(26) Tax assets

In 2006, deferred taxes were also recognised directly in equity. € 152 m (2005: € 56 m) was debited to the available-for-sale reserve and € 56 m (2005: € 29 m) was credited to the cash flow hedge reserve.

In addition, as actuarial gains and losses on pension and severance-payment obligations were not recognised in income in the reporting year, deferred tax assets of € 8 m were offset against equity in BA-CA AG.

As a result of the first-time consolidation of the subsidiaries and sub-groups referred to in note 2, and of foreign currency translation of deferred taxes and direct offsetting against reserves, part of the change in deferred taxes was not reflected in the expense.

The assets include deferred tax assets arising from the carryforward of unused tax losses in the amount of € 284 m (2005: € 282 m). Most of the tax losses carried forward can be used without time restriction.

In respect of tax losses carried forward in the amount of € 668 m (2005: € 650 m), no deferred tax assets were recognised because, from a current perspective, a tax benefit is unlikely to be realised within a reasonable period.