As of August 31, 2023, the deferred tax assets arising from tax loss carry-forwards amount to 85 million euros (98 million euros as of August 31, 2022). 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 cumulatively to 194 million euros as of August 31, 2023 (215 million euros as of August 31, 2022). The main country with tax loss carryforwards that did not give rise to the recognition of deferred tax assets as of August 31, 2023, is France where the use of tax losses is unlimited over time. For the French tax group, the amount of unrecognized deferred tax assets arising from loss carryforwards and used in Fiscal 2023 amounts to 5 million euros.
Temporary differences in 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 during 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.
| (in million euros) | AUGUST 31, 2022 | INCREASES/ CHARGES | REVERSALS WITH UTILIZATION | REVERSALS WITHOUT UTILIZATION | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) | AUGUST 31, 2023 |
|---|---|---|---|---|---|---|---|
| Employee claims and litigation | Employee claims and litigation AUGUST 31, 202255 |
Employee claims and litigation INCREASES/ CHARGES 8 |
Employee claims and litigation REVERSALS WITH UTILIZATION (14) |
Employee claims and litigation REVERSALS WITHOUT UTILIZATION (11) |
Employee claims and litigation CURRENCY TRANSLATION ADJUSTMENT AND OTHER 5 |
Employee claims and litigation RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) (1) |
Employee claims and litigation AUGUST 31, 202342 |
| Tax and social security exposures | Tax and social security exposures AUGUST 31, 202232 |
Tax and social security exposures INCREASES/ CHARGES 2 |
Tax and social security exposures REVERSALS WITH UTILIZATION (4) |
Tax and social security exposures REVERSALS WITHOUT UTILIZATION — |
Tax and social security exposures CURRENCY TRANSLATION ADJUSTMENT AND OTHER (1) |
Tax and social security exposures RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) — |
Tax and social security exposures AUGUST 31, 202329 |
| Contract termination and loss-making contracts | Contract termination and loss-making contracts AUGUST 31, 202221 |
Contract termination and loss-making contracts INCREASES/ CHARGES 22 |
Contract termination and loss-making contracts REVERSALS WITH UTILIZATION (5) |
Contract termination and loss-making contracts REVERSALS WITHOUT UTILIZATION (8) |
Contract termination and loss-making contracts CURRENCY TRANSLATION ADJUSTMENT AND OTHER (5) |
Contract termination and loss-making contracts RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) — |
Contract termination and loss-making contracts AUGUST 31, 202325 |
| Client/supplier claims and litigation | Client/supplier claims and litigation AUGUST 31, 202237 |
Client/supplier claims and litigation INCREASES/ CHARGES 7 |
Client/supplier claims and litigation REVERSALS WITH UTILIZATION (8) |
Client/supplier claims and litigation REVERSALS WITHOUT UTILIZATION (13) |
Client/supplier claims and litigation CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Client/supplier claims and litigation RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) — |
Client/supplier claims and litigation AUGUST 31, 202323 |
| Reorganization costs(2) | Reorganization costs (2)AUGUST 31, 202217 |
Reorganization costs (2)INCREASES/ CHARGES 17 |
Reorganization costs (2)REVERSALS WITH UTILIZATION (11) |
Reorganization costs (2)REVERSALS WITHOUT UTILIZATION (3) |
Reorganization costs (2)CURRENCY TRANSLATION ADJUSTMENT AND OTHER (1) |
Reorganization costs (2)RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) — |
Reorganization costs (2)AUGUST 31, 202319 |
| Negative net assets of associates(3) | Negative net assets of associates (3)AUGUST 31, 20228 |
Negative net assets of associates (3)INCREASES/ CHARGES — |
Negative net assets of associates (3)REVERSALS WITH UTILIZATION — |
Negative net assets of associates (3)REVERSALS WITHOUT UTILIZATION — |
Negative net assets of associates (3)CURRENCY TRANSLATION ADJUSTMENT AND OTHER (1) |
Negative net assets of associates (3)RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) — |
Negative net assets of associates (3)AUGUST 31, 20237 |
| Other provisions | Other provisions AUGUST 31, 202244 |
Other provisions INCREASES/ CHARGES 15 |
Other provisions REVERSALS WITH UTILIZATION (8) |
Other provisions REVERSALS WITHOUT UTILIZATION (4) |
Other provisions CURRENCY TRANSLATION ADJUSTMENT AND OTHER 5 |
Other provisions RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) (8) |
Other provisions AUGUST 31, 202344 |
| TOTAL PROVISIONS | TOTAL PROVISIONSAUGUST 31, 2022214 | TOTAL PROVISIONS INCREASES/ CHARGES 71 |
TOTAL PROVISIONS REVERSALS WITH UTILIZATION (50) |
TOTAL PROVISIONS REVERSALS WITHOUT UTILIZATION (39) |
TOTAL PROVISIONS CURRENCY TRANSLATION ADJUSTMENT AND OTHER 2 |
TOTAL PROVISIONS RECLASSIFICATIONS IN LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE OR FOR DISTRIBUTION(1) (9) |
TOTAL PROVISIONSAUGUST 31, 2023189 |
(1) The reclassifications made during the financial year correspond to the reclassification of the provisions of the Benefits & Rewards Services activities (Pluxee) as liabilities directly associated with assets held for sale or for distribution (see note 3.2).
