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DANONE Consolidated financial statements 2019 62 
Tax assets and liabilities 
RISK IDENTIFIED 
OUR RESPONSE 
Danone operates in many different tax jurisdictions throughout the 
world. Consequently, the Company and its subsidiaries may be subject 
to audits or questioning by local tax authorities. The situations where 
outflows of resources are considered probable give rise to liabilities 
measured on the basis of facts known in the jurisdiction concerned. As 
indicated in Note 1.3 of the Notes to the consolidated financial 
statements, the first-time application of IFRIC 23, Uncertainty over 
Income Tax Treatments, resulted in the recognition of additional tax 
liabilities for an amount of €93 million, as a deduction from equity at 
January 1, 2019. 
As indicated in Note 15 of the Notes to the consolidated financial 
statements, liabilities for tax risks, including territorial risks, amounted to 
€734 million as of December 31, 2019. 
As of 31 December 2019, the amount of 306 million euros is recognized 
in the consolidated balance sheet in respect of the deferred tax assets 
relating to tax loss carryforwards as set out in Note 9.3 of the Notes to 
the consolidated financial statements. The recoverability of these 
deferred tax assets resulting from tax loss carryforwards is based 
primarily on the ability of the entities concerned to meet their targets 
defined in the business plans drawn up by management. 
The recognition of tax assets and liabilities and liabilities for tax risks 
constitutes a key audit matter, given (i) the judgment required to assess 
the recoverability of deferred taxes and (ii) the probable outflows of 
resources related to tax disputes. 
We examined the procedures implemented within the 
Group to identify the main tax risks, as well as 
management’s assessments of these risks. 
We also relied on the opinions of third parties, past and 
current experience with the tax authorities in the 
jurisdictions concerned, and the expertise of our tax 
specialists in order to assess the assumptions used by 
management to determine the liabilities for tax risks, in