Compagnie des Alpes - 2017 Registration Document
5 FINANCIAL INFORMATION
Consolidated financial statements
5.4
BORROWING COST AND OTHER FINANCIAL INCOME AND EXPENSES
30/09/2017
30/09/2016
(in thousands of euros)
Interest on borrowings
-16,270
-15,690
Other financial income and expenses Income on cash and cash equivalents
-
-428
130
94
NET COST OF DEBT
-16,140
-16,024
Losses on financial transactions
-747 -196
-617 -392
Other financial income
Financial provisions/reversals
-2,082 -3,025
-2,276 -3,286
OTHER FINANCIAL INCOME AND EXPENSES
5.5 INCOME TAX EXPENSE Income tax expense breaks down as follows:
30/09/2017
30/09/2016
(in thousands of euros)
Current taxes Deferred taxes
-19,637
-17,891
-300
-314
TOTAL
-19,937
-18,205
The reconciliation between the standard tax rate in France and the effective tax rate is outlined below (the effective tax rate is the ratio of income tax to net income of consolidated companies, including income
from discontinued operations included in the tax consolidation, but before tax and adjustments for goodwill impairment losses).
The reconciliation between income tax and the pre-tax income of consolidated companies is shown below:
30/09/2017
30/09/2016
NET INCOME BEFORE TAX
59,838 33.33% 19,946
58,527 33.33% 19,509
Current tax rate
Theoretical tax expense
Effects of: Difference between actual tax rate and theoretical rate
4,674
1,175
Non-deductible expenses/non-taxable income
-5,070
637
Interim tax losses on sold companies not recognised in assets
408
-
Other tax loss carryforwards not recognised in assets
4,153
1,397
Activation of losses from previous years
-2,608 -1,566 19,937
-2,920 -1,592 18,205
Income from associate companies recognised net of tax
TOTAL INCOME-TAX EXPENSE
The Group recognised an income of €2.3 million stemming from the removal of tax on dividends and the reversal of a tax provision of €1.8 million on a dispute with a foreign tax authority (which originated prior to the acquisition by Compagnie des Alpes), which turned out in favour of the Group. These items are included in the line, “Non- deductible expenses/non-taxable income”. The impairment on property, plant and equipment of the Prague and Seoul sites are taken into account in the tax loss carryforwards not
recognised in assets of these companies, at the locally applicable tax rate. The differences in the tax rate compared to the tax rate applicable in France can be found in the line, “Difference in tax rate”. Tax loss carryforwards and indefinitely deferred depreciation for which no deferred tax was recognised stood at €34.4 million at 30 September 2017 (of which €26 million relate to foreign subsidiaries) and equate to a deferred tax asset of €8.1 million.
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Compagnie des Alpes I 2017 Registration Document
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