HTC 2015 Annual Report Download - page 113

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Financial information
Financial information
222
223
For the Year Ended
December 31
2015 2014
Effect of expenses that were
not deductible in determining
taxable profit $ 22,521 $ 54,623
Share of the profit or loss of
subsidiaries, associates and
joint ventures 232,740 ( 99,899)
Effect of temporary
differences 863,147 ( 211,439)
Effect of loss carryforward 488,274 -
Effect of income that is
exempt from taxation ( 56) -
Adjustments for prior years'
tax ( 2,451) -
Overseas income tax 211 44,578
Income tax (benefit) expense
recognized in profit or loss $( 1,248,476) $ 48,169
(Concluded)
2014
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
Loss carryforward
$ 259,715
302,267
2,429,433
1,629,920
549,713
99,945
367,515
837,428
$( 46,107)
( 92,314)
( 816,101)
( 276,191)
27,419
( 23,975)
26,150
1,208,854
$ -
-
-
-
-
-
-
-
$ 213,608
209,953
1,613,332
1,353,729
577,132
75,970
393,665
2,046,282
$6,475,936 $ 7,735 $ - $6,483,671
Deferred tax liabilities
Temporary differences
Defined benefit plans
Financial assets at FVTPL
Unrealized gain on investments
$ 15,108
19,476
79,450
$ 1,987
9,339
-
$( 3,980)
-
-
$ 13,115
28,815
79,450
$ 114,034 $ 11,326 $(3,980) $ 121,380
b. Income tax recognized in other
comprehensive income
For the Year Ended
December 31
2015 2014
Deferred tax
Recognized in current year
Remeasurement on defined benefit
plan (tax benefit)
$(5,720)
$(3,980)
c. Current tax assets and liabilities
December 31
2015 2014
Current tax assets
Tax refund receivable
$43,707
$45,994
Current tax liabilities
Income tax payable
$12,495
$ 11,982
d. Deferred tax balances
The movements of deferred tax assets and deferred tax liabilities for the years ended December 31, 2015 and 2014 were as follows:
2015
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
Loss carryforward
$ 213,608
209,953
1,613,332
1,353,729
577,132
75,970
393,665
2,046,282
$ 122,586
49,023
( 937,568)
( 306,545)
(4,248)
5,379
109,238
2,109,383
$ -
-
-
-
-
-
-
-
$ 336,194
258,976
675,764
1,047,184
572,884
81,349
502,903
4,155,665
$6,483,671 $ 1,147,248 $ - $7,630,919
Deferred tax liabilities
Temporary differences
Defined benefit plans
Financial assets at FVTPL
Unrealized gain on investments
$ 13,115
28,815
79,450
$ 2,203
( 21,741)
( 79,450)
$(5,720)
-
-
$ 9,598
7,074
-
$ 121,380 $( 98,988) $(5,720) $ 16,672
e. Amounts of deductible temporary differences,
unused carryforward and unused tax credits
for which deferred tax assets have not been
recognized
December 31
2015 2014
Loss carryforward $2,806,460 $ 1,045,579
Deductible temporary
differences $3,207,393 $3,466,830
f. Information about unused loss carry-forward
and tax-exemption
Loss carryforwards as of December 31, 2015 comprised
of:
Remaining Carrying Expiry Year
$ 7,662,140 2023
10,513,823 2024
22,777,716 2025
$ 40,953,679
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 2015.01.01-2018.09.30
g. The aggregate amount of temporary
difference associated with investments for
which deferred tax liabilities have not been
recognized
As of December 31, 2015 and 2014, the taxable temporary
differences associated with investment in subsidiaries
and branch for which no deferred tax liabilities have
been recognized were NT$705,923 thousand and
NT$897,465 thousand, respectively.
h. Integrated income tax
The imputation credit account (“ICA”) information as of
December 31, 2015 and 2014, were as follows:
December 31
2015 2014
Unappropriated earnings
generated on and after January
1, 1998 $21,782,432 $41,381,753
Balance of ICA $ 8,196,056 $ 8,164,935