Kia 2002 Annual Report Download - page 35

2002 KIA MO TO RS AN N UAL REPORT
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Financial Statements & Notes
Pursuant to the decision of the National Tax Tribunal, the tax authorities reassessed the Company’s tax loss carry forw ard and determined the deductible
amount for tax loss carry forw ard as 640,589 million ($533,646 thousand) as of January 1, 2001, after the utilization of 98,093 million ($81,717
thousand) of tax loss carry forw ard during fiscal 2000. In prior years, the future tax benefits from the tax loss carryforw ard w ere not recorded by the
Company as deferred income tax assets pending the outcome of the tax litigation. Accordingly, in 2001, the Company recognized the tax benefits from
the reassessed tax loss carry forw ard as an extraordinary gain in the amount of 197,301 million ($164,363 thousand) (see Note 17). Additionally, in
2001, as a result of the determination of the deductible amount for tax loss carryforw ard, out of 34,256 million ($28,537 thousand) paid and recorded
as other receivables in 2000 w ith respect to the asset revaluation in 1999, the asset revaluation tax amounting to 22,044 million ($18,363 thousand)
w as refunded to the Company.
17. INCOM E TAX EXPENSE AND DEFERRED INCOM E TAX ASSETS
Income tax expense in 2002 and 2001 are computed as follow s:
The difference betw een income before tax in financial accounting and taxable income pursuant to Corporate Income Tax Law of Korea is as follow s:
NOTES TO NON-CONSOLIDATED FINANCIAL STATEM ENTS DECEM BER 31, 2002 AND 2001
The changes in accumulated temporary difference in 2002 and 2001 and deferred income tax assets as of December 31, 2002 and 2001 are computed
as follow s:
The accumulated temporary differences as of December 31, 2002 do not include the temporary differences of 278,562 million ($232,058 thousand)
for the gain on revaluation of land, w hich may not be disposed of in the near future. In addition, in 2001, the deferred income tax effect of 65,867
million ($54,871 thousand) on the temporary differences arising from the cumulative effect of the change of the financial statements of the investments
accounted for using the equity method and charging the Company’s share in investees’ cumulative loss to its accumulated deficit w ere directly adjusted
in the accumulated deficit.
When each temporary difference reverses in the future, it w ill result in a decrease (increase) of taxable income and income tax payable. Deferred income
tax assets are recognized only w hen it is probable that the differences w ill be realized in the future.
18. DIVIDENDS
The computation of the proposed dividends for 2002 is as follow s:
NOTES TO NON-CONSOLIDATED FINANCIAL STATEM ENTS DECEM BER 31, 2002 AND 2001
Description 2002 2001 2002 2001
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
Income tax currently payable 105,370 -87,779 -
Changes in deferred income taxes due to:
Temporary differences 12,269 (70,453) 10,221 (58,691)
Added to Accumulated Deficits - 65,867 - 54,871
Tax loss carry forw ard 50,301 147,000 41,904 122,459
Tax credit carry forw ard (8,009) (73,197) (6,672) (60,977)
Income tax expense 159,931 69,217 133,231 57,662
Description 2002 2001 2002 2001
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
Income before tax 801,310 621,452 667,536 517,704
Permanent differences 12,493 (355,789) 10,407 (296,392)
Temporary differences (39,267) 283,719 (32,712) 236,354
Other adjustments 23,227 (78,156) 19,349 (65,109)
797,763 471,226 664,581 392,557
Tax loss carry forw ard (169,363) (471,226) (141,089) (392,557)
Taxable income 628,400 -523,492 -
Description 2002 2001 2002 2001
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
Accumulated temporary difference
Beginning of period, net 1,594,592 1,310,873 1,328,384 1,092,030
Changes in the current year, net (39,267) 283,719 (32,712) 236,354
End of period, net 1,555,325 1,594,592 1,295,672 1,328,384
Tax loss carry forw ard - 169,363 - 141,089
Other difference - 2,044 - 1,702
1,555,325 1,765,999 1,295,672 1,471,175
Statutory tax rate (% ) 29.7 29.7 29.7 29.7
461,932 524,502 384,815 436,940
Tax credit carry forw ard 144,411 136,402 120,302 113,630
Deferred income tax assets 606,343 660,904 505,117 550,570
Number of Korean won U.S. dollars(Note 2)
Shares Dividend rate (in millions) (in thousands)
Common shares, net of treasury shares 368,121,297 5% 92,030 76,666