Vetoquinol - Universal Registration Document - 2021

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 84 Vetoquinol Universal Registration Document 2020 Financial report 6 6.5.17 Net financial items €000 Dec 31, 2020 Dec 31, 2019 Interest income from cash and cash equivalents 623 280 Net gains on sale of cash equivalents - - INCOME FROM CASH AND CASH EQUIVALENTS 623 280 Interest on bonds - - Interest on borrowings and overdrafts (693) (217) Interest on other borrowings - IFRS 16 (134) (165) Interest on finance leases - - GROSS COST OF DEBT (828) (382) NET INCOME FROM CASH AND CASH EQUIVALENTS (204) (102) €000 Dec 31, 2020 Dec 31, 2019 Currency gains 3,131 2,275 Other income 163 174 Other financial income 3,294 2,448 Financial expenses related to employee benefits (42) (81) Currency losses (4,314) (1,869) Other expenses (250) (601) OTHER FINANCIAL EXPENSES (4,607) (2,551) OTHER FINANCIAL INCOME AND EXPENSES (1,312) (103) 6.5.18 Income tax Deferred taxes are recognized on temporary differences between the tax values of assets and liabilities and their book values in the consolidated financial statements. No deferred tax is accounted for if it arises from initial reco- gnition of an asset or liability in a transaction other than a business combination that affects neither accounting profit nor taxable income at the transaction date. No deferred tax liability is recognized on initial recognition of goodwill. Deferred tax is determined using tax rates (and tax regu- lations) that have been adopted or substantially adopted as of the balance sheet date, and that are expected to apply when the related deferred tax asset is realized or the deferred tax liability settled. Deferred tax assets are recognized only to the extent that it is probable that future taxable income, against which the temporary differences can be applied, will be earned. The 2020 tax rate used to calculate deferred taxes for French companies was 28.92% (2019: 32.02%). When the temporary difference is expected to be reversed after 2020, the related deferred taxes are calculated at the rate of 28.92%. The difference from the final income tax rate of 25% is non-material. Income tax expense is broken down as follows: €000 Dec 31, 2020 Dec 31, 2019 Current income tax expense (17,133) (11,634) Deferred tax income/(expense) 499 (830) TOTAL (16,635) (12,464)