Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Income tax 7.

Income tax expense for the ژ year includes current taxes and deferred taxes. Current tax is (i) the estimated amount of tax due in respect of taxable profit for a given period, as determined using tax rates that have been enacted or substantively enacted at the end of the reporting period, (ii) any adjustments to the amount of current tax in previous periods, and (iii) any other tax calculated on a net amount of income and expenses. Deferred taxes are accounted for using the liability method for all temporary differences between the carrying amount recorded in the consolidated statement of financial position and the tax bases of assets and liabilities, except for non-tax deductible goodwill. Deferred taxes are

determined based on the way in which the Group expects to recover or pay the carrying amount of the assets and liabilities using the tax rates that have been enacted or substantially enacted at the reporting date. Deferred tax assets and liabilities are not discounted and are offset when they relate to the same tax entity. They are classified in the statement of financial position as non-current assets and liabilities. Deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available against which deductible temporary differences or tax losses and tax credit carryforwards can be utilised.

Recognition of current and deferred taxes 7.1.

Notes

2019 2018 restated*

in € ڳ millions

(19.6)

(25.1)

Current tax

16

1.1

1.7

Movements in tax provisions

7.2

(3.8)

2.6

Deferred tax

Total

(22.3)

(20.8)

Following the application of IFRS ژ 5 (see 2.2.5.). * ژ

Effective tax rate

2019 2018 restated*

in € ڳ millions

80.2

71.2

Profit before tax on continuing operations

(22.3) 27.8%

(20.8) 29.2% 22.2%

Income tax on the profit of continuing operations

Effective tax rate as a percentage of profit before tax

21.2%

Effective tax rate as a percentage of profit before tax (restated)

Following the application of IFRS ژ 5 (see 2.2.5.). *

186

2019 annual report