Asus 2010 Annual Report Download - page 115

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C. The income tax computed on pre-tax financial income at the statutory rate was
reconciled with the income tax expense as follows:
2010/1/1~12/31 2009/1/1~12/31
Income tax calculated on pre-tax financial
income
$ 3,214,508 $ 3,205,183
10% additional income tax on
unappropriated earnings
-628,666
Investment tax credits ( 137,299) ( 471,550)
Estimated tax effect of tax exemption on
investment income, net
( 322,635) ( 1,442,598)
Business operation headquarters income tax
exemption on dividends declared by
investees
- ( 806,620)
Difference between prior years income tax
estimation and assessed results
( 16,321) ( 477,451)
Tax effect resulting from change in income
tax rate
( 21,060) ( 183,843)
Tax-exempt cash dividend ( 57,622) ( 58,750)
Unrealized valuation gain or loss ( 64,051) ( 83,995)
Effect of change in exchange rate ( 173,614) ( 27,667)
Others ( 1,393) 60,329
Income tax expense $ 2,420,513 $ 341,704
D. The components of deferred income tax assets (liabilities) are as follows:
2010/12/31 2009/12/31
Deferred income tax assets:
Unrealized sales profit $ 219,980 $ 240,931
Unrealized purchase discounts 436,231 228,945
Inventory provisions 321,517 477,611
Unrealized accrued expenses 147,767 248,764
Others 51,371 64,689
1,176,866 1,260,940
Deferred income tax liabilities:
Investment income recognized under the
equity method (overseas)
( 1,939,835) ( 1,157,758)
Others ( 126,259) ( 282,115)
( 2,066,094) ( 1,439,873)
($ 889,228) ($ 178,933)
2010/12/31 2009/12/31
Net deferred income tax assets – current $ 1,014,641 $ 1,192,244
Net deferred income tax liabilities –
non-current
( 1,903,869) ( 1,371,177)
($ 889,228) ($ 178,933)