Acer 2010 Annual Report Download - page 57

ACER INCORPORATED 2010 ANNUAL REPORT
110
FINANCIAL STANDING
111
2009 2010
NT$ NT$ US$
Expected income tax 3,745,746 3,285,996 112,805
Effect of different tax rates applied to the Company’s subsidiaries 1,032,938 2,517,974 86,439
Tax-exempt investment income from domestic investees and
unremitted earnings of certain foreign subsidiaries (1,038,244) (1,065,017) (36,561)
Prior-year adjustments 523,617 200,692 6,890
Loss (gain) on disposal of marketable securities not
subject to income tax 124,873 (421,454) (14,468)
Investment tax credits 198,804 (7,534) (259)
Change in valuation allowance (350,794) (985,262) (33,823)
Tax-exempt investment income from operational headquarters (1,604,989) - -
Surtax on unappropriated retained earnings 17,646 384,593 13,203
Impairment loss of land - 69,997 2,403
Deferred tax assets resulting from spin off
adjustment (see note 5(2) (c)) (72,449) - -
Alternative minimum tax 1,417 61,344 2,105
Effect of change in income tax rate 438,368 260,478 8,942
Others 613,190 (90,560) (3,109)
Income tax expense 3,630,123 4,211,247 144,567
(c) The components of deferred income tax assets (liabilities) as of December 31, 2009 and 2010, were as
follows:
December 31,
2009 2010
NT$ NT$ US$
Deferred income tax assets – current:
Inventory provisions 1,058,032 909,065 31,207
Unrealized loss (gain) on valuation of nancial instruments (279,622) 77,521 2,661
Accrued advertising expense 87,747 10,679 367
Unrealized cost of sales 902,570 445,770 15,303
Warranty provision 778,287 910,516 31,257
Allowance for doubtful accounts 118,924 81,667 2,804
Accrued non-recurring engineering cost 58,825 53,277 1,829
Accrued sales allowance 149,501 244,756 8,402
Unused net operating loss carryforwards 143,674 32,024 1,099
Unused investment tax credits 64,027 - -
Unrealized foreign exchange (gains) losses 299,738 (429,652) (14,750)
Others 402,678 496,048 17,029
3,784,381 2,831,671 97,208
Valuation allowance (1,571,166) (1,175,953) (40,369)
2,213,215 1,655,718 56,839
December 31,
2009 2010
NT$ NT$ US$
Deferred income tax liabilities – current:
Inventory provisions (84,598) (86,247) (2,961)
Allowance for doubtful accounts (559,274) (436,658) (14,990)
Unrealized exchange gains (15,078) (2,393) (82)
Others (21,764) (53,442) (1,834)
(680,714) (578,740) (19,867)
December 31,
2009 2010
NT$ NT$ US$
Deferred income tax assets – non-current:
Unrealized investment loss under the equity method 66,861 67,251 2,309
Difference in depreciation for tax and nancial purposes 16,462 478,326 16,420
Unused investment tax credits - 61,876 2,124
Unused net operating loss carryforwards 410,104 7,450,395 255,764
Difference in amortization of intangible assets for tax and
nancial purposes - 511,712 17,566
Unrealized investment loss - 200,993 6,900
Litigation provisions - 54,738 1,879
Others 101,897 155,117 5,325
595,324 8,980,408 308,287
Valuation allowance (387,735) (8,815,824) (302,637)
207,589 164,584 5,650
December 31,
2009 2010
NT$ NT$ US$
Deferred income tax liabilities – non-current:
Difference in amortization of intangible assets for tax and
nancial purposes (3,507,908) - -
Unrealized investment loss under the equity method 740,138 526,069 18,059
Unrealized foreign investment gain under the equity method (3,607,977) (4,062,822) (139,472)
Unused net operating loss carryforwards 13,313,903 - -
Difference in depreciation for tax and nancial purposes 811,822 - -
Accumulated asset impairment loss 245,347 198,443 6,812
Litigation provisions 87,619 - -
Unrealized investment loss 239,877 - -
Foreign currency translation adjustment (237,330) 1,028,224 35,298
Other 257,884 12,951 445
8,343,375 (2,297,135) (78,858)
Valuation allowance (13,887,322) (539,091) (18,506)
(5,543,947) (2,836,226) (97,364)