ANNUAL REPORT 2016
2.13 LOANS OBTAINED
Loans obtained are initially recognised at the fair value, including incurred transaction costs.
Medium and long term loans are subsequently presented at cost minus any amortisation; any
difference between receipts (net of transaction costs) and the amortised value is recognised
in the consolidated statement of comprehensive income during the loan period, using the
effective rate method.
Loans obtained are classified in current liabilities, except when the Group is entitled to an
unconditional right to defer the liquidation of the liability for at least 12 months after the
consolidated statement of financial position date.
2.14 INCOME TAX AND DEFERRED TAXES
Income tax is calculated under the Special Regime of Taxation of Groups of Companies (RE-
TGS), in the segment of Portugal, and the Group decided that the expense / income concerning
subsidiaries established in Portugal (except for Restmon and Iberusa ACE) will be reflected
in other current liabilities / assets with the parent company, and tax savings being reflec-
ted in the accounts of the parent company. In the Spanish segment, the current tax of the
subsidiaries based in Vigo - Spain was calculated under the special tax regime for economic
groups. The remaining subsidiaries, based in Barcelona - Spain and Luanda – Angola (Note
5), calculate their current income tax individually, in the light of the regulations in force in
the country of their registered office.
Deferred taxes are recognised overall, using the liability method and calculated based on the
temporary differences arising from the difference between the taxable base of assets and
liabilities and their values in the consolidated financial statements. However, if the deferred
cost arises from the initial recognition of an asset or liability in a transaction that is not a
corporate concentration or that, on the transaction date, does not affect the accounting result
or the tax result, this amount is not accounted. Deferred taxes are determined by the tax
(and legal) rates decreed or substantially decreed on the date of the consolidated statement
of financial position and that can be expected to be applicable in the period of the deferred
tax asset or in the liquidation of the deferred tax liability.
Deferred tax assets are recognised insofar as it will be probable that future taxable income
will be available for using the respective temporary difference.
2.15 PROVISIONS
Contingent liabilities are defined by the Company as (i) possible obligations arising from past
events and whose existence will only be confirmed by the occurrence or not of one or more
uncertain future events not wholly under the control of the Company or (ii) present obligations
which arise from past events but are not recognized because it is not probable that an outflow
of resources embodying economic benefits is required to settle the obligation or the amount
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