2023 Consolidated Financial Statements and Notes slide image

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 48
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