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17.TAXES ON INCOME
(continued)
b) Deferred Taxes (continued)
Expiration schedule of carry forward tax losses is as follows:
Movements of deferred tax balances during the years ended 31 December 2014 and 2013 are as follows:
(*) USD (41,243) (2013: USD 296,698) charge to equity is related to cash flow hedge, USD 58,685 (2013: USD 550,019) charge to equity is related to actuarial losses from Employee
Benefits Obligation and USD (25,642,293) (2013: USD (2,673,140)) charge to equity is related to revaluation of properties.
Reconciliation of taxes by applying the effective tax rates to profit before tax provision as reflected in the statement of comprehensive income for the years ended 31 December 2014
and 2013 is as follows:
31 December 2014
31 December 2013
Expiring in 2014
-
39,128
Expiring in 2015
193,993
210,773
Expiring in 2016
2,727,195
2,171,595
Expiring in 2017
5,862,061
4,816,041
Expiring in 2018
21,611,014
30,183,558
Expiring in 2019
3,290,242
-
33,684,505
37,421,095
31 December 2014
31 December 2013
Net income from ordinary activities before income tax
132,282,127
166,173,600
At statutory income tax rate at 20% (2013 – 20%)
(26,456,425)
(33,234,720)
Effect of: Disallowable expenses
(4,958,553)
(5,318,063)
Tax exempt income
7,878,739
1,825,737
Non tax deductible translation gain arising from remeasurement
(3,488,988)
(9,951,663)
Unused tax losses and tax offsets not recognised as deferred tax assets
(7,128,070)
(14,500,334)
Impairment provided for deferred tax asset
(40,919)
53,755
(34,194,216)
(61,125,288)
2014
2013
Beginning balance
(90,657,974)
(60,311,035)
Tax charge recognized in the statement of income
4,766,513
(29,302,542)
Tax credited/(charged) to equity (*)
(25,624,851)
(1,826,423)
Currency translation reserve
1,932,087
782,026
(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)