BMW 2009 Annual Report Download - page 95

93 Group Financial Statements
Deferred tax assets Deferred tax liabilities
in euro million 2009 2008 2009 2008
Intangible assets 1 1 1,490 1,541
Property, plant and equipment 38 43 410 454
Leased products 443 573 4,281 4,137
Investments 5 3 8 5
Other current assets 2,175 1,796 3,559 3,196
Tax loss carryforwards 1,838 1,438 – –
Provisions 1,388 1,197 47 7 5
Liabilities 3,316 2,945 1,444 1,296
Consolidations 1,564 1,736 482 406
10,768 9,732 11,721 11,110
Valuation allowance – 550 – 513 – –
Netting – 8,952 – 8,353 – 8,952 – 8,353
Deferred taxes 1,266 866 2,769 2,757
Net 1,503 1,891
“Netting” relates to the offset of deferred tax assets and
liabilities within individual separate entities or tax groups.
Deferred tax assets on tax losses available for carryforward
and on capital losses increased on a net basis. Tax losses
available for carryforward, which for the most part can be
carried forward without restriction, totalled euro 5.2 billion
at the end of the reporting period (2008: euro 3.8 billion).
A valuation allowance of euro 31 million (2008: euro 30 mil-
lion) was recognised in 2009 on deferred tax assets relat-
ing to tax losses available for carryforward. Capital losses in
the United Kingdom increased in 2009 to euro 1.9 billion
(2008: euro 1.7 billion) as a result of exchange rate factors.
As in previous years, deferred tax assets recognised on
these tax losses – amounting to euro 519 million at the end
of the reporting period (2008: euro 483 million) – were fully
written down since they can only be utilised against future
capital gains. Capital losses are not connected to ongoing
business operations. Deferred tax assets were recognised
in 2009 for entities which recorded tax losses in either 2009
or 2008. These deferred tax assets exceed deferred tax
liabilities by euro 618 million (2008: euro 185 million). De-
ferred tax assets are recognised on the basis of manage-
ment’s assessment of whether it is probable that the rele-
vant entities will generate sufficient taxable profits against
which deductible temporary differences can be offset.
Deferred taxes recognised directly in equity amounted to
euro 493 million (2008: euro 303 million), an increase of
euro 190 million (2008: euro 188 million) compared to the
previous year. The change also includes a euro 12 million
(2008: euro 39 million) reduction in deferred taxes arising
on foreign currency translation.
Changes in net deferred tax assets and liabilities during the
reporting period can be summarised as follows:
in euro million 2009 2008
Net deferred tax liabilities at 1 January 1,891 1,994
Deferred tax expenses recognised through income statement –135 – 54
Change in deferred taxes recognised directly in equity – 202 – 227
Exchange rate impact and other changes* – 51 178
Net deferred tax liabilities at 31 December 1,503 1,891
* including impact of first-time consolidation and deconsolidation