HTC 2014 Annual Report Download - page 135

• Financial information Financial information •
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g. Items that were reclassified to other comprehensive income
For the Year Ended December 31
2014 2013
Exchange differences on translating foreign operations
Exchange differences arising during the year
Reclassification adjustments relating to foreign operations disposed of in the year
$ 903,136
-
$ 1,680,660
(31,248)
$ 903,136 $ 1,649,412
Available-for-sale financial assets
Net fair value (loss) gain on available-for-sale financial assets during the year
Reclassification adjustments relating to available-for-sale financial assets disposed of in
the year
$(146)
-
$ 42
(11,780)
$(146) $ (11,738)
Cash flow hedges
Reclassification adjustments for amounts recognized in profit or loss $ - $ (194,052)
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
In respect of the prior periods
$ 219,434
(95,001)
$ 1,432,715
85,656
124,433 1,518,371
Deferred tax
In respect of the current period 375,947 (390,230)
Income tax recognized in profit or loss $ 500,380 $ 1,128,141
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 $ 1,983,426 $ (195,644)
Income tax calculated at 17%
Effect of expenses that were not deductible in determining taxable profit
Effect of temporary differences
Effect of investment tax credits
Effect of loss carryforward
Effect of income that is exempt from taxation
Additional 10% income tax on unappropriated earnings
Effect of different tax rates of subsidiaries operating in other jurisdictions
Adjustments for prior years’ tax
337,182
74,289
(352,494)
-
(4,803)
(61,983)
-
603,190
(95,001)
-
210,430
(152,462)
(1,126,249)
(2,298)
(501)
1,126,249
987,316
85,656
Income tax recognized in profit or loss $ 500,380 $ 1,128,141
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) $(4,010) $ (1,794)
c. Current tax assets and liabilities
December 31
2014 2013
Current tax assets
Tax refund receivable $ 274,321 $ 238,085
Current tax liabilities
Income tax payable $ 210,714 $ 1,040,128
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:
2014
Opening Balance
Recognized in
Profit or Loss
Recognized
in Other
Comprehensive
Income
Translation
Adjustment Closing Balance
Deferred tax assets
Temporary differences
Unrealized royalties
Unrealized marketing expenses
Unrealized warranty expense
Allowance for loss on decline in value of inventory
Unrealized profit
Unrealized salary and welfare
Unrealized contingent losses on purchase orders
Others
Loss carryforwards
$ 2,429,433
2,338,903
712,434
552,036
302,267
374,925
99,945
405,674
1,449,618
$(816,100)
(419,257)
(108,938)
(77,656)
(92,314)
(174,811)
(23,974)
37,861
1,360,072
$ -
-
-
-
-
-
-
-
-
$ -
1,018
27,472
9,177
-
23,058
-
45,054
(3,190)
$ 1,613,333
1,920,664
630,968
483,557
209,953
223,172
75,971
488,589
2,806,500
$ 8,665,235 $ (315,117) $ - $ 102,589 $ 8,452,707
Deferred tax liabilities
Temporary differences
Unrealized gain on investments
Financial assets at FVTPL
Defined benefit plans
Others
$ 79,450
19,476
15,098
37,098
$ -
9,339
2,001
49,490
$ -
-
(4,010)
-
$ -
-
-
(5,010)
$ 79,450
28,815
13,089
81,578
$ 151,122 $ 60,830 $ (4,010) $ (5,010) $ 202,932