Annual Report - EDP

notes to the EDP consolidated - Energias de Portugal, and company S.A. financial statementsNotes to for the the Consolidated years and ended Company 31 december Financial Statements 2012 and 2011for the years ended 31 December 2012 and 201123. DEFERRED TAX ASSETS AND LIABILITIESThe EDP Group records the tax effect resulting from temporary differences between the assets and liabilities determined on an accounting basis and on a tax basis,which are analysed as follows:Net Deferred tax assets Net Deferred tax liabilitiesThousands of Euros Dec 2012 Dec 2011 Dec 2012 Dec 2011EuropeTax losses and tax credits 301,906 153,868 - -Provisions 474,694 483,928 5,714 31,081Financial instruments 45,852 54,326 17,956 44,436Tangible and intangible fixed assets 192,061 241,505 139,770 95,903Reinvested gains - - 7,837 8,040Financial and available for sale investments 41,904 76,915 17,235 78,437Tariff adjustments and tariff deficit 33,592 24,000 425,327 218,450Allocation of fair value to assets and liabilities acquired32,391 11,878 628,885 647,148Accounting revaluations - - 113,375 123,485Deferred income relating to CMEC - - 287,656 215,324Other temporary differences 15,484 14,596 20,306 33,078Assets/liabilities compensation of deferred taxes-994,016 -816,936 -994,016 -816,936143,868 244,080 670,045 678,446BrazilTax losses and tax credits 82,005 75,260 - -Provisions 107,692 98,913 - -Allocation of fair value to assets and liabilities acquired - 664 139,731 158,781Accounting revaluations and other temporary differences 6,390 92,497 22,376 98,947196,087 267,334 162,107 257,728United States of America and CanadaTax losses and tax credits 607,466 520,423 - -Property, plant and equipment 2,346 - 297,861 221,980Allocation of fair vs - - 81,288 66,902Gains from institutional partnerships in USA wind farms - - 251,786 271,959Other temporary differences 2,123 22,590 41 -Assets/liabilities compensation of deferred taxes-611,074 -543,013 -611,074 -543,013861 - 19,902 17,828340,816 511,414 852,054 954,002As referred under accounting policies - note 2 r), the compensation between deferred tax assets and liabilities is performed at each subsidiary, and therefore theconsolidated d financial i statements t t reflect in its assets the total t of the deferred d tax of subsidiaries i that t have deferred d tax assets and in its liabilities the total t of thedeferred tax of subsidiaries that have deferred tax liabilities.On a company basis, EDP, S.A. records the tax effect resulting from temporary differences between the assets and liabilities determined on an accounting basis andon a tax basis, which are analysed as follows:Net Deferred tax assets Net Deferred tax liabilitiesThousands of Euros Dec 2012 Dec 2011 Dec 2012 Dec 2011Tax losses and tax credits 61,424 72,626 - -Provisions 3,486 20,756 - -Financial instruments 16,248 22,949 12,829 27,552Financial and available for sale investments 4,030 1,075 - 67,623Property, plant and equipment 11,722 10,350 - -Accounting revaluations - - 13,092 13,021Other temporary differences 3,065 3,039 4,255 4,255Assets/liabilities compensation of deferred taxes-30,176 -112,451 -30,176 -112,45169,799 18,344 - -The deferred tax movement, for the Group and for the Company, in 2012 and 2011 is analysed as follows:Deferred taxesDeferred taxesGroupCompanyThousands of Euros Dec 2012 Dec 2011 Dec 2012 Dec 2011Balance at 1 January -442,588 -340,740 18,344 -67,926Charges to the profit and loss account -128,512 -72,894 106,560 104,392Charges against reserves 67,752 50,365 8,229 19,102Exchange differences and other variations -7,890 -79,319 -63,334 -37,224Balance at 31 December -511,238 -442,588 69,799 18,344On an individual basis, the caption Other temporary differences includes the tax losses charge-off from the subsidiaries of the EDP Sucursal Group for fiscalconsolidation.EDP - Annual Report 2012213