14. Deferred tax in the statement of financial position

ACCOUNTING POLICIES

Deferred income tax

The Group recognizes deferred tax liabilities and deferred tax assets in respect of temporary differences between the carrying values of assets or liabilities and their tax bases, and tax loss carryforwards.

Deferred tax liability is recognised in relation to all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be generated which will enable the deductible temporary differences to be offset.

The Group separately recognizes deferred tax assets due to deductible temporary differences connected with recognition of lease liabilities as the entry into force of IFRS 16 and deferred tax liabilities due to positive temporary differences to RPUL.

The current carrying amount of deferred tax assets and liabilities is reviewed at the end of each reporting period. Deferred tax assets and liabilities are treated entirely as non-current. The Group offsets deferred tax assets and liabilities at the level of the capital group and at the level of individual PGE Group companies.