Crucial 2012 Annual Report Download - page 268

23
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
(b) The income tax expense calculated at a statutory income tax rate on loss before income tax was reconciled
with the income tax as reported in the accompanying financial statements for the years ended December 31,
2009, 2010 and 2011, as follows:
For years ended December31,
2009 2010 2011
Income tax calculated based on pretax financial loss $ (2,869,232) (1,812,423) (3,570,538)
Expiry (increase in) of income tax credit on purchase
of machinery and equipment 6,582,547 (272,860) 3,349,420
Difference between estimated and actually reported income tax
expense 110 7 (1)
(Decrease) increase in valuation allowance for deferred income tax
assets (5,380,766) 1,035,022 221,001
Effect of changes in income tax rate 1,743,461 1,046,077 —
Prior year income tax adjustment (76,196) 4,064 —
Others 76 113 118
Income tax expense $ — — —
(c) As of December 31, 2010 and 2011, the components of deferred income tax assets or (liabilities) were as
follows:
December 31,
2010 2011
Current deferred income tax assets:
Unused investment tax credit $ 3,975,405 1,610,489
Allowance for inventory devaluation and obsolescence 158,129 252,859
Allowance for uncollectible accounts 553,384 550,442
Unrealized valuation loss on financial assets 37,961 4,599
Unrealized foreign exchange loss — 2,583
Unrealized unallocated overhead and labor 48,177 100,579
Valuation allowance for deterred income tax assets (4,766,185) (2,521,551)
Current deferred income tax assets, net 6,871 —
Current deferred income tax liabilities:
Unrealized foreign exchange gain (6,871) —
Net current deferred income tax assets $ — —
Non-current deferred income tax assets
Unused investment tax credit $ 3,769,573 2,785,069
Loss carry forward 6,925,943 10,322,970
Allowance for impairment loss on fixed and idle assets 29,477 14,227
Unrealized depreciation for tax filing — 56,755
Accrued pension liability 2,884 1,413
Valuation allowance for deferred income tax assets (10,392,339) (12,857,974)
Non-current deferred income tax assets 335,538 322,460
Non-current deferred income tax liabilities
Unrealized foreign exchange gain (13,078) —
Net non-current deferred income tax assets, net $ 322,460 322,460