82 the balance sheet date, calculated using the actuarial method recommended by IAS 19; • less, if applicable, the fair value of the assets allocated to cover these commitments. Thesemay be represented by an eligible insurance policy. In the event of the obligationbeing fully coveredby a policy that corresponds exactly, both as regards amount and period, to all or part of the benefits payable under the plan, the fair value of the policy is deemed to be the value of the corresponding obligation, (i.e. the amount of the corresponding actuarial liability). Defined-contribution plans There are various mandatory pension schemes to which "employer" companies contribute. The funds are managed by independent organisationsand thecontributingcompanies have no legal or constructive obligation to pay additional contributions if the funds have insufficient assets to cover all benefits corresponding to services renderedby employees during the year and in previous years. As a result, CFM Indosuez Wealth Group has no liability other than the contributions payable for the past financial year. Other long-term benefits Other long-term benefits are those other than postemployment benefits or termination benefits that are to be paid to employees but are not due in full in the twelvemonths following the end of the period in which the corresponding services were rendered. These include, in particular, bonuses and other deferred remuneration payable twelve or moremonths after the end of the period in which they were accrued, but which are not share-indexed. Themethod of assessment is similar to the one used by the Group for post-employment benefits categorised as definedbenefit plans. Current and deferred taxes (IAS 12) In accordance with IAS 12, income tax includes all income taxes, whether current or deferred. IAS 12 defines current tax liability as “the amount of income tax payable (recoverable) in respect of the taxable profit (tax loss) for a reporting period”. Taxable income is the profit (or loss) for a given accounting period according to the rules determined by the tax authorities. The applicable rates and rules used to determine the current tax liability are those in effect in each country where the Group’s companies are established. The current tax liability includes all taxes on income, payable or recoverable, for which payment is not dependent on the completion of future transactions, even if payment is spread over several years. The current tax liabilitymust be recognised as a liability until it is paid. If the amount that has already been paid for the current year and previous years exceeds the amount due for those years, the surplusmust be recognisedunder assets. Moreover, certain transactions carried out by the entitymay have tax consequences that are not taken into account in determining thecurrent tax liability. IAS 12definesadifference between the carrying amount of an asset or liability and its tax base as a temporary difference. The standard requires the recognition of deferred taxes in the following cases: • adeferred tax liability shouldbe recognised for any taxable temporary differences between the carrying amount of an asset or liability on the balance sheet and its tax base, except insofar as the deferred tax liability is generated by: - initial recognition of goodwill; - initial recognition of an asset or liability in a transaction that is not a business combination and that does not affect either the accounting or taxable profit (tax loss) at the transaction date; • a deferred tax assetmust be recognised for all deductible temporary differences between thebook valueof an asset or liability in the balance sheet and its tax base, to the extent that it is considered likely that a taxable profit, against which such deductible temporary differences may be offset, will be available; • a deferred tax assetmust also be recognised for the carry forward of tax losses and unused tax credits to the extent that it is likely that future taxable profits will be available against which such tax losses and unused tax credits may be offset. The tax rates applicable in each country are used as appropriate. Deferred taxes are not discounted TheMonegasque reinvestment regime (suspension of taxes on capital gains made on the disposal of fixed assets): Deferredtax liabilitiesarerecognised inaccordancewithArticle 10 of Sovereign Ordinance no. 3 152 dated 19March 1964: • capital gains realisedbyaMonegasque taxpayingcompany on the sale of operating fixed assets are not included in taxable profits for the year in which they are realised if the company undertakes to reinvest an amount equal to the capital gain plus the cost price of the assets sold in fixed assets within three years of the end of the year in question. • The capital gains excluded from taxable profits are considered as being allocated to the depreciation of new fixed assets and are deducted from the cost price when calculating depreciation and capital gains realised at a later date. The difference between the book value of the new fixed assets and their taxable value meets the definition of “temporary difference” under IAS 12 and justifies the recognition of a deferred tax liability. When unrealised gains on securities are taxable, they do not generate any taxable temporary differences between the carrying amount of the asset and the tax base. As a result,
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