Classification criteria

Current and deferred taxes, calculated in compliance with national tax laws, are entered in the income statement with the exception of items credited or debited directly to equity.

Current tax liabilities are shown in the statement of financial position net of relative current tax assets.

Deferred tax assets and liabilities are recorded as open balances without offsetting compensations and are included in the item ‘tax assets’ and ‘tax liabilities’ respectively.

Recognition and measurement criteria

Deferred tax assets and liabilities are calculated based on temporary differences – without timing limits – between the value attributed to the asset or liability according to statutory criteria and the corresponding tax value. This is achieved applying the tax rates expected to be applicable in the year in which the tax asset will be realised, or the tax liability will be settled, according to theoretical tax laws in force on the realisation date.

Deferred tax assets are entered in the statement of financial position according to the probability of their recovery, calculated on the basis of the company’s (or, due to tax consolidation, the parent company’s) ability to continue to generate taxable income.

Deferred tax liabilities are entered in the statement of financial position with all the taxable temporary differences, with the only exception of large asset amounts taxable in future years represented by strategic investments not expected to be sold and reserves.