Asus 2010 Annual Report Download - page 172

168
(4) The components of deferred income tax assets (liabilities) are as follows:
2010/12/31 2009/12/31
Deferred income tax assets:
Unrealized sales profit $ 238,628 $ 283,562
Unrealized purchase discount 436,231 228,945
Inventory provisions 642,029 890,363
Unrealized accrued expenses 1,023,288 523,103
Loss carryforward 353,898 480,393
Investment tax credits 567,236 2,145,185
Others 588,285 332,287
Deferred tax assets 3,849,595 4,883,838
Valuation allowance ( 840,927)( 1,828,144)
3,008,668 3,055,694
Deferred income tax liabilities:
Investment income recognized under the
equity method (overseas)
( 1,939,835) ( 1,518,182)
Others ( 185,948)( 385,581)
( 2,125,783) ( 1,903,763)
Net deferred tax assets $ 882,885 $ 1,151,931
2010/12/31 2009/12/31
Deferred income tax assets - current $ 1,638,031 $ 2,607,912
Deferred income tax assets - non-current 1,150,216 245,995
Deferred income tax liabilities - current - ( 415)
Deferred income tax liabilities - non-current ( 1,905,362) ( 1,701,561)
$ 882,885 $ 1,151,931
(5) Tax appeals of the Group:
The R.O.C. tax authorities have examined the Company’s income tax returns through
2008 except for the year 2006. The tax authorities assessed the Company for additional
income tax of $870,587 for the years 1996, 1998 and 2008. The Company disagreed with
the assessment and filed formal tax appeals. The additional income tax liability for
these assessments was recognized in the financial statements.
(6) Imputation credit account and creditable ratio
2010/12/31 2009/12/31
ICA balance $ 12,282,090 $ 12,833,212
2010 (expected) 2009 (Actual)
Creditable ratio for earnings distribution 18.07%(Note) 20.34%
Note: Creditable ratio is calculated based on ICA balance plus income tax payable as of
December 31, 2010 divided by the balance of the undistributed earnings after 1998
.
The ratio shall not be higher than the upper limit under Income Tax Act.