The changes in deferred tax assets and liabilities are as follows.
(in millions of euros) | Net balance as at 1 January 2019 | recognised in income statement | recognised in other comprehensive income | other changes | Net positions as at 31 December 2019 | Deferred tax assets | Deferred tax liabilities |
Property, plant and equipment | 71 | 11 | - | 2 | 84 | 107 | 23 |
Intangible assets | -18 | -1 | - | - | -19 | - | 19 |
Right-of-use assets | -436 | -8 | - | - | -444 | -444 | - |
Non-current financial assets | -3 | - | - | - | -3 | 4 | 7 |
Receivables | - | - | - | - | - | - | - |
Provisions | 2 | 1 | - | - | 3 | 3 | - |
Deferred credits | 43 | -5 | - | - | 38 | 43 | 5 |
Loans and other financial liabilities | - | - | - | - | - | - | - |
Lease liabilities | 445 | 5 | - | - | 450 | 450 | - |
Other items | 3 | - | - | - | 3 | 3 | - |
Loss set-off | 50 | -14 | - | - | 36 | 36 | - |
Deferred tax assets (liabilities) | 157 | -11 | - | 2 | 148 | 202 | 54 |
(in millions of euros) | Net balance as at 1 January 2020 | recognised in income statement | recognised in other comprehensive income | other changes | Net positions as at 31 December 2020 | Deferred tax assets | Deferred tax liabilities |
Property, plant and equipment | 84 | -62 | - | - | 22 | 45 | 23 |
Intangible assets | -19 | 2 | - | - | -17 | - | 17 |
Right-of-use assets | -444 | -56 | - | - | -500 | -461 | 39 |
Non-current financial assets | -3 | -4 | - | 1 | -6 | 1 | 7 |
Receivables | - | -2 | - | - | -2 | 4 | 6 |
Provisions | 3 | 2 | - | - | 5 | 5 | - |
Deferred credits | 38 | -20 | - | - | 18 | 19 | 1 |
Loans and other financial liabilities | - | - | - | - | - | - | - |
Lease liabilities | 450 | 50 | - | 2 | 502 | 502 | - |
Other items | 3 | -1 | - | 1 | 3 | 3 | - |
Loss set-off | 36 | -21 | - | - | 15 | 15 | - |
Deferred tax assets (liabilities) | 148 | -112 | - | 4 | 40 | 133 | 93 |
As at 31 December 2020, the Group has deferred tax assets for temporary differences amounting to €550 million. These deferred tax assets are not covered by projected profits in almost all scenarios. Therefore, the Group wrote down the tax assets in an amount of €525 million, taking account of offsetting by realisation of deferred tax liabilities. For an explanation of the tax rate, see note 9.
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items because it is unlikely that there will be taxable profit in the future against which the Group can utilise the benefits. The unrecognised deferred tax assets by country are as follows:
(in millions of euros) | Recoverable losses | Temporary losses | Total |
The Netherlands | 14 | 525 | 539 |
The United Kingdom | - | - | - |
Germany | 32 | - | 32 |
Totaal | 46 | 525 | 571 |
Accounting policy
The deferred tax assets and deferred tax liabilities arise from temporary differences between the carrying amount of assets and liabilities in the financial reporting and their tax base. These are calculated on the basis of the tax rates that are expected to apply when the temporary differences are reversed, using tax rates enacted or substantively enacted as at the reporting date.
Deferred tax assets, including those deriving from tax loss carry-forwards, are measured if it is probable that sufficient tax profits will be available for setting off the losses and if possibilities for offsetting losses can be utilised.
Deferred tax assets and deferred tax liabilities are only netted if there is a formal netting right and the company intends to settle deferred tax positions simultaneously. Deferred tax positions are stated at nominal value.