Acer 2007 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2007 Acer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

91
In 2006 and 2007, pension cost under the defined contribution retirement plans amounted to
NT$215,208 and NT$202,278, respectively.
(17) Income taxes
(a) Each consolidated entity should file its own separate income tax return.
(b) The components of income tax expense from continuing operations for the years ended
December 31, 2006 and 2007, were as follows:
2006 2007
NT$ NT$ US$
Current income tax expense 2,654,232 2,726,875 84,072
Deferred income tax (benefit) expense 733,685 (61,297) (1,890)
3,387,917 2,665,578 82,182
(c) The income tax calculated on the pre-tax income from continuing operations at the
Company’s statutory income tax rate (25%) was reconciled with the income tax expense of
continuing operations reported in the accompanying consolidated statements of income as
follows:
2006 2007
NT$ NT$ US$
Expected income tax expense 3,387,077 3,777,159 116,453
Effect of different tax rates applied to the
Company’s subsidiaries 1,631,667 1,786,743 55,087
Tax-exempt investment income from
domestic investees
(865,980) (592,587) (18,270)
Prior year adjustments (98,688) (53,756) (1,657)
Gain on disposal of marketable securities
not subject to income tax (1,438,910) (1,226,553) (37,816)
Investment tax credits 1,002,197 30,696 946
Change in valuation allowance (333,013) (699,088) (21,554)
Unutilized net operating loss carryforwards 375,500 - -
Tax-exempt investment income resulting
from operational headquarters (746,247) (1,132,967) (34,930)
Gain on disposal of land not subject to
income tax 78,750 (29,476) (909)
Alternative minimum tax 219,061 404,858 12,483
Others 176,503 400,549 12,349
Income tax expense 3,387,917 2,665,578 82,182
(d) The deferred income tax assets (liabilities) as of December 31, 2006 and 2007, were as
follows:
December 31, 2006 December 31, 2007
NT$ NT$ US$
Current:
Deferred income tax assets 1,977,846 4,624,566 142,579
Valuation allowance (1,005,132) (2,710,560) (83,568)
Net deferred income tax assets 972,714 1,914,006 59,011
Deferred income tax liabilities (included in
“accrued expenses and other current
liabilities” in the accompanying
consolidated balance sheets)
(566,319) (709,697) (21,881)