NOTES
Consolidated financial statements •73
SECTION 2: RESULTS FOR THE YEAR, CONTINUED
2.5 TAXATION
Income tax expense
DKKmillion
2014
2013
Current income tax charge
786
561
Adjustment concerning previous years
35
136
Impact of change in tax rates
17
-57
Change in deferred tax
-64
-118
Total income tax expense
774
522
Tax reconciliation
Profit before tax
3,872
2,742
Corporate tax rate inDenmark, 24.5% (2013: 25%)
949
686
Tax effect of:
Differences in foreign subsidiaries’ tax rates compared toDanish tax rate
18
52
Impact of change in tax rates
17
-57
Non-taxable income and non-deductible expenses
-243
-292
Adjustment concerning previous years
35
136
Adjustments of deferred tax assets, net
-2
-3
Total income tax expense
774
522
Effective income tax rate
20.0%
19.0%
Deferred tax
DKKmillion
2014
2013
Deferred tax at 1 January
195
362
Exchange rate adjustments
-21
14
Change in deferred tax - recognised in income statement
-64
-118
Change in deferred tax - recognised in statement of comprehensive income
-5
-6
Change in deferred tax - recognised in statement of changes in equity
-99
-
Impact of change in theDanish tax rate
17
-57
Deferred tax at 31December
23
195
Deferred tax assets
407
276
Deferred tax liabilities
430
471
Deferred tax, net
23
195
Specification of deferred tax
Intangible assets
527
534
Property, plant and equipment
-206
-13
Non-current assets and liabilities
-298
-327
Tax loss carry-forwards
0
1
Deferred tax, net
23
195
Unrecognised share of tax loss carry-forwards
79
62
Latent tax liability on undistributed dividends
1
277
246
1
The latent tax liability on undistributed dividends relates to a dividend tax of 10%, whichwill be payable if retained earnings earned before 1 September 2012
are distributed as dividends from PANDORA ProductionCo. Ltd. to PANDORAA/S. At present,Management does not intend todistribute this dividend.
