Page 31 - KELAG Annual Report 2017
P. 31

Green  certificates  and  CO2  allowances  obtained  without  charge  qualify  as  grants  related  to
                                      income within the meaning of IAS 20. Pursuant to IAS 20.7, these are recognised when there is
                                      assurance that the company will comply with the conditions attaching to them and the grants
                                      will be received. In this event, the certificates and allowances are recorded at fair value in the
                                      KELAG Group.

                                      The certificates and allowances are presented under inventories upon acquisition of the legal
                                      right (generally when electricity is produced in certified power plants). Income from the allocation
                                      of certificates and allowances is reported under other operating income. If necessary, subsequent
                                      measurement is at the lower net realisable value. Income from the sale of green certificates is
                                      included under revenue.

                                      The income tax expense reported in the income statement for the past financial year comprises
                                      the income tax calculated from the taxable income and the applicable tax rate for the individual
                                      entities as well as the change in deferred tax liabilities and assets.

                                      With a group and tax equalisation agreement dated 7 December 2004, KELAG formed a tax group
                                      pursuant to Sec. 9 KStG (Austrian Corporate Income Tax Act) as a member with KEH as the group
                                      parent. Since 2005, several new members from the Group have been added to this tax group. The
                                      group parent allocates the corporate income tax amounts originated by the group members and
                                      calculated using the standalone method to those group members using tax allocations. The tax
                                      expense in the income statement of the group parent is adjusted by means of the tax allocations.

                                      Temporary differences that result from or change in subsequent periods as a result of the ability
                                      to amortise goodwill for tax purposes are allocated to a deferred tax.

                                      Deferred taxes relating to items recognised outside profit or loss are recognised outside profit or
                                      loss.  Deferred  taxes  are  recognised  in  line  with  the  underlying  transaction  either  in  other
                                      comprehensive income or directly in equity.

                                      The corporate income tax rate applicable to the parent company comes to 25%.

                                      The following income tax rates were used for the fully consolidated entities:
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