Kia 2004 Annual Report Download - page 66

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Notes to Non-Consolidated
Financial Statements As of December 31, 2004 and 2003
66
KIA Motors_2004 Annual Report
ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION
The Company maintains its accounts in Korea won. Transactions in foreign currencies are recorded in Korean won based on the prevailing rates of exchange on the
transaction date. Monetary accounts with balances denominated in foreign currencies are recorded and reported in the accompanying non-consolidated financial
statements at the exchange rates prevailing at the balance sheet dates. The balances have been translated using the Basic Rate announced by Seoul Money
Brokerage Services, Ltd., which was ￦1043.80 and ￦1,197.80 to US $1.00 at December 31, 2004 and 2003, respectively, and the translation loss and gain is reflected
in current operations.
INCOME TAX EXPENSE
The Company recognizes deferred income taxes. Accordingly, income tax expense is determ ined by adding or deducting the total incom e tax and surtaxes to be
paid for the current period and the changes in deferred incom e tax debits (credits). The difference between the income tax expense and the amount of incom e tax
show n in the current period s tax return will be offset against the deferred income tax credits (debits), which will occur in subsequent periods.
ORDINARY (NET) INCOME PER COMMON SHARE
Basic ordinary income per com m on share and net income per common share are computed by dividing ordinary and net income available to common
shareholders by the weighted average number of common shares outstanding during the period. Diluted ordinary income per com m on share and net income per
com m on share are com puted by dividing diluted ordinary and net income, which is adjusted by adding back the after-tax am ount of expenses related to diluted
securities, by the weighted average number of common shares and diluted securities, outstanding during the period.
Basic ordinary income per com m on share and net income per common share for years ended December 31, 2004 and 2003 are com puted as follows:
Weighted average number of comm on shares outstanding for the years ended December 31, 2004 and 2003 is computed as follows:
(*) Weighted average number of comm on shares outstanding consists of stock retirem ent and treasury shares acquisition transactions for the purpose of stock
retirement.
690,569
–
690,569
350,245,262
1,972
1,972
￦
￦
￦
2004 2003 2004 2003
769,393
–
769,393
362,335,493
2,123
2,123
￦
￦
￦
661,591
–
661,591
350,245,262
1.89
1.89
＄
＄
＄
737,108
–
737,108
362,335,493
2.03
2.03
＄
＄
＄
Net incom e available to comm on share
Extraordinary item
Ordinary income available to common share
Weighted average number of comm on shares outstanding
Ordinary income per com mon share
Net incom e per com m on share
Korean won
(In millions except per share amounts) U.S. dollars (Note 2)
(In thousands except per share amounts)
358,420,732
(12,500,000)
289,854
366/366
(* )
12/366
2004 2003
Weighted average number of
common shares outstanding
Weight
Number of
shares
Weighted average number of
common shares outstanding
Weight
Number of
shares
368,121,297
(10,000,000)
299,435
358,420,732
(8,184,973)
9,503
350,245,262
365/365
(* )
22/365
368,121,297
(5,803,852)
18,048
362,335,493
Beginning of year
Acquisition of treasury stock
and stock retirement
Stock options, exercised