Kia 2005 Annual Report Download - page 111

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111
2005 Annual Report
The difference betw een incom e before tax in financial accounting and taxable incom e pursuant to Corporate Incom e Tax Law of Korea is as follow s :
Description
Korean w on
(In millions)
Translation into U.S.dollars (Note 2)
(In thousands)
2005 2004 2005 2004
Incom e before tax
Tem porary differences
Non-temporary differences
Other adjustm ents
Taxable incom e
689,405
(215,944)
(303,948)
937
170,450
￦
￦
680,558
(213,173)
(300,047)
925
168,263
$
$
840,078
(227,898)
10,893
19,157
642,230
829,297
(224,973)
10,753
18,911
633,988
￦
￦
$
$
The com ponents of deferred tax assets as of Decem ber 31, 2005 are as follow s :
Deferred tax assets of ￦194,194 m illion (US$191,702 thousand) and deferred tax liabilities of ￦1,695 million (US$1,673 thousand) for tem porary differences arising
from investm ents in subsidiaries and associates were not recognized since it is not probable that the tem porary difference w ill be reversed in the foreseeable future. Also,
deferred tax liabilities of ￦87,832 m illion (US$86,705 thousand) were not recognized assuming that tem porary difference arising from equity securities accounted for
using the equity method will be reversed by dividends.
The accum ulated tem porary differences as of December 31, 2005 and 2004 do not include the tem porary differences of ￦261,893 million (US$258,532 thousand) and
￦262,000 million (US$258,638 thousand), respectively, for the gain on revaluation of land, which may not be disposed of in the foreseeable future. Effective tax rate
used in calculating deferred tax assets or liabilities arising from tem porary differences is 27.5% including resident tax.
Description
Korean w on
(In millions)
Translation into U.S.dollars (Note 2)
(In thousands)
Current Non current Current Non current
Allow ance for doubtful accounts
Equity securities accounted for using the equity method
Accrued warranties
Deferred foreign exchange gain
Depreciation
Developm ent cost
Derivative instrum ents
Accrued incom e
Other
Item s credited directly to equity
Carry forw ard of unused tax credits
50,543
—
71,418
—
—
—
—
(4,562)
(18)
—
79,234
196,615
￦
￦
49,894
—
70,501
—
—
—
—
(4,503)
(18)
—
78,218
194,092
$
$
82,116
(202,777)
127,724
(2,150)
1,972
(2,989)
(839)
356
1,884
(10,812)
195,555
190,040
81,062
(200,175)
126,085
(2,122)
1,947
(2,951)
(828)
351
1,860
(10,673)
193,045
187,601
￦
￦
$
$