(2) Provisions for reorganization mainly correspond to rationalization costs resulting from the reorganization of the Group.
(3) Investments in companies accounted for using the equity method that have negative net assets (see note 8).
| (in million euros) | AUGUST 31, 2021 | INCREASES/ CHARGES | REVERSALS WITH UTILIZATION | REVERSALS WITHOUT UTILIZATION | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | CHANGES IN SCOPE OF CONSOLIDATION | AUGUST 31, 2022 |
|---|---|---|---|---|---|---|---|
| Reorganization costs | Reorganization costs AUGUST 31, 202167 |
Reorganization costs INCREASES/ CHARGES 9 |
Reorganization costs REVERSALS WITH UTILIZATION (45) |
Reorganization costs REVERSALS WITHOUT UTILIZATION (15) |
Reorganization costs CURRENCY TRANSLATION ADJUSTMENT AND OTHER 2 |
Reorganization costs CHANGES IN SCOPE OF CONSOLIDATION (1) |
Reorganization costs AUGUST 31, 202217 |
| Employee claims and litigation | Employee claims and litigation AUGUST 31, 202156 |
Employee claims and litigation INCREASES/ CHARGES 17 |
Employee claims and litigation REVERSALS WITH UTILIZATION (10) |
Employee claims and litigation REVERSALS WITHOUT UTILIZATION (8) |
Employee claims and litigation CURRENCY TRANSLATION ADJUSTMENT AND OTHER 1 |
Employee claims and litigation CHANGES IN SCOPE OF CONSOLIDATION (1) |
Employee claims and litigation AUGUST 31, 202255 |
| Tax and social security exposures | Tax and social security exposures AUGUST 31, 202130 |
Tax and social security exposures INCREASES/ CHARGES 5 |
Tax and social security exposures REVERSALS WITH UTILIZATION (1) |
Tax and social security exposures REVERSALS WITHOUT UTILIZATION (3) |
Tax and social security exposures CURRENCY TRANSLATION ADJUSTMENT AND OTHER 1 |
Tax and social security exposures CHANGES IN SCOPE OF CONSOLIDATION — |
Tax and social security exposures AUGUST 31, 202232 |
| Contract termination and loss-making contracts | Contract termination and loss-making contracts AUGUST 31, 202127 |
Contract termination and loss-making contracts INCREASES/ CHARGES 6 |
Contract termination and loss-making contracts REVERSALS WITH UTILIZATION (10) |
Contract termination and loss-making contracts REVERSALS WITHOUT UTILIZATION (6) |
Contract termination and loss-making contracts CURRENCY TRANSLATION ADJUSTMENT AND OTHER 4 |
Contract termination and loss-making contracts CHANGES IN SCOPE OF CONSOLIDATION — |
Contract termination and loss-making contracts AUGUST 31, 202221 |
| Client/supplier claims and litigation | Client/supplier claims and litigation AUGUST 31, 202123 |
Client/supplier claims and litigation INCREASES/ CHARGES 22 |
Client/supplier claims and litigation REVERSALS WITH UTILIZATION (10) |
Client/supplier claims and litigation REVERSALS WITHOUT UTILIZATION — |
Client/supplier claims and litigation CURRENCY TRANSLATION ADJUSTMENT AND OTHER 2 |
Client/supplier claims and litigation CHANGES IN SCOPE OF CONSOLIDATION — |
Client/supplier claims and litigation AUGUST 31, 202237 |
| Negative net assets of associates(1) | Negative net assets of associates (1)AUGUST 31, 20216 |
Negative net assets of associates (1)INCREASES/ CHARGES — |
Negative net assets of associates (1)REVERSALS WITH UTILIZATION — |
Negative net assets of associates (1)REVERSALS WITHOUT UTILIZATION — |
Negative net assets of associates (1)CURRENCY TRANSLATION ADJUSTMENT AND OTHER 2 |
Negative net assets of associates (1)CHANGES IN SCOPE OF CONSOLIDATION — |
Negative net assets of associates (1)AUGUST 31, 20228 |
| Other provisions | Other provisions AUGUST 31, 202145 |
Other provisions INCREASES/ CHARGES 11 |
Other provisions REVERSALS WITH UTILIZATION (9) |
Other provisions REVERSALS WITHOUT UTILIZATION (5) |
Other provisions CURRENCY TRANSLATION ADJUSTMENT AND OTHER — |
Other provisions CHANGES IN SCOPE OF CONSOLIDATION 2 |
Other provisions AUGUST 31, 202244 |
| TOTAL PROVISIONS | TOTAL PROVISIONSAUGUST 31, 2021254 | TOTAL PROVISIONS INCREASES/ CHARGES 70 |
TOTAL PROVISIONS REVERSALS WITH UTILIZATION (85) |
TOTAL PROVISIONS REVERSALS WITHOUT UTILIZATION (37) |
TOTAL PROVISIONS CURRENCY TRANSLATION ADJUSTMENT AND OTHER 12 |
TOTAL PROVISIONS CHANGES IN SCOPE OF CONSOLIDATION — |
TOTAL PROVISIONSAUGUST 31, 2022214 |
(1) Investments in companies accounted for using the equity method that have negative net assets (see note 8).
