Annual Report 2017

152

Rothschild & Co | Annual Report 2017

Note 14 – Provisions

In thousands of euro

01/04/2017

Charge/

(release)

Utilised

Exchange

movement

Other

movements

31/12/2017

Provisions for counterparty risk

1,071

–

(61)

(1)

(14)

995

Provisions for claims and litigation

27,230

6,152

(2,070)

(442)

30,896

Provisions for property

366

–

(33)

(25)

324

Provisions for staff costs

929

736

–

(22)

1,140

2,783

Subtotal

29,596

6,904

(2,131)

(498)

1,127

34,998

Retirement benefit liabilities (note 19)

83,948

n/a

(30,676)

53,272

TOTAL

113,544

6,904

(2,131)

(498)

(29,549)

88,270

From time to time the Group is involved in legal proceedings or receives claims arising from the conduct of its business. Based upon available information

and, where appropriate, legal advice, provisions are made where it is probable that an outflow of resources will be required and the amount can be

reliably estimated.

Also within provisions for claims and litigation are amounts set aside to cover estimated costs of other legal proceedings and claims arising from the

conduct of business.

Management believes that the level of provisions made in these financial statements continues to be sufficient for any potential or actual proceedings

or claims which are likely to have an impact on the Group’s financial statements, based on information available at the reporting date.

Note 15 – Impairments

In thousands of euro

01/04/2017

Income

statement

charge

Income

statement

reversal

Written off

Exchange rate

and other

movements

31/12/2017

Loans and advances to customers

(79,021)

(12,644)

9,847

3,718

1,177

(76,923)

Available-for-sale financial assets

(143,078)

(2,113)

1,120

9,570

339

(134,162)

Other assets

(20,773)

(3,897)

1,042

4,664

692

(18,272)

TOTAL

(242,872)

(18,654)

12,009

17,952

2,208

(229,357)

Note 16 – Deferred tax

The movement on the deferred tax account is as follows:

In thousands of euro

31/12/2017 31/03/2017

Net asset as at beginning of period

1,637

28,909

of which deferred tax assets

67,966

72,278

of which deferred tax liabilities

(66,329)

(43,369)

Recognised in income statement

Income statement credit/(charge)

1,513

(6,548)

Recognised in equity

Defined benefit pension arrangements

(2,853)

(3,321)

Available-for-sale financial assets

830

(186)

Tax losses carried forward

–

Reclassification to current tax

246

4,164

Exchange differences

(2,032)

(3,486)

Purchase/sale of a subsidiary

413

(19,913)

Other

(128)

1,995

NET ASSET AS AT END OF PERIOD

(374)

1,637

of which deferred tax assets

60,561

67,966

of which deferred tax liabilities

(60,935)

(66,329)

Notes to the consolidated financial statements