DHL 2010 Annual Report Download - page 170

torical experience and expectations with regard to future events that
appear reasonable under the given circumstances. For example, this
applies to assets held for sale. In this case, it must be determined
whether the assets are available for sale in their present condition
and whether their sale is highly probable. If this is the case, the
assets and the associated liabilities are reported and measured as
assets held for sale and liabilities associated with assets held for sale.
Estimates and assessments made by management
 e preparation of the consolidated  nancial statements in
accordance with  s requires assumptions and estimates to be
made that a ect the amounts of the assets and liabilities included
in the balance sheet, the amounts of income and expenses, and the
disclosures relating to contingent liabilities.
Amongst other things, these assumptions relate to the rec-
ognition and measurement of provisions. When determining the
provisions for pensions and similar obligations, the discount rate
used is an important factor that has to be estimated. An increase
or a reduction of one percentage point in the discount rate used
would result in a reduction or increase of around   million in
the pension obligations of pension plans in Germany. A similar
change in the discount rate used to measure the pension obliga-
tions of the Group companies in the  would result in a reduction
or increase of around   million. Since actuarial gains and losses
are only recognised if they exceed   of the higher of the de ned
bene t obligation and the fair value of the plan assets, changes in
the discount rate used for the Group’s bene t plans generally have
little or no e ect on the expense or the carrying amount of the pro-
visions recognised in the following  nancial year.
 e Group has operating activities around the globe and
is subject to local tax laws. Management can exercise judgement
when calculating the amounts of current and deferred taxes in the
relevant countries. Although management believes that it has made
a reasonable estimate relating to tax matters that are inherently un-
certain, there can be no guarantee that the actual outcome of these
uncertain tax matters will correspond exactly to the original esti-
mate made. Any di erence between actual events and the estimate
made could have an e ect on tax liabilities and deferred taxes in
the period in which the matter is  nally decided.  e amount rec-
ognised for deferred tax assets could be reduced if the estimates of
planned taxable income or the tax bene ts achievable as a result of
tax planning strategies are revised downwards, or in the event that
changes to current tax laws restrict the extent to which future tax
bene ts can be realised.
Deferred taxes
In accordance with  , deferred taxes are recognised for
temporary di erences between the carrying amounts in the 
 nancial statements and the tax accounts of the individual enti-
ties. Deferred tax assets also include tax reduction claims which
arise from the expected future utilisation of existing tax loss carry-
forwards and which are likely to be realised. In compliance with
 . (b) and  . (b), deferred tax assets or liabilities were
only recognised for temporary di erences between the carrying
amounts in the   nancial statements and in the tax accounts of
Deutsche Post  where the di erences arose a er  January .
No deferred tax assets or liabilities are recognised for temporary
di erences resulting from initial di erences in the opening tax
accounts of Deutsche Post  as at  January . Further details
on deferred taxes from tax loss carryforwards can be found in
Note .
In accordance with  , deferred tax assets and liabili-
ties are calculated using the tax rates applicable in the individual
countries at the balance sheet date or announced for the time when
the deferred tax assets and liabilities are realised.  e tax rate of
.  applied to German Group companies comprises the corpo-
ration tax rate plus the solidarity surcharge, as well as a munici-
pal trade tax rate that is calculated as the average of the di erent
municipal trade tax rates. Foreign Group companies use their indi-
vidual income tax rates to calculate deferred tax items.  e income
tax rates applied for foreign companies amount to up to  .
Income taxes
Income tax assets and liabilities are measured at the amounts
for which repayments from or payments to the tax authorities are
expected to be received or made.
Contingent liabilities
Contingent liabilities represent possible obligations whose ex-
istence will be con rmed only by the occurrence or non- occurrence
of one or more uncertain future events not wholly within the con-
trol of the enterprise. Contingent liabilities also include certain
obligations that will probably not lead to an out ow of resources
embodying economic bene ts, or where the amount of the out ow
of resources embodying economic bene ts cannot be measured
with su cient reliability. In accordance with  , contingent
liabilities are not recognised as liabilities; see Note .
 Exercise of judgement in applying the accounting policies
 e preparation of -compliant consolidated  nancial
statements requires the exercise of judgement by management. All
estimates are reassessed on an ongoing basis and are based on his-
Deutsche Post DHL Annual Report 
156