Acer 2007 Annual Report Download - page 95

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92
December 31, 2006 December 31, 2007
NT$ NT$ US$
Non-current:
Deferred income tax asset 4,589,737 16,652,016 513,397
Valuation allowance (4,506,829) (16,586,178) (511,367)
Net deferred income tax assetsЁ
noncurrent (included in “deferred
charges and other assets” in the
accompanying consolidated balance
sheets)
82,908 65,838 2,030
Deferred income tax assets 359,808 1,567,019 48,313
Deferred income tax liabilities (2,619,916) (6,686,393) (206,147)
Net deferred income tax liabilities (2,260,108) (5,119,374) (157,835)
Total deferred income tax assets 6,927,391 22,843,601 704,289
Total deferred income tax liabilities (3,186,235) (7,396,090) (228,028)
Total valuation allowance (5,511,961) (19,296,738) (594,935)
(e) The components of deferred income tax assets (liabilities) as of December 31, 2006 and
2007, were as follows:
December 31, 2006 December 31, 2007
NT$ NT$ US$
Deferred income tax assets:
Investment loss recognized by the
equity method 939,187 109,017 3,361
Allowance for doubtful accounts 113,136 226,718 6,990
Net operating loss carryforwards 3,163,338 14,879,372 458,744
Investment tax credits 747,783 702,539 21,660
Accrued advertising expense 222,240 319,702 9,857
Accrued non-recurring engineering cost 117,298 102,485 3,160
Accrued cost of sales 74,179 78,029 2,406
Accrued restructuring cost 18,669 184,435 5,685
Accrued royalty - 707,627 21,817
Accrued purchase discounts 11,346 631,360 19,465
Inventory provisions 218,591 631,109 19,459
Warranty provisions 285,244 867,643 26,750
Provision for asset impairment loss 397,742 332,569 10,253
Loss on valuation of financial
instruments 395,487 622,140 19,181
Unrealized exchange gains (267,062) (201,717) (6,219)
Difference in depreciation for tax and
financial purposes (968) 954,883 29,440
Other 491,181 1,695,690 52,280
6,927,391 22,843,601 704,289
Deferred income tax liabilities:
Investment income recognized by the
equity method 2,627,738 2,777,678 85,638
Difference in intangible assets for tax
and financial purposes - 3,596,148 110,872
Other 558,497 1,022,264 31,518
3,186,235 7,396,090 228,028
(f) The domestic Consolidated Companies were granted investment tax credits for investment
in certain high-tech industries, for the purchase of automatic machinery and equipment, for
research and development expenditures, and for employee training expenditures. These
credits may be applied over a period of five years. The amount of the credit that may be
applied in any year is limited to 50% of the income tax payable for that year, but there is no
limitation on the amount of investment tax credit that may be applied in the final year.