Deferred tax assets and liabilities relate to the following items:

Deferred tax recognised directly in equity:

Changes in deferred taxes are normally recognised in profit or loss. As an exception from this rule, deferred taxes are recognised directly in equity when they relate to transactions or events that affect net income recognised directly in equity or another equity item. Further information is provided in Note 23, "Shareholders’ Equity".

Deferred tax assets are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits. Demag Cranes AG considers it probable that the recognised deferred tax assets will be utilised.

Consolidated entities have tax loss carryforwards as follows:

Tax losses can be carried forward indefinitely in Germany. Of the foreign loss carryforwards, EUR 11,383,000 (2008/2009: EUR 9,501,000) expire in the next five years and EUR 5,412,000 (2008/2009: EUR 5,001,000) in more than five years. In certain jurisdictions, the utilisation of tax loss carryforwards is limited by minimum taxation rules.

Deferred tax assets recognised by Demag Cranes AG for tax loss carryforwards decrease in future periods as follows unless previously chargeable against current income: