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Rothschild & Co | Annual Report 2017
153
1. Overview
4. Financial statements
3.
Management report
2. Business review
Deferred tax net assets are attributable to the following items:
In thousands of euro
31/12/2017 31/03/2017
Deferred profit share arrangements
22,599
26,213
Losses carried forward
12,171
13,954
Defined benefit pension liabilities
10,300
18,074
Provisions
6,803
2,968
Accelerated depreciation
2,973
3,971
Available-for-sale financial assets
116
(311)
Other temporary differences
5,599
3,097
TOTAL
60,561
67,966
The majority of the Group’s deferred tax assets are in NMR, a UK subsidiary. For these financial statements, NMR considers that there will be sufficient
profits within eight years to utilise deferred tax assets that remain recognised on its balance sheet.
NMR derecognised €8.7 million of deferred tax assets during the year ended March 2015, after the UK government announced restrictions on the ability
of banks to utilise historic tax losses. Elsewhere in the Group, in accordance with the Group’s accounting policy, some deductible temporary differences
have not given rise to the recognition of deferred tax assets, mainly in the United States, Canada and Asia. Unrecognised deferred tax assets amounted to
€56.7 million at 31 December 2017 (€72.9 million at 31 March 2017).
Deferred tax net liabilities are attributable to the following items:
In thousands of euro
31/12/2017 31/03/2017
Fair value adjustments to properties
17,340
17,772
Available-for-sale financial assets
18,445
19,277
Intangible assets recognised following acquisition of subsidiaries
13,674
14,520
Defined benefit pension assets
1,911
3,946
Accelerated capital allowances
1,956
2,224
Other temporary differences
7,609
8,590
TOTAL
60,935
66,329
Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to set-off and the balance relates to income tax levied by the
same tax authority on the same taxable entity or tax group. There must also be the intention and the will to settle on a net basis or to realise the assets and
liabilities simultaneously.
The deferred tax (expense)/income in the income statement comprises the following temporary differences:
In thousands of euro
31/12/2017 31/03/2017
Defined benefit pension liabilities
(2,041)
(5,540)
Deferred profit share arrangements
(3,182)
1,118
Depreciation differences
(631)
(2,520)
Available-for-sale financial assets
467
(743)
Allowances for loan losses
4,120
(344)
Tax losses carried forward
(405)
(1,004)
Other temporary differences
3,185
2,485
TOTAL
1,513
(6,548)