(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)

Deferred income tax and social contribution arise from temporary differences mainly due to temporarily nondeductible provisions, and are recorded in current and noncurrent assets according to their expected realization.

Deferred income tax and social contribution reflect the tax effects attributable to temporary differences between the tax base of assets and liabilities and their reported amounts in the financial statements. Reported amounts are monthly reviewed.

Deferred income tax and social contribution as of December 31, 2009 and 2008, are as follows:

	Income tax			Social contribution
	2009	2008	01.01.2008	2009	2008	01.01.2008
Temporary differences:
Reserve for contingencies	124,338	97,311	69,228	44,762	35,032	24,922
Accrual for sundry expenses	27,949	24,445	19,010	10,065	8,800	6,843
Write-off of deferred charges	-	-	20,217	-	-	7,278
Adjustment to present value of prepayment of receivables	8,816	-	-	3,174	-	-
Accrual for maintenance of POS equipment	-	-	1,296	-	-	466
Allowance for losses on POS equipment	713	1,133	772	257	408	278
Allowance for losses on deferred expenses	1,416	1,668	4,744	510	601	1,709
Total	163,232	124,557	115,267	58,768	44,841	41,496

Management believes that the deferred assets arising from temporary differences will be realized in proportion to the final resolution of lawsuits and related events. The expected realization of deferred income tax and social contribution is as follows:

2010	58,299
2014	163,701
Total	222,000