HTC 2014 Annual Report Download - page 107

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• Financial information Financial information •
210 211
23. NET PROFIT (LOSS) FROM
CONTINUING OPERATIONS AND
OTHER COMPREHENSIVE INCOME
AND LOSS
a. Other income
For the Year Ended
December 31
2014 2013
Interest income
Cash in bank
Held-to-maturity financial assets
Loan
$214,092
-
-
$214,746
794
211,139
214,092 426,679
Others 178,669 248,980
$392,761 $675,659
b. Other gains and losses
For the Year Ended
December 31
2014 2013
Net foreign exchange gains $50,904 $482,568
Net gains arising on financial assets
and liabilities classified as held for
trading
240,120
162,297
Ineffective portion of cash flow
hedge
1,939
151,305
Gain on disposal of intangible assets - 110,602
Impairment losses (174,253) (111,085)
Other losses (32,901) (37,678)
$85,809 $758,009
Gain or loss on financial assets and liabilities held for
trading was derived from forward exchange transactions.
The Company entered into forward exchange
transactions to manage exposures related to exchange
rate fluctuations of foreign currency denominated assets
and liabilities.
c. Impairment losses on financial assets
For the Year Ended
December 31
2014 2013
Trade receivables (included in
operating expense)
$-
$991,821
d. Depreciation and amortization
For the Year Ended
December 31
2014 2013
Property, plant and equipment $1,774,782 $1,602,946
Intangible assets 649,887 651,632
$2,424,669 $2,254,578
Classification of depreciation -
by function
Cost of revenues
Operating expenses
$967,355
807,427
$873,928
729,018
$1,774,782 $1,602,946
Classification of amortization -
by function
Cost of revenues
Operating expenses
$-
649,887
$-
651,632
$649,887 $651,632
e. Employee benefits expense
For the Year Ended
December 31
2014 2013
Post-employment benefits
(Note 20)
Defined contribution plans
Defined benefit plans
$381,930
6,595
$428,469
1,128
388,525 429,597
Share-based payments
Equity-settled share-based
payments
244,346
23,443
Other employee benefits 10,493,645 10,529,260
Total employee benefits
expense
$11,126,516
$10,982,300
Classification - by function
Cost of revenues
Operating expenses
$4,413,610
6,712,906
$5,625,526
5,356,774
$11,126,516 $10,982,300
f. Impairment losses on non-financial assets
For the Year Ended
December 31
2014 2013
Inventories (included in cost of
revenues)
$557,580
$439,139
Investments accounted for by
the equity method (included in
other gains and losses)
174,253
-
Intangible assets (including in
other gains and losses)
-
111,085
$731,833 $550,224
24. INCOME TAXES RELATING TO
CONTINUING OPERATIONS
a. Income tax recognized in profit or loss
For the Year Ended
December 31
2014 2013
Current tax
In respect of the current period $44,578 $3,525
Deferred tax
In respect of the current period 3,591 35,053
Income tax recognized in profit or loss $48,169 $38,578
On April 9, 2014, the Ministry of Finance promulgated
the amendments to the Assessment Rules Governing
Income Tax Returns of Profit-Seeking Enterprises, the
Tax Ruling No. 10304540780, and the amendments
apply to the filing of income tax returns for 2013
onwards. The applications of such amendments were
not to have significant effect on current and deferred tax
assets and liabilities for the Company.
The income tax for the years ended December 31, 2014
and 2013 can be reconciled to the accounting profit (loss)
as follows:
For the Year Ended
December 31
2014 2013
Profit (loss) before income tax $1,531,215 $(1,285,207)
Income tax calculated at 17% 260,306 -
Effect of expenses that were
not deductible in determining
taxable profit
54,623
29,858
Share of the profit or loss of
subsidiaries, associates and
joint ventures
(99,899)
182,898
Effect of temporary
differences
(211,439)
(177,703)
Effect of investment tax
credits
-
(1,126,249)
Additional 10% income tax on
unappropriated earnings
-
1,126,249
Overseas income tax 44,578 3,525
Income tax recognized in
profit or loss
$48,169
$38,578
b. Income tax recognized in other
comprehensive income
For the Year Ended
December 31
2014 2013
Deferred tax
Recognized in current year
Actuarial gain and loss (tax benefit)
$(3,980)
$(1,771)
c. Current tax assets and liabilities
December 31
2014 2013
Current tax assets
Tax refund receivable
$45,994
$24,192
Current tax liabilities
Income tax payable
$11,982
$303
d. Deferred tax balances
The movements of deferred tax assets and deferred tax
liabilities for the years ended December 31, 2014 and
2013 were as follows: