Annual Financial Report for the period from1st of January to the 31st of December 2013
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sold or reissued, any consideration received, net of any directly attributable incremental transaction costs, is
included in equity attributable to the Company’s equity holders. Treasury stock does not hold any voting rights.
3.17 Income tax & deferred tax
The tax for the period comprises current income tax and deferred tax, i.e. the tax charges or tax credits that
are associated with economic benefits accruing in the period but have been assessed by the tax authorities in
different periods. Income tax is recognized in the income statement of the period, except for the tax relating
to transactions that have been booked directly to Equity. In such case the related tax is, accordingly, booked
directly to Equity.
Current income taxes include the short-term liabilities or receivables from the fiscal authorities that relate to
taxes payable on the taxable income of the period and any additional income taxes from previous periods (tax
audit differences).
Current taxes are measured according to the tax rates and tax laws prevailing during the financial years to
which they relate, based on the taxable profit for the year. All changes to the short-term tax assets or liabilities
are recognized as part of the tax expense in the income statement.
Deferred income tax is determined according to the liability method which results from the temporary
differences between the book value and the tax base of assets or liabilities. Deferred tax is not booked if it
results from the initial recognition of an asset or liability in a transaction, except for a business combination,
which when it occurred did not affect neither the accounting nor the tax profit or loss.
Deferred tax assets and liabilities are valued based on the tax rates that are expected to be in effect during the
period in which the asset or liability will be settled, taking into consideration the tax rates (and tax laws) that
have been put into effect or are essentially in effect up until the balance sheet date. In the event where it is
impossible to identify the timing of the reversal of the temporary differences, the tax rate in effect on the day
after the balance sheet date is used.
Deferred tax assets are recognized to the extent that there will be a future tax profit to be set against the
temporary difference that creates the deferred tax asset.
Deferred income tax is recognized for the temporary differences that result from investments in subsidiaries
and associates, except for the case where the reversal of the temporary differences is controlled by the Group
and it is possible that the temporary differences will not be reversed in the foreseeable future.
Most changes in the deferred tax assets or liabilities are recognized as part of the tax expense in the income
statement. Only changes in assets or liabilities that affect the temporary differences are recognized directly
in the Equity of the Group, such as the revaluation of property value, that results in the relevant change in
deferred tax assets or liabilities being charged against the relevant Equity account.
3.18 Employee benefits
Short-term benefits:
Short-term employee benefits (except post-employment benefits) monetary and in kind
are recognized as an expense when they accrue. Any unpaid amount is booked as a liability, while in the case
