124 / 147
129
17. TAXES ON INCOME
(continued)
b) Deferred Taxes
Deferred tax assets and liabilities are based on temporary differences arising between the financial statements as reported for IFRS purposes and the statutory tax financial statements.
Such temporary differences usually result in the recognition of income and expenses in different reporting periods for IFRS and tax purposes. Deferred taxes reflected in the consolidated
statement of financial positions are summarized as follows:
Deferred tax assets are recognized for the carry forward of unused tax losses and unused tax credits to the extent that is probable that future taxable profit will be available against which
the unused tax losses and unused tax credits can be utilized.
The breakdown of deferred tax assets/ (liabilities) as of 31 December 2014 and 2013 using the current effective tax rates, are as follows:
31 December 2014
31 December 2013
Deferred tax assets
4,224,019
1,059,146
Deferred tax liabilities
(113,808,244)
(91,717,120)
Deferred tax asset (liability), net
(109,584,225)
(90,657,974)
(*) Deferred tax asset allowance is provided for specific subsidiaries since sufficient taxable profits will not be available in the foreseeable future. Allowance on deferred tax asset mainly
arises due to tax losses amounting to USD 2,153,679 (2013: USD 1,348,730).
31 December 2014
31 December 2013
Net difference between the tax base and the carrying value of inventories
(2,893,681)
(2,931,306)
Provision for employee benefits obligation
4,828,271
5,009,646
Tax losses carried forward
6,736,901
7,484,219
Other provisions and accruals
4,609,801
2,048,344
Net difference between the tax base and the carrying value of property, plant and equipment
mainly arising from remeasurement pursuant to IAS 21
(119,869,468)
(96,439,731)
Other temporary differences
(718,150)
(3,755,841)
Total
(107,306,326)
(88,584,669)
Less: Valuation allowance for deferred tax assets (*)
(2,277,899)
(2,073,305)
Deferred tax liability
(109,584,225)
(90,657,974)
BORUSAN HOLDING A.Ş. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014
(Currency - US Dollars (“USD”) unless otherwise indicated)