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B.23 TAXATION
Current taxes are calculated on the basis of the taxable
income for the year, applying the tax rates effective at the
end of the reporting period.
Deferred taxes are calculated on all the differences emerging
between the taxable base of an asset or liability and the
related carrying amount, except for goodwill and those
differences arising from investments in subsidiaries, where
the timing of the reversal of such differences is controlled
by the Group and it is likely that they will not reverse in a
reasonably foreseeable future. Deferred tax assets, including
those relating to past tax losses, not offset by deferred tax
liabilities, are recognised to the extent that it is likely that
future taxable profit will be available against which they can
be recovered. Deferred taxes are determined using tax rates
that are expected to apply in the years when the differences
are realised or extinguished, on the basis of tax rates that
have been enacted or substantively enacted by the end of
the reporting period.
Current and deferred taxes are recognised in the income
statement with the exception of those relating to items re-
cognised directly in equity; such taxes are also accounted for
directly in equity. Income taxes are offset if they are levied by
the same taxation authority, if there is a legal entitlement to
offset them and if the net balance is expected to be settled.
Other taxes not related to income, such as property tax, are
reported in “Other expenses”.
B.24 EARNINGS PER SHARE
(a) Basic earnings per share
Basic earnings per share are calculated by dividing the
profit attributable to owners of the parent by the weighted
average number of ordinary shares outstanding during the
year, excluding treasury shares.
(b) Diluted earnings per share
Diluted earnings per share are calculated by dividing the
profit attributable to owners of the parent by the weighted
average number of ordinary shares outstanding during
the year, excluding treasury shares. For the purposes of
calculating diluted earnings per share, the weighted average
number of outstanding shares is adjusted so as to include
the exercise, by all those entitled, of rights with a poten-
tially dilutive effect, while the profit attributable to owners
of the parent is adjusted to account for any effects, net of
taxes, of exercising such rights.
B.25 TREASURY SHARES
Treasury shares are reported as a deduction from equity. The original cost of treasury shares and revenue arising from any
subsequent sales are treated as movements in equity.