Boskalis Annual Report 2020

103

103

Right-of-use assets An impairment charge of EUR 2.8 million was recorded relating leased properties which are available for rent. Investments in joint ventures and associates An impairment charge of EUR 96.2 million was recorded relating to two joint ventures. Deteriorated market conditions that are not expected to materially improve in the foreseeable future have resulted in materially lower levels of expected future cash flows. Next to these impairment charges on the investment in joint ventures and associates, impairment charges accounted as part of share in result of joint ventures and associates amounted to EUR 26.8 million. REVERSAL OF IMPAIRMENTS EVIDENCED BY SALE TRANSACTION During 2019 the Group reversed two impairments for a total amount of EUR 40.1 million as a result of sale transactions. The Group reversed EUR 27.0 million related to the sale of an impaired vessel and EUR 13.1 million relating to the impairment on Kotug Smit Towage as a result of the finalization of the sale (see note 5.3).

11. FINANCE INCOME AND EXPENSES

2019

2020

Interest income on short-term bank deposits

995 995

369 369

Finance income

Interest expenses

- 13,117 - 1,808 - 1,751 - 16,676

- 11,822 - 1,783 - 1,652 - 15,257

Accretion of interest of lease liabilities

Other expenses Finance expenses

Net finance expenses recognized in consolidated statement of profit or loss

- 15,681

- 14,888

Amortization relating to interest-bearing borrowings amounts to EUR 0.5 million (2019: EUR 0.3 million) and commitment fees paid to EUR 0.9 million (2019: EUR 0.9 million). There are no fair value adjustments for interest-bearing borrowings (with regard to hedging instruments) in 2020 and 2019. 12. INCOME TAX EXPENSES The tax charge amounts to EUR 26.2 million (2019: EUR 20.1 million) which can be specified as follows:

2019

2020

CURRENT INCOME TAX EXPENSES Current year

- 40,687 11,174

- 35,396 15,111

Adjustment in respect of current income tax regarding prior financial years Reclassification of deferred income taxes regarding prior financial years

951

332

- 28,562

- 19,953

DEFERRED INCOME TAX EXPENSES Origination and reversal of temporary differences Effect of changes in tax rates on deferred income taxes

- 387

5,619 1,272 - 332

- 1,892

Reclassification of deferred income taxes regarding prior financial years

- 951

Movement of recognized tax losses carried forward

11,651

- 12,822 - 6,263

8,421

- 20,141

- 26,216

TAXATION IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS

The operational activities of the Group are subject to various tax regimes with tax rates ranging from 0% to 42% (2019: 0% to 43%). These different tax rates, non-deductible expenses, treatment of tax losses, special taxation regimes, adjustments in respect of prior years and results not subject to taxation, result in an effective tax rate in the reporting period of −37.2% (2019: 21.2%), as disclosed in the consolidated statement of profit or loss.

ANNUAL REPORT 2020 – BOSKALIS A NUAL REPORT 2020 -- BOSKALIS