37. Change in deferred tax assets

Changes in deferred tax assets in the year ended 31 December 2015 Opening balance Changes recognized in profit or loss Changes recognized in other comprehensive income Change in group composition Exchange differences Other changes1) Closing balance
Loan receivables from clients - - - 215,127 - - 215,127
Liabilities to clients - - - 26,772 - - 26,772
Intangible assets - - - 57,000 - - 57,000
Financial instruments (762) 1,070 365 (4,013) (9) 1,786 (1,563)
Receivables 1,357 (533) - 89 7 (483) 437
Property 2,025 (1,734) - - 12 (3,600) (3,297)
Provisions for employee benefits 1,139 (479) (8) - (2) (884) (234)
Provision for bonuses and deductions for the bonus fund 1,886 335 - 7 (36) (1,537) 655
Other provisions and accruals 7,688 (1,010) - 35,000 (344) (4,388) 36,946
Tax losses to be used in future periods 6,603 (563) - 2,771 (108) (5,846) 2,857
Provision for PTE’s reimbursement of undue handling fees to the Social Insurance Institution 1,374 353 - - - - 1,727
Tax allowance regarding operations in the special economic zone 5,647 7,115 - - - - 12,762
Total deferred tax assets 26,957 4,554 357 332,753 (480) (14,952) 349,189

1)The item presents deferred assets and tax liabilities in some of PZU Group entities.

change_in_deferred_tax_assets_1_pzu2015.xlsx

Changes in deferred tax assets in the year ended 31 December 2014 Opening balance Changes recognized in profit or loss Change in group composition Exchange differences Other changes1) Closing balance
Financial instruments 528 1,824 (2,891) (223) - (762)
Receivables 342 477 494 44 - 1,357
Property 2,689 (303) (357) (4) - 2,025
Provisions for employee benefits 129 (64) 1,081 (7) - 1,139
Provision for bonuses and deductions for the bonus fund 396 299 1,164 27 - 1,886
Other provisions and accruals 3,506 1,809 2,790 (417) - 7,688
Tax losses to be used in future periods 685 3,303 4,080 102 (1,567) 6,603
Provision for PTE’s reimbursement of undue handling fees to the Social Insurance Institution 1,406 (32) - - - 1,374
Tax allowance regarding operations in the special economic zone 7,268 (1,621) - - - 5,647
Total deferred tax assets 16,949 5,692 6,361 (478) (1,567) 26,957

1)The item presents transfer of PZU Lithuania's assets to assets held for sale due to the transaction described in Note 2.4.1. The decrease of assets was translated at average rate described in Note 5.3.

change_in_deferred_tax_assets_2_pzu2015.xlsx

For all consolidated entities participating in the TCG, deferred tax assets and provisions are offset.

As at 31 December 2015, undisclosed deferred tax assets related to tax losses were as follows:

  • in Link4: PLN 11,481 thousand (as at 31 December 2014: PLN 16,846 thousand);
  • in PZU Lietuva Gyvybes Draudimas: PLN 12,422 thousand (as at 31 December 2014: PLN 12,292 thousand);
  • in special purpose entities of property funds: PLN 114 thousand.

Losses in Lithuanian company can be realized at a time that is not prescribed by the provisions of law. Tax loss on Link4 can be realized during one year (PLN 188 thousand) and within from 1 to 5 years (PLN 11,293 thousand). These periods will be counted from the moment in which Link4 ceases to be part of the TCG (not earlier than the end of 2017).