IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 18.2.2 Deferred tax liabilities Deferred tax liabilities on 31st December 2017 and 2016, according to the temporary differ- ences that generated them, are broken down as follows: Deferred tax liabilities Dec. 2017 Dec. 2016 Amortization and depreciation standardization (1) 7.700.271 8.204.190 Temporary differences in Spain (2) 3.398.116 3.707.552 Hyperinflationary Economies (IAS 29) 4.870.489 - Other temporary differences 327.993 330.357 16.296.869 12.242.099 (1) The deferred tax homogenization depreciation corresponds to the difference in depreciation between the individual and consolidated accounts which by 2010 were prepared on different criteria. This value will reduce over the years. (2) Relate mainly to UTE income of the year, with the incorporation in its subsidiaries carried out with the postponement of a year, in compliance with the regulations in force in Spain. Additionally in 2017, it includes the deferred tax effect of the recognition of the Pans and Ribs brands (Eat Out group) in the amount of 5.500.000 eur, less deferred tax assets of the goodwill tax depreciation allocated to the Ribs business, amounting to 3.400.000 eur. This compensation was made because the taxable temporary differences are reversed in the same time frame as the deductible temporary differences. 19. PROVISIONS On 31 December 2017 and 2016, provisions were broken down as follows: Dec. 2017 Dec. 2016 Legal processes 5.257 5.257 Income tax (1) 3.211.467 2.028.871 Compensation (2) 1.245.000 1.350.000 Other 28.000 28.000 Provisions 4.489.724 3.412.128 (1) Provision concerning 2014 and 2015 income tax calculation for tax benefits in the process of confirmation of their implementation. (2) Provision of 245.000 eur in 2017 and 350.000 in 2016 related to the legal process concerning the former Madeira Airport concessionaire em- ployees, and 1.000.000 eur related to contractual investment commitments that may be claimed by the grantor at the end of the contracts. 265