Orano - Annual Activity Report 2024 334 6 STATEMENTS Consolidated financial statements - financial year ended December 31, 2024 End-of-lifecycle assets – third party share are not amortized. They are discounted symmetrically with the corresponding provisions. Accretion effects increasing the value of the asset are recorded in a financial income account. They are reduced as the contractual work is performed. 1.3.13.Income tax Income taxes include current tax expense (income) and deferred tax expense (income), calculated in accordance with the tax laws of the countries where the income is taxable. Current tax Current tax assets and liabilities are measured based on the expected amount that will be received from or paid to the tax authorities. Current tax relating to items recognized in equity is also recognized in equity, and not in the statement of income. When the positions it has taken in its tax returns are subject to interpretation, management periodically reviews them, and records provisions accordingly when it deems necessary. Deferred taxes As provided for in IAS 12, deferred tax is determined for all temporary differences between net carrying amounts and the tax basis of assets and liabilities, to which is applied the anticipated tax rate at the time of reversal of these temporary differences, and which has been adopted as of the reporting date. They are not discounted. Temporary taxable differences generate a deferred tax liability. Temporary deductible differences, tax loss carry forwards, and unused tax credits generate a deferred tax asset equal to the probable amounts recoverable in the future. Deferred tax assets are analyzed case by case for recoverability, taking into account the income projections from the group’s strategic action plan. Deferred tax liabilities are recorded for all taxable temporary differences of subsidiaries, associates and joint ventures, unless the group is in a position to control the timing of reversal of the temporary differences, and it is probable that such reversal will not take place in the foreseeable future. Tax accounts are reviewed at the end of each financial year, in particular to take into account changes in tax laws and the likelihood that amounts will be recovered. Deferred tax is recognized in the statement of income, with the exception of that relating to “Other items of comprehensive income”, which is also recorded under “Other items of comprehensive income.” Orano has opted for the recognition in income tax of the contribution on the added value of companies (CVAE) to which its French subsidiaries are subject. Since January 1, 2021, the rate has decreased from 1.5% to 0.75%, then to 0.375% and 0.28% in 2024. As provided in IAS 12, this election requires recognition of deferred taxes on the corresponding temporary differences. Recoverability of deferred tax assets The amount of deferred tax assets is reviewed at each reporting date, and is reduced where necessary if it is no longer probable that future taxable profits will permit the use of all or part of the amount. Similarly, unrecognized deferred tax assets are remeasured at each reporting date and recognized in the amount of the estimated future taxable profits against which they may be charged. The recoverable share of the group’s deferred tax assets is that for which the probability of recovery is higher than 50%. To establish this probability, the group performs a three-step analysis: (a) demonstration of the non-recurring nature of the losses (b) analysis of future earnings prospects, and (c) analysis of tax management opportunities. Regarding the outlook for future income, the probability of future taxable profits to offset losses carried forward is assessed based on income projections from the strategic plan validated by the governance bodies. The estimation of recoverable losses also takes into account the annual regulation on maximum recoverable amounts (50% for France). Offsetting of deferred tax Deferred tax assets and liabilities are offset for each tax entity if the entity is allowed to offset its current tax receivables against its current tax liabilities.
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