132 / 148
16.4 Reconciliation of the accounting profit to the income tax expense
The reconciliation of the accounting profit to the income tax expense is as follows (in
thousands of euros):
2014
2013
Accounting profit before tax
87,130
30,462
Tax charge at 30%
26,139
9,139
Tax credits earned in the year:
Audiovisual productions
Donations to not-for-profit entities
Other
(11,425)
(11,342)
(83)
-
(11,273)
(10,990)
(283)
-
Offset of tax losses:
Other -
Permanent differences (Note 18.2)
(5,081)
(1,594)
Total income tax expense for the year
9,633) (3,728)
Income tax adjustments
Adjustment - difference in income tax per tax return
32,264
(1,242)
33,506
(278)
(278)
Total income tax expense recognised in profit or loss
41,897 (4,006)
The breakdown of the income tax expense for the year is as follows (in thousands of euros):
2014
2013
Current tax
902 (10,332)
Deferred tax
8,731
6,604
Total income tax expense for the year
9,633 (3,728)
Spanish Corporation Tax Law 27/2014, of 27 November, effective from 1 January 2015, which
establishes, among other changes, a change in the income tax rate to 28% in 2015 and 25%
in 2016 and subsequent years.
This change affects the balances of "Deferred Tax Assets" and "Deferred Tax Liabilities", which
must be adjusted to the tax rates at which are expected to be reversed.
Accordingly, the Company made an adjustment of EUR 34,475 thousand with a charge to
"Adjustments to Income Tax" arising from the calculation of the balance of "Deferred Tax
Assets" (deferred tax assets and tax loss carryforwards, see Table 16.5) and "Deferred Tax
Liabilities" (see Table 16.6) at the 28% rate and a subsequent calculation of these balances at
25% based on the Company's best estimate of the recovery of tax assets in future years.
16.5 Deferred tax assets recognised
The difference between the tax charge allocated to 2014 and to prior years and the tax charge
already paid or payable for such years, which is recognised under “Deferred Tax Assets”, arose
as a result of temporary differences derived from the following:
CHANGES IN DEFERRED TAX
ASSETS
Thousands of euros
2013
Additions Disposals
Other
Tax Effect
2014
Contingencies and charges
10,747
2,175 (2,086)
38
(779)
10,095
Accounts payable
653
300
(795)
576
(123)
611
Other items
2,321
1,232
(16)
(143)
(1,081)
2,313
Tax effect of assets at fair value
2,541
- (1,287)
-
(724)
530
Financial hedging instruments
(361)
-
(571)
-
155
(777)
Total
15,901
3,707 (4,755)
471
(2,552)
12,772
The detail for 2013 is as follows: