Consolidated Financial Statements
b) Income Tax
The group is subject to Income Tax in Portugal,
Spain and Angola. A significant judgement must
be made to determine the estimated income tax.
The large number of transactions and calcula-
tions make it difficult to determine the income
tax during normal business procedures. The group
recognises liabilities for additional payment of
taxes that may originate from reviews by the tax
authorities. When tax audits indicate a final result
different from the initially recorded amounts, the
differences will have an impact on the income tax
and on deferred taxes in the period in which those
differences are identified.
c) Provisions
The group on a periodic basis examines possible
obligations arising from past events that should
be recognized or disclosed.
The subjectivity inherent in determining the prob-
ability and amount of internal resources required
to settle these obligations may result in signifi-
cant adjustments due to changes in the assump-
tions used or the future recognition of provisions
previously disclosed as contingent liabilities.
d) Fixed tangible and intangible assets
The determination of lifetime period of the as-
sets and the depreciation method to be applied,
is essential to determine the amount of depre-
ciation to be recognized in the income statement
for each year.
According to the best judgment of the Board of
Directors and considering the practices adopted
by companies in the sector internationally these
two parameters are set for the assets and busi-
ness in question.
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