HTC 2013 Annual Report Download - page 111

FINANCIAL INFORMATION FINANCIAL INFORMATION
218 219
2012
Opening
Balance
Recognized in
Profit or Loss
Recognized
in Other
Comprehensive
Income Closing Balance
Deferred tax assets
Temporary differences
Allowance for loss on decline in value of inventory
Unrealized profit
Unrealized royalties
Unrealized marketing expenses
Unrealized warranty expense
Unrealized contingent losses on purchase orders
Others
$463,119
173,146
1,981,614
1,686,759
841,847
135,490
77,316
$2,524
192,378
1,004,270
(483,039)
(258,706)
(64,711)
129,761
$-
-
-
-
-
-
903
$465,643
365,524
2,985,884
1,203,720
583,141
70,779
207,980
Investment credit
5,359,291
-
522,477
663,047
903
-
5,882,671
663,047
$5,359,291 $1,185,524 $903 $6,545,718
Deferred tax liabilities
Temporary differences
Defined benefit plans
Financial assets at FVTPL
Unrealized gain on investments
$31,250
43,668
112,551
$3,772
(40,707)
-
$-
-
-
$35,022
2,961
112,551
$187,469 $(36,935) $- $150,534
e. Items for which no deferred tax assets
have been recognized
December
31, 2013
December
31, 2012
January 1,
2012
Loss
carryforward
$466,163 $- $-
Investment
credits
Equipments $- $- $317
Research
and
development
expenditures
- 981,627 3,123,277
$- $981,627 $3,123,594
Deductible
temporary
differences
$4,263,344 $5,283,666 $7,838,956
f. Information about unused loss carry-
forward and tax-exemption
Loss carryforwards as of December 31, 2013
comprised of:
Remaining Carrying Expiry Year
$7,668,179 2023
Under the Statute for Upgrading Industries,
the Company was granted exemption from
corporate income tax for as follows:
Item Exempt from Corporate Income Tax Expiry Year
Sales of wireless and smartphone which
has 3.5G and GPS function
Sales of wireless and smartphone which
has 3.5G and GPS function
2010.01.01-
2014.12.31
2015.01.01-
2018.09.30
g. Unrecognized deferred tax liabilities
associated with investments
As of December 31, 2013, December 31, 2012
and January 1, 2012, the unrecognized deferred
tax liability for all taxable temporary differences
associated with investments in subsidiaries and
investments in jointly controlled entity were
NT$559,255 thousand, NT$297,402 thousand
and NT$588,125 thousand, respectively.
h. Integrated income tax
The imputation credit account ("ICA")
information as of December 31, 2013, December
31, 2012 and January 1, 2012, were as follows:
December 31,
2013
December 31,
2012
January 1,
2012
Unappropriated
earnings
generated
on and after
January 1, 1998
$47,282,820 $53,630,777 $75,687,478
Balance of ICA $6,573,169 $5,966,033 $2,523,575
The actual creditable ratio for distribution of
earnings of 2012 was 13.47%.
Under Income Tax Act, for distribution of
earnings generated after January 1, 1998, the
ratio for the imputation credits allocated to
shareholders of the Company was based on the
balance of the ICA as of the date of dividend
distribution.
i. Income tax assessments
The Company's income tax returns through
2010 had been assessed by the tax authorities.
However, the Company disagreed with the
tax authorities' assessment on its returns for
unappropriated earnings of 2009 and applied
for the administrative remedial. Nevertheless,
under the conservatism guideline, the Company
adjusted its income tax for the tax shortfall
stated in the tax assessment notices.
27. (LOSS) EARNINGS PER SHARE
Unit: NT$ Per Share
For the Year Ended
December 31
2013 2012
Basic (loss) earnings per share $(1.60) $20.21
Diluted (loss) earnings per share $(1.60) $20.12
The (loss) earnings and weighted average
number of ordinary shares outstanding for the
computation of (loss) earnings per share were as
follows:
Net (Loss) Profit for the Years
For the Year Ended
December 31
2013 2012
(Loss) profit for the year $(1,323,785) $16,813,575
Shares
For the Year Ended
December 31
2013 2012
Weighted average number
of ordinary shares used in
computation of basic (loss)
earnings per share
829,082 831,980
Effect of dilutive potential
ordinary shares:
Bonus issue to employees - 3,748
Weighted average number of
ordinary shares used in the
computation of diluted (loss)
earnings per share
829,082 835,728
If the Company might settle the bonuses paid
to employees by cash or shares, the Company
presumed that the entire amount of the bonus
would be settled in shares and the resulting
potential shares should be included in the
weighted average number of outstanding shares
used in the computation of diluted earnings per
share, if the shares had a dilutive effect. Such
dilutive effect of the potential shares was included
in the computation of diluted earnings per share
until the stockholders resolve the number of shares
to be distributed to employees at their meeting in
the following year.