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Current tax consists of the expected tax payable on the
taxable profit of the year, calculated using tax rates
enacted or substantively enacted at the balance sheet
date, as well as tax adjustments in respect of prior years.
The amount of current income tax is determined on the
basis of the best estimate of the tax gain or expense, with
due consideration for any uncertainty with regard to
income tax. Relating to the uncertain tax position
regarding the Belgian Excess Profit Ruling (EPR), we refer
to notes 8 and 29.
Additional income tax resulting from issuing dividends is
recorded simultaneously with the liability to pay the
dividend in question.
Deferred tax is recorded based on the balance sheet
method, for all temporary differences between the taxable
base and the carrying amount for financial reporting
purposes, for both assets and liabilities. No deferred taxes
are recorded for the following temporary differences:
initial recording of goodwill, initial recording of assets and
liabilities in a transaction that is not a business combina-
tion and that do not affect the accounting or taxable
profits and differences relating to investments in subsidi-
aries to the extent that an offsetting entry is unlikely in
the near future. The amount of the deferred tax is based
on expectations as to the realization of the carrying value
of the assets and liabilities, using the tax rates in effect or
those of which the enactment has been substantively
completed at the balance sheet date.
A deferred tax asset is recorded in the consolidated
statement of financial position only when it is probable that
adequate future taxable profits are available against which
temporary differences can be utilized. Deferred tax assets
are reduced whenever it is no longer probable that the
related tax benefit will be realized.
The deferred tax receivables and liabilities are offset per
tax jurisdiction in so far as there is a de jure enforceable
right to balance the amounts recognized and an intention
to settle the liability on a net basis or to realize the
receivable at the same time as the liability is settled.
SEGMENT REPORTING
An operating segment is a clearly distinguishable compo-
nent of the Group that engages in business activities from
which it may earn revenue and incur expenses, including
revenue and expenses in relation to transactions with any
of the Group’s other components. The Group is organized
geographically. The different countries constitute operat-
ing segments, in accordance with the internal reporting to
the CEOs of the Group.
DISCONTINUED OPERATIONS
Classification as discontinued operations occurs upon the
disposal of or, if earlier, when the business activity fulfills
the criteria for classification as held for sale. Whenever an
activity is classified as a discontinued operation, the
comparative income statement figures are restated as if
the activity had been discontinued from the start of the
comparative period.
NEW STANDARDS AND INTERPRETATIONS
NOT YET ADOPTED
A number of new standards, amendments and interpreta-
tions were not yet effective in the fiscal year ending
31 December 2015 and have therefore not been applied to
the present consolidated financial statements.
IFRS 9 Financial Instruments
, published in July 2014,
serves to replace the existing guideline as included in
IAS 39 Financial instruments: recognition and measure-
ment. IFRS 9 contains revised stipulations with regard to
the classification and valuation of financial instruments,
including a new model for expected credit losses for
calculating the depreciation of financial assets and the
new general requirements for hedge accounting that bring
hedge accounting further into line with risk management.
Furthermore, IFRS 9 adopts the stipulations in IAS 39 for
recognizing and no longer recognizing financial instru-
ments. IFRS 9 is effective for fiscal years that begin on or
after January 2018. Earlier application is permitted. This
new standard has not yet been ratified by the EU. The
Group does not intend to early adopt this standard. These
amendments are expected to have no significant influence
on the consolidated financial statements of the Group.
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05 / FINANCIAL REPORT
KINEPOLIS GROUP
ANNUAL REPORT 2015