Kia 2001 Annual Report Download - page 33
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Please find page 33 of the 2001 Kia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Financial Statements & Notes
62 63
National Tax Tribunal accepted the Company's assertion and issued its decision for the reassessment of
the Company's prior years' taxable income. Pursuant to the decision of the National Tax Tribunal, the tax
authorities reassessed the Company's tax loss carry forward and determined the deductible amount for
tax loss carry forward as 640,589 million ($483,062 thousand) as of January 1, 2001, after the utiliza-
tion of 98,093 million of tax loss carry forward during fiscal 2000. In prior years, the future tax benefits
from the tax loss carryforward were not recorded by the Company as deferred income tax assets pend-
ing the outcome of the tax litigation. Accordingly, in 2001, the Company recognized the tax benefits from
the reassessed tax loss carry forward as an extraordinary gain in the amount of 197,301 million
($148,783 thousand) (see Note 17). Additionally, in 2001, as a result of the determination of the
deductible amount for tax loss carry forward, the asset revaluation tax amounting to 22,044 million
($16,623 thousand) out of 34,256 million ($25,832 thousand) paid and recorded as other receivables
in 2000 with respect to the asset revaluation in 1999 was refunded to the Company.
Income tax expense in 2001 and 2000 are computed as follows:
The difference between income before tax in financial accounting and taxable income pursuant to Corporate
Income Tax Law of Korea is as follows:
The changes in accumulated temporary difference in 2001 and 2000 and deferred income tax assets as of
December 31, 2001 and 2000 are computed as follows:
(*) The remaining tax loss carry forwards of 169,363 million ($127,715 thousand) are allowed to be uti-
lized until 2003.
The accumulated temporary differences of 1,594,592 million ($ 1,202,467 thousand) and 1,310,873
million ($988,517 thousand) as of December 31, 2001 and 2000 do not include the temporary difference
of 287,050 million ($216,462 thousand) and 297,013 million (223,975 thousand), respectively, for
the gain on revaluation of land which may not be disposed of in the near future. In addition, the accumu-
lated effect of the change of the financial statements of the investments accounted for the equity method
and the temporary differences of 65,867 million (49,670 thousand) arising from charging the
Company's share in investees' cumulative loss to its accumulated deficit were directly adjusted in the
accumulated deficit and excluded from the accumulated temporary differences.
When each temporary difference reverses in the future, it will result in a decrease (increase) of taxable
income and income tax payable. Deferred income tax assets are recognized only when it is probable the
differences will be realized in the future. As of December 31, 2001, the Company believes the tax bene-
fits from accumulated deductible temporary differences, tax loss carry forward, and tax credit carry for-
ward can be realized in the future. In addition, the Company believes average ordinary income in the
coming years will exceed the amount of deferred income taxes which will reverse every year based on
its assessment. Accordingly, the Company has recognized deferred income tax assets of 660,904 mil-
lion arising from accumulated deductible temporary differences, tax loss carry forward, and tax credit
carry forward as of December 31, 2001. The Company has not recognized deferred income tax assets
from tax loss carry forward as of December 31, 2000.
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
17. INCOME TAX EXPENSE AND DEFERRED INCOME TAX ASSETS:
Description 2001 2000 2001 2000
----
(70,453) 102,214 (53,128) 77,079
65,867 - 49,670 -
147,000 - 110,851 -
(73,197) (63,205) (55,197) (47,663)
69,217 39,009 52,196 29,416
Income tax currently payable
Changes in deferred income taxes due to:
Temporary differences
Added to Accumulated Deficits
Tax loss carry forward
Tax credit carry forward
Income tax expense
Korean won (In millions) U.S. dollars (Note 2) (in thousands)
Description 2001 2000 2001 2000
621,452 369,713 468,631 278,797
(355,789) 2,549 (268,297) 1,922
283,719 (331,864) 213,950 (250,256)
(78,156) 57,695 (58,937) 43,507
471,226 98,093 355,347 73,971
(471,226) (98,093) (355,347) (73,971)
-
---
Income before tax
Permanent differences
Temporary differences
Other adjustments
Tax loss carry forward
Taxable income
Korean won (In millions) U.S. dollars (Note 2) (in thousands)
Description 2001 2000 2001 2000
1,310,873 1,642,737 988,517 1,238,773
283,719 (331,864) 213,950 (250,256)
1,594,592 1,310,873 1,202,467 988,517
169,363 - 127,715 -
2,044 - 1,542 -
1,765,999 1,310,873 1,331,724 988,517
29.7 30.8 29.7 30.8
524,502 403,749 395,522 304,463
136,402 63,205 102,860 47,663
660,904 466,954 498,382 352,126
Accumulated temporary difference
Beginning of period, net
Changes in the current year, net
End of period, net
Tax loss carry forward (*)
Other difference
Statutory tax rate (%)
Tax credit carry forward
Deferred income tax assets
Korean won (In millions) U.S. dollars (Note 2) (in thousands)