ING Direct 2008 Annual Report Download - page 136

ING Group Annual Report 2008
134
2.1 Consolidated annual accounts
Notes to the consolidated balance sheet of ING Group (continued)
Deferred tax in connection with unused tax losses carried forward
2008 2007
Total unused tax losses carried forward 6,392 3,814
Unused tax losses carried forward not recognised
as a deferred tax asset –638 –688
Unused tax losses carried forward recognised as a
deferred tax asset 5,754 3,126
Average tax rate 28.7% 29.8%
Deferred tax asset 1,653 932
The following tax loss carry forwards and tax credits will expire as follows as at 31 December:
Total unused tax losses carried forward analysed by expiry terms
No deferred tax asset recognised Deferred tax asset recognised
2008 2007 2008 2007
Within 1 year 264 56 41
More than 1 year but less than 5 years 68 176 425 249
More than 5 years but less than 10 years 219 230 2,802 610
More than 10 years but less than 20 years 298 71 1,540 1,010
Unlimited 51 147 931 1,216
638 688 5,754 3,126
Deferred income tax assets are recognised for tax loss carry forwards and unused tax credits only to the extent that realisation of the
related tax benefit is probable. Changes in circumstances in future periods may adversely impact the assessment of recoverability. The
uncertainty of the recoverability of the tax losses and tax credits is taken into account in establishing the deferred tax assets.
Changes in reorganisation provision
2008 2007
Opening balance 619 335
Changes in the composition of the group –22
Additions 162 507
Interest 15 9
Releases –18 –62
Charges –169 –175
Exchange rate differences –6 –3
Other changes 28
Closing balance 583 619
The provision for reorganisations as at 31 December 2008 includes EUR 360 million for the restructuring of the retail business
of Postbank and ING Bank.
The provision for reorganisations as at 31 December 2007 includes EUR 252 million for the restructuring of the retail business of Postbank
and ING Bank and EUR 100 million for the global wholesale restructuring. The remaining term of the provision for reorganisations is
generally not more than five years.
Changes in other provisions
Litigation Other Total
2008 2007 2008 2007 2008 2007
Opening balance 229 189 552 531 781 720
Changes in the composition of the group –1 13 847 760
Additions 202 34 313 325 515 359
Releases –6 –149 –6 –149
Charges –28 –24 –279 –195 –307 –219
Exchange rate differences –6 1–15 –8 –21 –7
Other changes –25 16 25 1 17
Closing balance 371 229 598 552 969 781