HTC 2015 Annual Report Download - page 140

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Financial information
Financial information
276
277
g. Gain or loss on foreign currency exchange
For the Year Ended December 31
2015 2014
Foreign exchange gains
Foreign exchange losses
$ 9,191,220
(8,562,146)
$ 8,647,918
(7,792,506)
$ 629,074 $ 855,412
27. INCOME TAXES RELATING TO CONTINUING OPERATIONS
a. Income tax (benefit) expense recognized in profit or loss
For the Year Ended December 31
2015 2014
Current tax
In respect of the current period
Adjustments for prior periods
$ 336,419
( 26,242)
$ 219,434
( 95,001)
310,177 124,433
Deferred tax
In respect of the current period (358,649) 375,947
Income tax (benefit) expense recognized in profit or loss $( 48,472) $ 500,380
The income tax (benefit) expense for the years ended December 31, 2015 and 2014 can be reconciled to the accounting (loss) profit
as follows:
For the Year Ended December 31
2015 2014
(Loss) profit before income tax $(15,581,540) $ 1,983,426
Income tax calculated at 17%
Effect of expenses that were not deductible in determining taxable profit
Effect of temporary differences
Effect of loss carryforward
Effect of income that is exempt from taxation
Effect of different tax rates of subsidiaries operating in other jurisdictions
Adjustments for prior years' tax
( 2,648,862)
68,650
772,747
1,260,570
( 56)
524,721
( 26,242)
337,182
74,289
( 352,494)
( 4,803)
( 61,983)
603,190
( 95,001)
Income tax (benefit) expense recognized in profit or loss $( 48,472) $ 500,380
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) $( 5,813) $(4,010)
c. Current tax assets and liabilities
December 31
2015 2014
Current tax assets
Tax refund receivable $212,033 $274,321
Current tax liabilities
Income tax payable $163,252 $ 210,714
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
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
$1,613,333
1,920,664
630,968
483,557
209,953
223,172
75,971
488,589
2,806,500
$( 937,569)
( 589,877)
( 4,373)
( 70,224)
49,023
( 92,959)
5,379
66,749
1,836,841
$ -
-
-
-
-
-
-
-
-
$ -
( 7,494)
( 676)
( 2,297)
-
2,878
-
( 775)
( 8,011)
$ 675,764
1,323,293
625,919
411,036
258,976
133,091
81,350
554,563
4,635,330
$8,452,707 $ 262,990 $ - $(16,375) $8,699,322
Deferred tax liabilities
Temporary differences
Unrealized gain on investments
Financial assets at FVTPL
Defined benefit plans
Others
$ 79,450
28,815
13,089
81,578
$( 79,450)
( 21,741)
2,164
3,368
$ -
-
(5,813)
-
$ -
-
-
( 4,109)
$-
7,074
9,440
80,837
$ 202,932 $( 95,659) $(5,813) $( 4,109) $ 97,351
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