Anticipated losses from pending transactions
Provisions for anticipated losses from pending transactions must
be recognized when applicable for financial reporting purposes.
For tax purposes, however, it has not been possible to recognize
such provisions since 1 January 1997.
Tax rules also stipulate stricter recognition
criteria for a number of provisions, including
provisions for infringement of patents, copyrights or similar
industrial rights, and provisions for long-term service awards.
Provisions (and liabilities) must be discounted for tax purposes
using an interest rate of 5.5% (except pension provisions, see
above). Only short-term provisions and liabilities (maturing
within 12 months of the balance sheet date) or interest-bearing
amounts are excepted from this requirement.
EU Forecast
euf:ba18f:200/nws-01