Integrated report 2021

14. Deferred tax in statement of financial position

ACCOUNTING RULES

Deferred income tax

In connection with temporary differences between the reported value of assets and liabilities in the books and their tax value and tax loss deductible in the future, the Group establishes deferred tax liabilities and assets.

A deferred tax liability is recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised.

The Group separately recognises deferred tax assets for deductible temporary differences on lease liabilities recognised in connection with the enactment of IFRS 16 and deferred tax liabilities for taxable temporary differences to right-of-use assets.

The current carrying amount of deferred tax assets and liabilities is reviewed at each reporting date. Deferred tax assets and deferred tax liabilities are classified as long-term. The Group offsets deferred tax assets and liabilities at the level of the tax group and at the level of individual PGE Group companies.

14.1 Deferred income tax assets

14.2 Deferred tax liabilities

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