tax loss
carryforwards whenever the specific conditions for future
recoverability are met.
In particular, deferred tax assets have only been recorded
if there is a reasonable certainty of their future recovery.
Deferred tax liabilities are not recorded if it is unlikely that
a future liability will arise.
Deferred tax assets and liabilities are offset if they refer to the
same company and to taxes which can be compensated. The
balance from offsetting the amounts is recorded in deferred
tax assets in current assets, if a deferred tax asset, and in the
Deferred tax reserve, if a deferred tax liability.