DSV Annual Report 2022 slide image

DSV Annual Report 2022

75 DSV Annual Report 2022 Consolidated financial statements 2022 = III 5.2 Deferred tax Accounting policies Deferred tax is recognised based on temporary differences between the carrying amount and the tax value of assets and liabilities. No recognition is made of deferred tax on temporary differences relating to amortisation or depreciation of goodwill, properties and other items if disallowed for tax purposes, except at the acquisition of enterprises, if such temporary differ- ences arose on the date of acquisition without affecting the results or the taxable income. In cases where it is possible to calculate the tax value ac- cording to different taxation rules, deferred tax is measured on the basis of the planned use of the asset or the settlement of the liability. Deferred tax assets, including the tax base of tax loss carryforwards, are recognised as other non-current assets at the expected value of their utili- sation, either by elimination in tax on future earnings or by offsetting de- ferred tax liabilities within the same legal tax entity and jurisdiction. Deferred tax assets and tax liabilities are offset if the enterprise has a legally enforceable right to set off current tax liabilities and tax assets or intends either to settle current tax liabilities and tax assets on a net basis or to realise the assets and liabilities simultaneously. Deferred tax is adjusted for elimination of unrealised intra-group gains and losses. Deferred tax is measured on the basis of the tax rules and tax rates of the relevant countries that will be effective under current legislation at the reporting date on which the deferred tax is expected to materialise as current tax. Management judgements and estimates Management applies significant estimates when recognising and measuring deferred tax assets and uncertain tax positions. Deferred tax assets, including the tax base of tax loss carryforwards, are recognised if it is assessed that there will be sufficient future taxable in- come against which the temporary differences and unutilised tax losses can be utilised. This assessment is based on budgets and business plans for the following years, including planned business initiatives. Deferred tax assets are tested annually and are only recognised if it is probable that future taxa- ble profit will allow the deferred tax asset to be recovered. Uncertain tax positions include ongoing disputes with tax authorities and have been provided for in accordance with the accounting policies. Man- agement believes that the provisions made are adequate. The actual obliga- tions may deviate as they depend on the result of litigations and settlements with the relevant tax authorities. Deferred tax recognised in the balance sheet (DKKm) Deferred tax at 1 January Deferred tax for the year 2022 3,097 2021 2,293 302 220 Tax adjustment relating to previous years (74) (337) (430) 675 Additions from business combinations 79 456 Currency translation 36 (47) Other adjustments (20) (163) Deferred tax at 31 December 2,990 3,097 Tax on changes in equity Deferred tax not recognised in the balance sheet (DKKm) Temporary differences Tax loss carryforwards Total tax assets not recognised 2022 2021 29 (58) 853 1,220 882 1,162 Of not recognised tax loss carryforwards, DKK 574 million (2021: DKK 795 million) may be carried forward indefinitely.
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