Chrysler 2010 Annual Report Download - page 184

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Deferred tax assets, net of Deferred tax liabilities may be analysed by source as follows:
Changes Translation Reclassified
At 31 Recognised in the differences to At 31
December in income Charged scope of and other Discontinued December
(€ million) 2009 statement to equity consolidation changes Operations 2010
Deferred tax assets arising from:
Taxed provisions 1,783 138 - (1) 90 (501) 1,509
Inventories 333 8 - - 6 (118) 229
Taxed allowances for doubtful accounts 202 23 - 1 16 (154) 88
Provision for employee benefits 426 (49) - - 35 (379) 33
Intangible assets 458 184 - - - (238) 404
Write-downs of financial assets 159 9 - - 2 (13) 157
Measurement of derivative financial instruments 29 - 8 - 7 (27) 17
Other 500 (53) - 14 - (267) 194
Total Deferred tax assets 3,890 260 8 14 156 (1.697) 2,631
Deferred tax liabilities arising from:
Accelerated depreciation (527) 22 - (6) (28) 273 (266)
Deferred tax on gains on disposal (2) (148) - - - - (150)
Capital investment grants (6) 2 - - - - (4)
Provision for employee benefits (22) - - - - 6 (16)
Capitalisation of development costs (910) 28 - (3) (20) 197 (708)
Other (582) 30 (5) (13) (20) 235 (355)
Total Deferred tax liabilities (2,049) (66) (5) (22) (68) 711 (1,499)
Theoretical tax benefit arising from tax loss carryforwards 3,894 (541) - 4 82 (858) 2,581
Adjustments for assets whose recoverability is not probable (3,307) 502 - 15 (65) 685 (2,170)
Total Deferred tax assets, net of Deferred tax liabilities 2,428 155 3 11 105 (1.159) 1,543
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 (€2,631 million at 31 December 2010 and €3,890 million at 31 December 2009) and tax loss
carryforwards (€2,581 million at 31 December 2010 and €3,894 million at 31 December 2009) have been reduced by €2,170 million at 31 December 2010
and €3,307 million at 31 December 2009.
In particular, at 31 December 2010 Deferred tax assets, net of Deferred tax liabilities, include tax benefits arising from unused tax losses of €1,012 million
in Continuing Operations and €303 million in Discontinued Operations; at 31 December 2009 the corresponding item for the Fiat Group as a whole was
€1,259 million. At 31 December 2010, further tax benefits arising from unused tax losses amounting to €1,569 million for Continuing Operations and
€555 million for Discontinued Operations have not been recognised. At 31 December 2009 the corresponding item for the Fiat Group as a whole was
€2,635 million.
Deferred taxes have not been provided on the undistributed earnings of subsidiaries since the Fiat Group Post-Demerger and the Fiat Industrial 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.