Annual report 2015

NOTE 9

INCOME TAXES

Specification of income tax expenses

NOK 1 000

2014

Tax payable of net profit

Income tax payable for the year

Adjustments of prior periods

Total tax payable

Deferred tax expense

Change in deferred tax recognised in the income statement

Effects of changes in tax rates and prior years' taxes

Total deferred tax

Income tax expense

Tax payable in the balance sheet

NOK 1 000

2014

Tax payable of the year

Tax liability from prior years

Advance tax paid

Translation differences

Tax payable

Reconciliation of nominal to effective tax rate

NOK 1 000

2014

Profit before tax

Estimated income tax expense at nominal tax rate (27%)

Losses and other deductions without any net tax effect

Non-taxable net income (-) / costs (+) from securities

Other non-taxable income

Write-down of goodwill

Adjustments for prior periods

Tax effect of other permanent differences

Income tax expense

Effective tax rate

Tax recognised directly in equity

NOK 1 000

2014

Actuarial loss on pension obligations (note 19)

Cash flow hedges (note 28)

Total tax recognised in total comprehensive income

Deferred tax asset and deferred tax liability

NOK 1 000

2014

Inventories

Receivables

Stocks and bonds

Other differences

Tangible assets

Investment properties

Intangible assets

Net pensions

Tax losses to carry forward

Total

Reassessment of deferred tax assets

Net carrying value at 31 December of deferred tax assets (+)/liabilities (-)

Deferred tax assets recognised in balance sheet

Deferred tax liabilities recognised in balance sheet

Net carrying value at 31 December of deferred tax assets (+)/liabilities (-)

Deferred tax assets are reviewed on each balance sheet date, and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow for the deferred tax asset to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the liability shall be settled or the asset be realised, based on tax rates and legislation prevailing at the balance sheet date.

Gross tax losses to carry forward with expiration years

NOK 1 000

After 2017

Without expiration

Total tax losses to carry forward

Change in net deferred tax in balance sheet

NOK 1 000

2014

Net carrying value at 1 January

Translation differences

Acquisition and disposal of subsidiary

Recognised in income statement during the period

Tax recognised in other comprehensive income

Net carrying value at 31 December

*As a consequence of changed legislation for carried interest in PE funds, Ferd's tax basis from such investments is changed. Ferd made a settlement with the authorities on 8 April 2016 and won the case in the question of deductability for carried interest for the income year 2013. We therefore maintain the balance sheet recording of deferred tax assets related to the deduction for carried interest for 2013 and 2014. As previous years were not part of the settlement and the issue not yet clarified on that point, we cannot recognise deferred tax assets related to these years before Ferd has received a final decision from the tax authorities.