Asus 2009 Annual Report Download - page 184

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ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
D. The components of deferred income tax assets (liabilities) as of December 31, 2009 and 2008,
were as follows:
2009/12/31 2008/12/31
Deferred income tax assets:
Unrealized sales profit $ 283,562 179,278
Inventory provisions 890,363 1,197,417
Unrealized accrued expense 523,103 790,511
Loss carryforward 480,393 362,390
Investment tax credits 2,145,185 1,576,753
Others 561,232 544,309
Deferred tax assets 4,883,838 4,650,658
Valuation allowance (1,828,144) (1,366,318)
3,055,694 3,284,340
Deferred income tax liabilities:
Income and investment income (overseas) (1,518,182) (2,247,110)
Others (385,581) (26,333)
(1,903,763) (2,273,443)
Net deferred tax assets $ 1,151,931 1,010,897
2009/12/31 2008/12/31
Deferred income tax assets – current $ 2,607,912 2,829,817
Deferred income tax assets – non-current 245,995 427,640
Deferred income tax liabilities – current (415) (16,971)
Deferred income tax liabilities – non-current (1,701,561) (2,229,589)
$ 1,151,931 1,010,897
E. Tax appeals of the Group:
(a) The R.O.C. tax authorities have examined the Company’ s income tax returns through 2007
except for the year 2006. The Company disagreed with the assessment and filed formal tax
appeals for tax returns of years 1997, 1999, and 2000 through 2002. The total amounts of
the assessed additional income tax were recognized in the accompanying statements of
income. These tax appeals were resolved in 2009 and the Company adjusted income tax
expense according to the result thereof. In addition, the income tax return for the year 2005
was examined in 2009, and the Company adjusted income tax expense accordingly. The tax
authorities assessed further the Company for additional income tax of $716,266 for the
years 1996 and 1998. The Company disagreed with the assessment and filed formal tax
appeals. These additional income tax assessments were recognized in the accompanying
statements of income.