DHL 2008 Annual Report Download - page 155

Deutsche Post World Net Annual Report 2008
Consolidated Financial Statements
Notes
17 Net income from associates
Investments in companies on which a significant influ-
ence can be exercised and which are accounted for using the equity
method contributed   million (previous year:   million) to net
 nance costs.
18 Net other fi nance costs
€ m 2007 2008
restated 1)
Financial income
Interest income 69 576
Income from other equity investments
and fi nancial instruments 14 15
Income from currency translation differences 13 23
Other fi nancial income 7 7
103 621
Finance costs
Interest expenses – 986 – 1,064
of which interest cost on discounted provisions
for pensions and other provisions – 652 – 690
Cost of loss absorption – 1 0
Write-downs on fi nancial instruments – 2 – 30
Expenses from currency translation differences – 57 – 8
Other fi nance costs – 5 – 20
– 1,051 – 1,122
Net other fi nance costs – 948 – 501
1) Change in presentation of the Deutsche Postbank Group (see Notes 3 and 5).
 e increase in  nancial income re ects the interest compo-
nent of the repayment of state aid amounting to   million.
19 Income taxes
€ m 2007 2008
restated 1)
Current income tax expense – 384 – 352
Current recoverable income tax 525
– 379 – 327
Deferred tax income
from temporary differences 201 140
Deferred tax expense (previous year: tax income)
from the reduction in deferred tax assets from tax
loss carryforwards 5– 13
206 127
Income tax expense – 173 – 200
1) Change in presentation of the Deutsche Postbank Group (see Notes 3 and 5).
Despite the decline in the pro t from continuing operations,
which was due mainly to the restructuring expenses in the , there
was no e ect on the tax expense because little or no income tax was
paid as a result of the loss generated, and no deferred tax assets were
recognised in respect of the resulting tax loss carryforwards.
 e reconciliation to the e ective income tax expense is
shown below, based on consolidated net pro t before income taxes
and the expected income tax expense:
Reconciliation to effective income tax expense
€ m 2007 2008
restated 1)
Profi t / loss from continuing operations
before income taxes 1,188 – 1,066
Expected income tax expense 474 – 318
Deferred tax assets not recognised
for initial differences – 735 – 420
Deferred tax assets of German Group companies
not recognised for tax loss carryforwards and
temporary differences 346 469
Deferred tax assets of foreign Group companies
not recognised for tax loss carryforwards and
temporary differences 98 424
Changes in tax rates at German Group companies 18 0
Effect of current taxes from previous years – 9 – 45
Tax-exempt income and non-deductible expenses 67 118
Differences in tax rates at foreign companies – 86 – 30
Other 0 2
Effective income tax expense
from continuing operations 173 200
1) Change in presentation of the Deutsche Postbank Group (see Notes 3 and 5).
 e di erence between the expected and the e ective income
tax expense is due in particular to temporary di erences between
the carrying amounts in the   nancial statements and in the
tax accounts of Deutsche Post  resulting from initial di erences
in the opening tax accounts as at  January . In accordance
with  . (b) and  . (b), the Group did not recognise
any deferred tax assets on these temporary di erences, which relate
mainly to property, plant and equipment as well as to provisions for
pensions and other employee bene ts.  e remaining temporary dif-
ferences between the carrying amounts in the   nancial state-
ments and in the opening tax accounts amount to  . billion as at
 December  (previous year:  . billion).
 e e ects from deferred tax assets of German Group com-
panies not recognised on tax loss carryforwards and temporary
di erences relate primarily to Deutsche Post  and members of its
consolidated tax group. E ects from deferred tax assets of foreign
companies not recognised on tax loss carryforwards and temporary
di erences relate primarily to the Americas region.
E ects from deferred tax assets not recognised amounting
to   million (previous year:   million) were due to the reversal
of a write-down of deferred tax assets recognised in a prior period.
 e income tax expense was reduced by an amount of   million
(previous year:   million) as a result of the utilisation of tax losses
not previously re ected in the  nancial statements.
A deferred tax asset in the amount of   million was rec-
ognised in the balance sheet as, based on tax planning, realisation of
the tax asset is probable, and losses of the current period are largely
due to non-recurring items.
In  nancial year , German Group companies were not
a ected by tax rate changes. In the previous year, such changes
resulted from the  business tax reform.  e change in the tax
rate in some foreign tax jurisdictions did not lead to any signi -
cant e ects.
 e e ective income tax expense includes prior-period tax
expenses from German and foreign companies in the amount of
  million (previous year:   million).
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