IMC ANNUALREPORT 2020 - Flipbook - Page 48
IMC ANNUAL REPORT 2021
FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Deferred tax assets are recognized only if it is probable that future
taxable amounts will be available to utilize those temporary differences
and losses. Deferred tax liabilities and assets are not recognized for
temporary differences between the carrying amount and tax bases of
investments in foreign operations where the Company is able to control
the timing of the reversal of the temporary differences and it is
probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets and liabilities and when
the deferred tax balances relate to the same taxation authority. Current
tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or
to realize the asset and settle the liability simultaneously. Current and
deferred tax is recognized in profit or loss, except to the extent that it
relates to items recognized in other comprehensive income or directly in
equity. In this case, the tax is also recognized in other comprehensive
income or directly in equity, respectively.
2.15. EMPLOYEE BENEFIT OBLIGATIONS
(a) Short-term obligations
Consolidated
financial statements
Notes to the consolidated
financial statements
Company
financial statements
Other information
Independent Auditor’s report
Liabilities for wages, salaries, variable remuneration and social security
contributions, including non-monetary benefits and accumulating sick
leave that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service are
recognized in respect of employees’ services up to the end of the
reporting period and are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
(b) Long-term obligations
Long-term employee benefits are employee benefits (excluding postemployment benefits) that are not expected to be settled wholly before
12 months after the end of the annual reporting period in which the
employees render the service that gives rise to the benefit. These
liabilities are presented under other liabilities and accrued expenses in
the balance sheet.
(c) Post-employment obligations
The Group has various pension schemes, in accordance with local
conditions and practices in the countries in which it operates. All pension
schemes are defined contribution plans, which are funded through
payments to independent entities. The Group has no further payment
obligations once the contributions have been paid. The contributions are
recognized as employee benefit expenses when they are due. Prepaid
contributions are recognized as an asset to the extent that a cash
refund or a reduction in future payments is available.
2.16. INVESTMENTS IN DEPOSITARY RECEIPTS FOR SHARES
Selected senior managers of the Group invest a fixed percentage of
their variable remuneration in depositary receipts for shares of IMC B.V.
After a lock-up period of three years, the employees may offer the
depositary receipts to the Company’s shareholders or another
designated party.
The value of the depositary receipts is determined by means of a net
income multiple approach using a fixed multiplier.
Since the Company does not have an obligation to repurchase any
depositary receipts from employees or otherwise settle in cash, this
arrangement does not have any impact on the Company’s statement of
profit and loss and other comprehensive income or the balance sheet.
2.17. OFFSETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Financial assets and liabilities are offset and the net amount reported in
the balance sheet where the Group has a legally enforceable right to
offset the recognized amounts, and there is an intention to settle on a
net basis or realise the asset and settle the liability simultaneously.
Currently, long and short positions in securities, futures and derivatives
are not netted out in the balance sheet, since the underlying securities
and liabilities are not uniformly matched. The amounts shown in the
balance sheet in respect of positions in securities, together with options
on these items, are not indicative of the financial risk associated with
the long and short positions concerned.
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