TomTom 2008 Annual Report Download - page 72

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70 / NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
24. DEFERRED INCOME TAX
As at 31 December 2008, the Group has a deferred tax liability of €229.1 million (2007: €0.4 million). A deferred
tax asset has been recorded amounting to €33.0 million (2007: €24.4 million). The deferred tax asset and
deferred tax liability result from timing differences between the tax and accounting treatment of the amortisation
of intangible assets, tax loss carry forwards, and certain provisions.
(€ in thousands) 2008 2007
Deferred tax:
To be recovered after more than 12 months -188,035 15,551
To be recovered within 12 months -8,063 8,400
-196,098 23,951
The movement of the deferred tax is as follows:
Stock
Deferred tax compensation Intangible Assessed
(€ in thousands) expense Other assets Provisions losses Total
Balance as at 31 December 2006 6,085 0 -120 5,134 0 11,099
Charged / (released) to income 8,364 0 1,018 3,470 0 12,852
Balance as at 31 December 2007 14,449 0 898 8,604 0 23,951
Charged / (released) to income -14,258 -8,991 8,471 1,750 -4,270 -17,298
Acquisition of subsidiary (note 29)10 2,078 -301,330 -2,466 94,064 -207,654
Net foreign currency exchange rate
differences 0 165 -3,756 0 8,494 4,903
Balance as at 31 December 2008 191 -6,748 -295,717 7,888 98,288 -196,098
1 In June 2008 the Group acquired Tele Atlas. Based on the purchase price allocation performed by an independent third party, the value of the
database and tools increased and new intangibles such as brand name and customer relationships were recognised, resulting in a deferred tax
liability on the increase. The deferred tax liability is netted with the Tele Atlas tax loss carry forwards which the Group expects to realise in the US.
Due to the drop in our share price the deferred tax asset related to the stock option plan has been released.
Deferred tax balances are presented in the balance sheet as follows:
(€ in thousands) 2008 2007
Deferred tax:
Deferred tax assets 32,977 24,363
Deferred tax liabilities -229,075 -412
-196,098 23,951