The change occurred is 62,985,000 euros, net of reversal of tax items that have been included among extraordinary charges.
No deferred taxes were credited or debited directly to shareholders' equity.
The valuation of deferred tax assets was made based on expectations of actual utilization and taking into account the time horizon of the official plans of the Group. More specifically:
  • the deferred-tax assets on tax loss carryforwards were estimated at 46 million euros;
  • the recoverability of the reserves for risks and of other items that could generate temporary differences was estimated at 44 million euros.
With regard to the merger transactions completed in 2003 and 2004, the loss upon merger that had been allocated to the equity investments and the property, plant and equipment accounts of the absorbed companies, and to goodwill, is not tax deductible and the recognitions of such amounts in the statement of income gives rise to items that are not tax deductible.
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