Chrysler 2009 Annual Report Download - page 166

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Deferred tax assets, net of Deferred tax liabilities may be analysed by source as follows:
Translation
At 31 Recognised Changes in differences At 31
December in income Charged the scope of and other December
(€ million) 2008 statement to equity consolidation changes 2009
Deferred tax assets arising from:
Taxed provisions 1,511 185 - - 87 1,783
Inventories 245 87 - - 1 333
Taxed allowances for doubtful accounts 149 42 - - 11 202
Employee benefits 409 18 - - (1) 426
Intangible assets 418 40 - - - 458
Write-downs of financial assets 218 (54) - (5) - 159
Measurement of derivative financial instruments 188 (129) (40) - 10 29
Other 508 (18) 1 (2) 11 500
Total Deferred tax assets 3,646 171 (39) (7) 119 3,890
Deferred tax liabilities arising from:
Accelerated depreciation (679) 166 - - (14) (527)
Deferred tax on gains on disposal (6) 4 - - - (2)
Capital investment grants (10) 4 - - - (6)
Employee benefits (30) 13 - - (5) (22)
Capitalisation of development costs (826) (63) - - (21) (910)
Other (659) 108 (14) 3 (20) (582)
Total Deferred tax liabilities (2,210) 232 (14) 3 (60) (2,049)
Theoretical tax benefit arising from tax loss carryforwards 3,679 184 - (27) 58 3,894
Adjustments for assets whose recoverability is not probable (2,899) (400) (1) 32 (39) (3,307)
Total Deferred tax assets, net of Deferred tax liabilities 2,216 187 (54) 1 78 2,428
The decision to recognise Deferred tax assets is taken for each company in the Group by assessing critically whether the conditions exist for the future
recoverability of such assets on the basis of updated strategic plans, accompanied by the related tax plans. For this reason, the total theoretical future
tax benefits arising from deductible temporary differences (€3,890 million at 31 December 2009 and฀€3,646 million at 31 December 2008) and tax loss
carryforwards (€3,894 million at 31 December 2009 and฀€3,679 million at 31 December 2008) have been reduced by฀€3,307 million at 31 December 2009
and฀€2,899 million at 31 December 2008.
In particular, Deferred tax assets, net of Deferred tax liabilities, include฀€1,259 million at 31 December 2009 (€1,231 million at 31 December 2008) of tax
benefits arising from tax loss carryforwards. At 31 December 2009, a further tax benefit of฀€ 2,635 million (€2,448 million at 31 December 2008) arising from
tax loss carryforwards has not been recognised.
Deferred taxes have not been provided on the undistributed earnings of subsidiaries since the Group is able to control the timing of the distribution of these
reserves and it is probable that they will not be distributed in the foreseeable future.