Movements in deferred taxes were as follows in Fiscal 2019:
| (in millions of euro) | AUGUST 31, 2018 | IFRS 9 IMPACT | SEPTEMBER 1, 2018 | DEFERRED TAX BENEFIT/(EXPENSE) | DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | AUGUST 31, 2019 |
|---|---|---|---|---|---|---|---|
| Employee-related liabilities | Employee-related liabilities AUGUST 31, 2018156 | Employee-related liabilities IFRS 9 IMPACT- | Employee-related liabilities SEPTEMBER 1, 2018156 | Employee-related liabilities DEFERRED TAX BENEFIT/(EXPENSE)(13) | Employee-related liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME(1) | Employee-related liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER(3) | Employee-related liabilities AUGUST 31, 2019140 |
| Fair value of financial instruments | Fair value of financial instruments AUGUST 31, 201815 | Fair value of financial instruments IFRS 9 IMPACT- | Fair value of financial instruments SEPTEMBER 1, 201815 | Fair value of financial instruments DEFERRED TAX BENEFIT/(EXPENSE)(3) | Fair value of financial instruments DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME1 | Fair value of financial instruments CURRENCY TRANSLATION ADJUSTMENT AND OTHER(6) | Fair value of financial instruments AUGUST 31, 20198 |
| Intangible assets | Intangible assets AUGUST 31, 2018(51) | Intangible assets IFRS 9 IMPACT- | Intangible assets SEPTEMBER 1, 2018(51) | Intangible assets DEFERRED TAX BENEFIT/(EXPENSE)13 | Intangible assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME0 | Intangible assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER(4) | Intangible assets AUGUST 31, 2019(42) |
| Other temporary differences* | Other temporary differences *AUGUST 31, 2018(212) | Other temporary differences *IFRS 9 IMPACT(17) | Other temporary differences *SEPTEMBER 1, 2018(229) | Other temporary differences *DEFERRED TAX BENEFIT/(EXPENSE)(26) | Other temporary differences *DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME(4) | Other temporary differences *CURRENCY TRANSLATION ADJUSTMENT AND OTHER8 | Other temporary differences *AUGUST 31, 2019(251) |
| Tax loss carry-forwards | Tax loss carry-forwards AUGUST 31, 201871 | Tax loss carry-forwards IFRS 9 IMPACT- | Tax loss carry-forwards SEPTEMBER 1, 201871 | Tax loss carry-forwards DEFERRED TAX BENEFIT/(EXPENSE)16 | Tax loss carry-forwards DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME0 | Tax loss carry-forwards CURRENCY TRANSLATION ADJUSTMENT AND OTHER6 | Tax loss carry-forwards AUGUST 31, 201993 |
| TOTAL NET DEFERRED TAX | TOTAL NET DEFERRED TAXAUGUST 31, 2018(21) | TOTAL NET DEFERRED TAXIFRS 9 IMPACT(17) | TOTAL NET DEFERRED TAXSEPTEMBER 1, 2018(38) | TOTAL NET DEFERRED TAXDEFERRED TAX BENEFIT/(EXPENSE)(12) | TOTAL NET DEFERRED TAXDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME(3) | TOTAL NET DEFERRED TAXCURRENCY TRANSLATION ADJUSTMENT AND OTHER1 | TOTAL NET DEFERRED TAXAUGUST 31, 2019(52) |
| Of which Deferred tax assets | Of which Deferred tax assetsAUGUST 31, 2018105 | Of which Deferred tax assetsIFRS 9 IMPACT- | Of which Deferred tax assetsSEPTEMBER 1, 2018105 | Of which Deferred tax assetsAUGUST 31, 201999 | |||
| Of which Deferred tax liabilities | Of which Deferred tax liabilitiesAUGUST 31, 2018(126) | Of which Deferred tax liabilitiesIFRS 9 IMPACT(17) | Of which Deferred tax liabilitiesSEPTEMBER 1, 2018(143) | Of which Deferred tax liabilitiesAUGUST 31, 2019(151) |
* Including 248 million euro on goodwill for Fiscal 2019.
Deferred tax assets arising from tax loss carry-forwards and not recognized because their recovery is considered to be uncertain amounted to 170 million euro as of August 31, 2020 (93 million euro as of August 31, 2019), including 19 million euro generated by subsidiaries prior to their acquisition (19 million euro as of August 31, 2019). This significant increase is explained by the non recognition of losses generated within the French Tax Group for 72 million euro.
Temporary differences on employee-related liabilities relate primarily to post-employment benefits.
A provision is recognized if the Group has a legal or constructive obligation at the closing date and it is probable that settlement of the obligation will require an outflow of resources and the amount of the liability can be reliably measured.
Provisions primarily cover commercial, employee-related and tax-related risks and litigation (other than those related to income tax) arising in the course of operating activities, and are measured using assumptions that take account of the most likely outcomes.
Where the effect of the time value of money is material, the amount of the provision is determined by discounting the expected future cash flows at a pre-tax discount rate that reflects current market assessments of the time value of money and any risks specific to the liability.
A provision for onerous contracts is established where the unavoidable costs of meeting the obligations under a contract exceed the economic benefits expected to be received under it.
