Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6.3 Deferred tax The net change in deferred tax assets and liabilities breaks down as follows:

2022

2021

In millions of euros

Deferred tax assets at 1January

546

475

Deferred tax liabilities at 1January

15

22

Net deferred tax assets at 1January

531

453

Income statement impact

59

14

Scope impact

-

-

Exchange rate impact

(2)

15

Equity impact

(53)

49

Net deferred tax assets at 31December

535

531

Deferred tax assets at 31December

555

546

Deferred tax liabilities at 31December

20

15

The impact on equity mainly concerns the change in deferred taxes related to:

revaluations recognised in equity (investments and financial investments and hedging of future cash flows); s actuarial gains and losses on employee benefit obligations; s the application of the IFRIC decision on software in SaaS mode (see note 1.2). s

These movements had no impact on net income for the year (see note 11.5). Deferred taxes mainly relate to the following adjustments:

31/12/2022

31/12/2021

In millions of euros

5

Internal margins on inventories and provisions for inventories

354

325

Impairment or non‑deductible depreciation and amortisation on fixed assets

57

35

Restatement for IFRS 16

56

51

Retirement and other employee benefit obligations

48

61

Derivatives

(27)

19

Regulated provisions

(28)

(17)

Other

74

58

TOTAL

535

531

Deferred tax assets linked to tax loss carry‑forwards were not material as at 31December 2022 and 2021. As at 31December 2022, tax loss carry‑forwards that did not lead to the recognition of deferred tax assets represented potential tax savings of €36 million (compared with €40 million in 2021).

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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