Annual Report 2014
The Group provides for taxes based on the tax accounts maintained and prepared in accordance with the tax regulations of countries where the Group and its subsidiaries operate and which may differ from IFRS.
Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Temporary differences relate mostly to different methods of income and expense recognition, as well as to recorded values of certain assets.
The tax rate used for the reconciliations between tax expense and accounting profit is the corporate tax rate of 20% payable by corporate entities in the Russian Federation on taxable profits under the tax law in that jurisdiction.
| Consolidated statement of financial position | Consolidated statement of profit or loss | |||
|---|---|---|---|---|
| December 31, 2014 | December 31, 2013 | Year ended December 31, 2014 | Year ended December 31, 2013 | |
| Tax effect from deductible temporary differences | ||||
| Financial assets at fair value though profit or loss | 31 148 | 9 507 | 21 641 | (20 243) |
| Investments in associates and investments available-for-sale | 1 743 | 17 227 | (247 941) | (41 456) |
| Property and equipment and intangible assets | 16 383 | 13 731 | 2 652 | 168 |
| Other assets | 9 032 | 8 785 | (2 766) | 5 795 |
| Tax loss carried forward | 119 758 | 46 991 | 72 767 | (725) |
| Other liabilities | 361 005 | 207 748 | 152 124 | (4 923) |
| Total tax effect from deductible temporary differences | 539 069 | 303 989 | (1 523) | (61 384) |
| Tax effect from taxable temporary differences | ||||
| Cash and cash equivalents | (16 802) | (276) | (16 526) | (26) |
| Financial assets at fair value though profit or loss | (1 386) | (7 507) | 6 121 | (217) |
| Central counterparty financial assets | (3 709) | (152) | (3 557) | 3 024 |
| Assets held for sale | - | (44 807) | 44 807 | (44 807) |
| Investments in associates and investments available-for-sale | (611 337) | (7 544) | (603 793) | 39 040 |
| Investments held-to-maturity | - | - | - | 10 |
| Property and equipment and intangible assets | (3 741 184) | (3 878 865) | 158 294 | 170 272 |
| Other assets | (6 814) | (719) | (6 095) | 602 |
| Other liabilities | (841) | (1 587) | 746 | 1 605 |
| Total tax effect from taxable temporary differences | (4 382 073) | (3 941 457) | (420 003) | 169 503 |
| Deferred tax (expense) /income | (421 526) | 108 119 | ||
| Deferred income tax assets | 172 596 | 186 564 | ||
| Deferred income tax liabilities | (4 015 600) | (3 824 032) | ||
| Year ended December 31, 2014 | Year ended December 31, 2013 | |
|---|---|---|
| Profit before income tax | 20 028 141 | 14 623 899 |
| Tax at the statutory tax rate (20%) | 4 005 628 | 2 924 780 |
| Non-deductible expenses for tax purposes | 176 340 | 249 935 |
| Tax effect of income taxed at rates different from the prime rate | (145 736) | (133 836) |
| Non-taxable gain on acquisition of subsidiary | (10 734) | - |
| Deferred tax from a previously unrecognised temporary difference of a prior period | (5 925) | 1 816 |
| Adjustments in respect of current income tax of previous years | 15 403 | (22 051) |
| Previously unrecognized deferred tax related to subsidiary transferred to disposal group | - | 21 561 |
| Income tax expense | 4 034 976 | 3 042 205 |
| Current income tax expense | 3 613 450 | 3 150 324 |
| Deferred taxation movement due to origination and reversal of temporary differences | 494 293 | (108 844) |
| Deferred taxation movement due to tax losses carried forward | (72 767) | 725 |
| Income tax expense | 4 034 976 | 3 042 205 |
| Year ended December 31, 2014 | Year ended December 31, 2013 | |
|---|---|---|
| Beginning of the year — deferred tax assets | 186 564 | 103 178 |
| Beginning of the year — deferred tax liabilities | (3 824 032) | (3 884 784) |
| Change in deferred income tax balances recognized in profit or loss | (421 526) | 108 119 |
| Changes in deferred income tax balances recognized in other comprehensive income | 232 457 | 29 323 |
| Deferred income tax liabilities arising from business combinations (Note 6) | (19 480) | - |
| Effect of movements in exchange rates | 3 013 | 278 |
| Deferred income tax transferred to assets of disposal group held for sale | - | (3 069) |
| Deferred income tax recognized directly in equity | - | 9 487 |
| End of the year — deferred tax assets | 172 596 | 186 564 |
| End of the year — deferred tax liabilities | (4 015 600) | (3 824 032) |