Unilever 2005 Annual Report Download - page 107

104 Unilever Annual Report and Accounts 2005
Notes to the consolidated accounts
Unilever Group
14 Deferred taxation
€ million € million € million € million € million € million
As at 31 IFRS Acquisitions As at 31
December transition Income and December
Movements during the year 2004 IAS 32/39 statement(a) Equity(b) disposals 2005
Pensions and similar obligations 1 391 – (98) 186 (1) 1 478
Provisions 533 – (124) 109 – 518
Goodwill and intangible assets (657) – 75 (104) – (686)
Accelerated tax depreciation (691) – (23) (38) 10 (742)
Tax losses 113 – 5 28 – 146
Fair value gains ––––––
Fair value losses – 4 (3) (1) – –
Share-based payments 46 – 17 11 – 74
Other (33) – 14 – 1 (18)
702 4 (137) 191 10 770
(a) Includes €8 million credit reported under discontinued operations in the income statement.
(b) Of the total movement in equity of €191 million, €108 million arises as a result of currency retranslation.
At the balance sheet date, the Group has unused tax losses of €1 205 million and tax credits amounting to €327 million available for offset
against future taxable profits. Deferred tax assets totalling €655 million have not been recognised in respect of these losses and credits, as the
likelihood of future economic benefit is not considered probable.
At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which
deferred tax liabilities have not been recognised was €765 million (2004: €503 million). No liability has been recognised in respect of these
differences because the Group is in a position to control the timing of the reversal of the temporary differences, and it is probable that such
differences will not reverse in the forseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when the deferred income taxes relate to the same fiscal authority. The following amounts, determined after appropriate
offsetting, are shown in the consolidated balance sheet:
€ million € million € million € million € million € million
Assets Assets Liabilities Liabilities Total Total
Deferred tax assets and liabilities 2005 2004 2005 2004 2005 2004
Pensions and similar obligations 1 709 1 484 (231) (93) 1 478 1 391
Provisions 704 617 (186) (84) 518 533
Goodwill and intangible assets (431) (353) (255) (304) (686) (657)
Accelerated tax depreciation (489) (382) (253) (309) (742) (691)
Tax losses 144 109 24146 113
Fair value gains ––––––
Fair value losses 6–(6) –––
Share-based payments 74 46 ––74 46
Other (14) (30) (4) (3) (18) (33)
1 703 1 491 (933) (789) 770 702
Of which deferred tax to be recovered/(settled) after
more than 12 months 1 269 1 135 (834) (745) 435 390
15 Inventories
€ million € million
Inventories 2005 2004
Raw materials and consumables 1 512 1 388
Finished goods and goods for resale 2 595 2 368
4 107 3 756
Inventories with a value of €123 million (2004: €109 million) are carried at fair value less costs to sell, this being lower than cost. During 2005,
€159 million (2004: €162 million) was charged to the income statement for damaged, obsolete and lost inventories. In 2005, €35 million
(2004: €25 million) was released to the income statement from inventory provisions taken in earlier years but no longer required.
Inventories with a carrying amount of €8 million (2004: €28 million) have been pledged as security for certain of the Group’s borrowings.