Kia 2003 Annual Report Download - page 78

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NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
▶DECEMBER 31, 2003 AND 2002
78 Kia Motors Corporation
18. INCOM E TAX EXPENSE AND DEFERRED INCOM E TAX ASSETS :
Income tax expense in 2003 and 2002 is 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 2003 and 2002 and deferred income tax assets as of December 31, 2003 and 2002 are
computed as follows :
The accumulated temporary differences as of December 31, 2003 do not include the temporary differences of ￦272,036 million (US$227,113
thousand) for the gain on revaluation of land, which may not be disposed of in the near future.
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 that the differences will be realized in the future.
Effective tax rate of 27.5% including resident tax surcharges is applied to temporary differences expected to be realized after 2005 as such
change in corporate tax rate has been announced on December 30, 2003, which resulted in decrease in deferred tax assets by ￦15,567 million
(US$12,996 thousand).
2003 2002 2003 2002
Korean won (in millions) U.S. dollars (Note 2) (in thousands)
Income tax currently payable
Changes in deferred income taxes due to:
Temporary differences
Tax loss carry forward
Tax credit carry forward
Income tax expense
159,178
1,678
-
(12,680)
148,176
105,370
12,269
50,301
(8,009)
159,931
132,892
1,401
-
(10,586)
123,707
87,970
10,243
41,994
(6,686)
133,521
￦
￦
￦
￦
＄
＄
＄
＄
2003 2002 2003 2002
Korean won (in millions) U.S. dollars (Note 2) (in thousands)
Income before tax
Permanent differences
Temporary differences
Other adjustments
Tax loss carry forward
Taxable income
853,599
5,385
46,764
594
906,342
-
906,342
801,310
12,493
(39,267)
23,227
797,763
(169,363)
628,400
712,639
4,496
39,042
495
756,672
-
756,672
668,985
10,430
(32,783)
19,392
666,024
(141,396)
524,628
￦
￦
￦
￦
＄
＄
＄
＄
2003 2002 2003 2002
Korean won (in millions) U.S. dollars (Note 2) (in thousands)
Accumulated temporary difference
Beginning of period, net
Changes in the current year, net
End of period, net
Statutory tax rate (% )
Tax credit carry forward
Deferred income tax assets
1,555,325
46,764
1,602,089
29.7/27.5
460,254
157,091
617,345
1,594,592
(39,267)
1,555,325
29.7
461,932
144,411
606,343
1,298,484
39,042
1,337,526
29.7/27.5
384,249
131,150
515,399
1,331,267
(32,783)
1,298,484
29.7
385,650
120,564
506,214
￦
￦
￦
￦
￦
￦
＄
＄
＄
＄