22. Deferred tax assets and liabilities - €9,112 million and €8,314 million

 

The following table details changes in deferred tax assets and liabilities by type of timing difference and calculated based on the tax rates established by applicable regulations, as well as the amount of deferred tax assets offsettable, where permitted, with deferred tax liabilities.

 

Millions of euro

 

Increase/(Decrease) taken to income statement

Increase/(Decrease) taken to equity

Change in the scope of consolidation

Translation adjustment

Other changes

Reclassifications of assets held for sale

 
 

at Dec. 31, 2018

      

at Dec. 31, 2019

Deferred tax assets:

        

 - differences in the value of intangible assets, property, plant and equipment

1,669

726

(11)

(3)

(1)

(7)

-

2,372

 - accruals to provisions for risks and charges and impairment losses with deferred deductibility

1,726

(119)

(1)

-

(29)

126

-

1,702

 - tax loss carried forward

508

56

-

-

(5)

(57)

-

502

- measurement of financial instruments

801

37

(60)

-

1

7

-

786

- employee benefits

869

6

209

-

(10)

12

-

1,086

- other items

2,732

(104)

1

1

(1)

35

-

2,664

Total

8,305

602

138

(2)

(45)

116

-

9,112

Deferred tax liabilities:

        

 - differences on non-current and financial assets

6,638

(623)

(3)

89

(90)

82

-

6,093

 - measurement of financial instruments

403

41

36

-

1

-

-

481

 - other items

1,609

15

8

9

(16)

115

-

1,740

Total

8,650

(567)

41

98

(105)

197

-

8,314

         

Non-offsettable deferred tax assets

      

4,743

Non-offsettable deferred tax liabilities

      

3,054

Excess net deferred tax liabilities after any offsetting

      

891

At December 31, 2019, deferred tax assets, recognized when there is a reasonable certainty of their recoverability, totaled €9,112 million (€8,305 million at December 31, 2018).
Deferred tax assets increased by €809 million during the year due, essentially, to taxes recognized in 2019 on the impairment of coal-fired plants in Italy and Spain.
It should also be noted that deferred tax assets (in the amount of €279 million) were not recorded in relation to prior tax losses in the amount of €965 million because, on the basis of current estimates of future taxable income, it is not certain that such assets will be recovered.
Deferred tax liabilities amounted to €8,314 million at December 31, 2019 (€8,650 million at December 31, 2018). They essentially include the determination of the tax effects of the value adjustments to assets acquired as part of the final allocation of the cost of acquisitions made in the various years and the deferred taxation in respect of the differences between depreciation charged for tax purposes, including accelerated depreciation, and depreciation based on the estimated useful lives of assets.
Deferred tax liabilities decreased by a total of €336 million due, in particular, to the release of €494 million in deferred taxes of Enel Distribuição São Paulo following the merger with Enel Brasil Investimentos Sudeste SA (Enel Sudeste), which nullified the differences between fiscal and carrying amounts of net assets on the books at the time of the acquisition of Enel Distribuição São Paulo. This decrease was partially offset by the effects of hyperinflation.