2023 Consolidated Financial Statements and Notes
AIR CANADA
2023 Consolidated Financial Statements and Notes
January 1,
2022
(Canadian dollars in millions)
2022 income
statement
movement
2022 OCI
movement
December 31, 2022
Non-capital losses
1,502
$
191 $
$
1,693
Accounting provisions not currently
deductible for tax
6
1
Lease liabilities
978
(44)
7
934
Maintenance provisions
215
(215)
Post-employment obligations - pension
(593)
32
138
(423)
Property, equipment, technology-based
and other intangible assets
(2,030)
(73)
(2,103)
Indefinite-lived intangible assets
(73)
(73)
Other deferred tax liabilities
(39)
(21)
(60)
Total recognized deferred income tax
assets (liabilities)
(34)
$
(129)
$
138
$
(25)
At December 31, 2023, the Corporation has deductible temporary differences of an operating and a capital nature for
which no deferred income tax asset has been recognized at this time as the ability to utilize these tax attributes is limited
to future taxable income and capital gains. Net capital losses do not have an expiry date.
The following are the temporary differences and tax loss carryforwards for which no deferred income tax assets could
be recognized:
(Canadian dollars in millions)
2023
2022
Unrecognized non-capital losses carryforwards
$
1,507
$
3,820
Post-employment obligations - other employee future benefits
1,104
1,009
Accounting provisions not currently deductible for tax
427
307
Maintenance provision
1,414
1,388
Deferred revenue
754
933
Unrecognized net capital losses carryforwards
131
118
Unrealized foreign exchange losses
202
309
Total unrecognized net temporary differences
$
5,539
$
7,884
Deferred income tax rate based on combined federal and provincial rates
26.45%
26.45%
$
1,465
$
2,085
Unrecognized recoverable taxes
39
38
Total unrecognized net deferred income tax assets
$
1,504
$
2,123
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