Movements in deferred taxes were as follows in Fiscal 2020 :
| (in millions of euro) | AUGUST 31, 2019 | IFRIC 23 IMPACT | SEPTEMBER 1, 2019 | DEFERRED TAX BENEFIT/ (EXPENSE) | DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | AUGUST 31, 2020 |
|---|---|---|---|---|---|---|---|
| Employee-related liabilities | Employee-related liabilities AUGUST 31, 2019140 |
Employee-related liabilities IFRIC 23 IMPACT— |
Employee-related liabilities SEPTEMBER 1, 2019140 |
Employee-related liabilities DEFERRED TAX BENEFIT/ (EXPENSE)31 |
Employee-related liabilities DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME(9) |
Employee-related liabilities CURRENCY TRANSLATION ADJUSTMENT AND OTHER(11) |
Employee-related liabilities AUGUST 31, 2020151 |
| Fair value of financial instruments | Fair value of financial instruments AUGUST 31, 20198 |
Fair value of financial instruments IFRIC 23 IMPACT— |
Fair value of financial instruments SEPTEMBER 1, 20198 |
Fair value of financial instruments DEFERRED TAX BENEFIT/ (EXPENSE)(5) |
Fair value of financial instruments DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— |
Fair value of financial instruments CURRENCY TRANSLATION ADJUSTMENT AND OTHER(1) |
Fair value of financial instruments AUGUST 31, 20202 |
| Intangible assets | Intangible assets AUGUST 31, 2019(42) |
Intangible assets IFRIC 23 IMPACT— |
Intangible assets SEPTEMBER 1, 2019(42) |
Intangible assets DEFERRED TAX BENEFIT/ (EXPENSE)11 |
Intangible assets DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— |
Intangible assets CURRENCY TRANSLATION ADJUSTMENT AND OTHER1 |
Intangible assets AUGUST 31, 2020(30) |
| Goodwill | Goodwill AUGUST 31, 2019(248) |
Goodwill IFRIC 23 IMPACT— |
Goodwill SEPTEMBER 1, 2019(248) |
Goodwill DEFERRED TAX BENEFIT/ (EXPENSE)4 |
Goodwill DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— |
Goodwill CURRENCY TRANSLATION ADJUSTMENT AND OTHER45 |
Goodwill AUGUST 31, 2020(199) |
| Other temporary differences | Other temporary differences AUGUST 31, 2019(3) |
Other temporary differences IFRIC 23 IMPACT— |
Other temporary differences SEPTEMBER 1, 2019(3) |
Other temporary differences DEFERRED TAX BENEFIT/ (EXPENSE)51 |
Other temporary differences DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME10 |
Other temporary differences CURRENCY TRANSLATION ADJUSTMENT AND OTHER(20) |
Other temporary differences AUGUST 31, 202038 |
| Tax loss carry-forwards | Tax loss carry-forwardsAUGUST 31, 201993 |
Tax loss carry-forwardsIFRIC 23 IMPACT(6) |
Tax loss carry-forwardsSEPTEMBER 1, 201987 |
Tax loss carry-forwardsDEFERRED TAX BENEFIT/ (EXPENSE)(4) |
Tax loss carry-forwardsDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— |
Tax loss carry-forwardsCURRENCY TRANSLATION ADJUSTMENT AND OTHER(6) |
Tax loss carry-forwardsAUGUST 31, 202077 |
| TOTAL NET DEFERRED TAX | TOTAL NET DEFERRED TAXAUGUST 31, 2019(52) | TOTAL NET DEFERRED TAXIFRIC 23 IMPACT(6) | TOTAL NET DEFERRED TAXSEPTEMBER 1, 2019(58) | TOTAL NET DEFERRED TAXDEFERRED TAX BENEFIT/ (EXPENSE)88 | TOTAL NET DEFERRED TAXDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME1 | TOTAL NET DEFERRED TAXCURRENCY TRANSLATION ADJUSTMENT AND OTHER7 | TOTAL NET DEFERRED TAXAUGUST 31, 202039 |
| Of which Deferred tax assets | Of which Deferred tax assetsAUGUST 31, 201999 | (6) | Of which Deferred tax assetsIFRIC 23 IMPACT93 | Of which Deferred tax assetsSEPTEMBER 1, 2019— | Of which Deferred tax assetsDEFERRED TAX BENEFIT/ (EXPENSE)— | Of which Deferred tax assetsDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— | Of which Deferred tax assetsCURRENCY TRANSLATION ADJUSTMENT AND OTHER137 |
| Of which Deferred tax liabilities | Of which Deferred tax liabilitiesAUGUST 31, 2019(151) | Of which Deferred tax liabilitiesIFRIC 23 IMPACT— | Of which Deferred tax liabilitiesSEPTEMBER 1, 2019(151) | Of which Deferred tax liabilitiesDEFERRED TAX BENEFIT/ (EXPENSE)— | Of which Deferred tax liabilitiesDEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME— | Of which Deferred tax liabilitiesCURRENCY TRANSLATION ADJUSTMENT AND OTHER— | Of which Deferred tax liabilitiesAUGUST 31, 2020(97) |
As of August 31, 2021 , the deferred tax assets arising from tax loss carry-forwards amount to 97 million euro (77 million euro as of August 31, 2020 ). Brazil and Germany are the main countries with tax loss carry-forwards recognized (for those countries, the use of tax loss carry-forwards is unlimited). The recoverability of the deferred tax assets arising from tax loss carry-forwards is assessed based on a business plan performed at the level of each tax jurisdiction.
Unrecognized deferred tax assets arising from tax loss carry-forwards because their recovery is considered to be uncertain amounted to 192 million euro as of August 31, 2021 (170 million euro as of August 31, 2020 ), including 10 million euro generated by subsidiaries prior to their acquisition (19 million euro as of August 31, 2020 ). France is the main country with unrecognized deferred tax assets on tax loss carry-forwards. Unrecognized deferred tax assets arising from tax losses generated within the French tax group in Fiscal 2021 amount to 39 million euro.
Temporary differences on employee-related liabilities relate primarily to post-employment benefits.
A provision is recognized ifthe 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.
