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CONTINGENT ASSETS
by rfi4
the availability of sufficient taxable temporary differences in the years when the deferred tax assets will reverse.
A deferred tax asset that was not accounted for or reduced in prior years, because the requirements for its recognition or retention were not met, is recorded or reinstated in the year in which those requirements are met.
The explanatory notes provide a statement of the temporary differences that led to the recognition of deferred tax assets and liabilities, specifying the rate applied and the year-onyear changes, the amounts debited or credited to the profit and loss account or equity and the items excluded from the calculation, as well as the amount of deferred tax assets recorded in the financial statements pertaining to losses for the year or previous years and the amount of taxes not yet recognised.
The total amount of commitments, guarantees and contingent liabilities not shown in the financial statements are disclosed in separate sections of these Explanatory Notes.
Commitments are obligations assumed by the Company against third parties arising from legal transactions with certain mandatory effects but not yet performed by either party. The commitments category includes both commitments of which the implementation and amount are certain and commitments of which the implementation is certain but not the amount. The amount of the liabilities is the par value that can be inferred from the relevant documentation. If the commitment cannot be quantified, this is disclosed in the Explanatory Notes.
Guarantees include both real and personal guarantees given by the Company. These guarantees are those issued by the Company in connection with its own or another party's obligation. Its value corresponds to the value of the guarantee given or, if not determined, to the best estimate of the risk assumed in the light of the situation existing at that time.
Contingent liabilities not disclosed in the financial statements include those deemed probable, but the amount of which cannot be determined other than randomly and arbitrarily, and those deemed possible. Similarly, the appropriate section indicates the potential assets and profits considered probable that have not been recognised in the financial statements for the sake of prudence.
