Unilever 2006 Annual Report Download - page 96

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Unilever Annual Report and Accounts 2006 93
Financial Statements (continued)
Notes to the consolidated accounts Unilever Group
12 Deferred taxation
€million € million € million € million €million
As at 1 Acquisitions As at 31
January Income and December
Movements during the year 2006 statement(a) Equity(b) disposals 2006
Pensions and similar obligations 1 478 (344) (415) (5) 714
Provisions 666 40 (37) 23 692
Goodwill and intangible assets (834) 102 49 (1) (684)
Accelerated tax depreciation (742) 55 29 9 (649)
Tax losses 146 (36) (5) 8 113
Fair value gains – (2) 1 – (1)
Fair value losses – 7 (3) – 4
Share-based payments 74 9 11 (2) 92
Other (18) 13 (2) (11) (18)
770 (156) (372) 21 263
(a) Includes €25 million credit reported under discontinued operations in the income statement.
(b) Of the total movement in equity of €372 million, €39 million arises as a result of currency retranslation.
At the balance sheet date, the Group has unused tax losses of €1 621 million and tax credits amounting to €338 million available for offset
against future taxable profits. Deferred tax assets have not been recognised in respect of unused tax losses of €1 243 million and tax credits
of €338 million, as it is not probable that there will be future taxable profits within the entities against which the losses can be utilised. The
majority of these tax losses and credits arise in tax jurisdictions where they do not expire with the exception of €494 million of state and
federal tax losses in the USA which expire between now and 2026.
Other deductible temporary differences of €199 million have not been recognised as a deferred tax asset. There is no expiry date for these
differences.
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 €755 million (2005: €765 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 2006 2005 2006 2005 2006 2005
Pensions and similar obligations 925 1709 (211) (231) 714 1478
Provisions 670 704 22 (38) 692 666
Goodwill and intangible assets (194) (431) (490) (403) (684) (834)
Accelerated tax depreciation (328) (489) (321) (253) (649) (742)
Tax losses 112 144 12113 146
Fair value gains (1) –––(1) –
Fair value losses 46–(6) 4–
Share-based payments 92 74 ––92 74
Other (14) (14) (4) (4) (18) (18)
1266 1703 (1 003) (933) 263 770
Of which deferred tax to be recovered/(settled) after
more than 12 months 460 1269 (621) (834) (161) 435