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Financial statements

CONSOLIDATED FINANCIAL STATEMENTS

5

Note 16.3. Details of deferred tax (Balance Sheet)

(in million of euros) Dec. 2011

77 21 53 151 30 86 -116 35 Dec. 2012

Timing differences between company profit and taxable profit 70 Timing differences between consolidated profit and company profit 23 Recognized tax losses 54

SUB-TOTAL, DEFERRED TAX ASSETS 147

Timing differences between company profit and taxable profit 66 Timing differences between consolidated profit and company profit 85 Recognized tax losses 5

SUB-TOTAL, DEFERRED TAX LIABILITIES 156

DEFERRED TAX ASSETS, NET (LIABILITIES) (9)

Note 16.4. Unrecognized deferred tax assets

Unrecognized deferred tax assets at December 31, 2012 amounted to €784 million (December 31, 2011: €360 million which €201 million corresponding to tax loss carryforwards and temporary differences related to the US Economy Hotels business). The increase for the year reflected:

a the €442 million impact of tax losses accumulated by the US Economy Hotels business prior to its sale in 2012 (see note 2.A.1). Under American group relief rules, Accor retains the benefit of these tax loss carryforwards;

a the €82 million impact of tax losses generated by the final ruling against Accor SA in connection with the CIWLT tax dispute, which has resulted in Accor having the right to a tax deduction in Belgium (see note 39).

Unrecognized deferred tax assets at December 31, 2012 will expire in the following periods if not utilized:

Deductible temporary Tax loss (in million of euros) differences carryforwards Tax credits Total

Y+1 -7 -7

Y+2 -404

Y+3 -404

Y+4 -28 028

Y+5 and beyond 6 561 3 570

Evergreen 29 142 -171

DEFERRED TAX, NET 35 746 3 784

In accordance with IAS 12, deferred tax assets are recognized for ordinary and evergreen tax loss carryforwards only to the extent that it is probable that future taxable profits will be available against which the assets can be utilized. The Group generally estimates those future profits over a five-year period, and each year reviews the projections and assumptions on which its estimates are based, in accordance with the applicable tax rules.