Kia 2009 Annual Report Download - page 61

REDEFINING
MOBILITY
KIA MOTORS
ANNUAL REPORT
2009

REDEFINING
MOBILITY
KIA MOTORS
ANNUAL REPORT
2009

NOTES TO NONCONSOLIDATED
FINANCIAL STATEMENTS
December 31, 2009 and 2008
(b) The components of income tax expense for the years ended December 31, 2009 and 2008 are summarized as follows: (g) The deferred tax assets and liabilities that are directly charged or credited to accumulated other comprehensive income as of
December 31, 2009 are as follows:
(h) In accordance with SKAS No. 16, the deferred tax amounts should be presented as a net current asset or liability and a net
non-current asset or liability. In addition, the Company is required to disclose aggregate deferred tax assets (liabilities). As of
December 31, 2009, details of aggregate deferred tax assets (liabilities) are as follows:
(c) The charge (benet) for income taxes calculated by applying statutory tax rates to the Company’s taxable income for the year
diers from the actual charge (benet) in the statement of income for the years ended December 31, 2009 and 2008 for the
following reasons:
(d) Deferred tax assets have been recognized as the Company has determined it is probable that future prots will be available
against which the Company can utilize the related benet.
(e) The taxable temporary dierence associated with impairment loss on investments and equity method accounted investments
in respect of which deferred tax assets have not recognized amounted to ￦ 129,980 million and ￦ 181,009 million as of
December 31, 2009, respectively.
(f) The Company did not recognize a deferred tax liability in the amount of ￦164,610 million arising from the taxable temporary
differences associated with equity method accounted investments as of December 31, 2009, since a certain portion of
dividend income is not taxable and it is probable that the temporary dierences will not reverse in the foreseeable future.
In millions of Won 2009 2008
Current ￦ 41,185 55,082
Deferred 242,447 180,805
Charge directly to other comprehensive income (34,315) (281,899)
INCOME TAX CHARGE ￦ 249,317 (46,012)
In millions of Won Deferred tax
Temporary assets
dierences (liabilities)
Unrealized holding gain on equity method accounted investments ￦ (388,696) (80,713)
Unrealized holding loss on equity method accounted investments 54,061 1,087
Change in fair value of available-for-sale securities, net (9) (2)
Eective portion of changes in fair value of cash ow hedges, net 4,030 887
Eective portion of changes resulting from the changes in currency exchange rate of
non-derivative nancial instrument 75,807 16,677
Revaluation surplus (1,288,235) (283,412)
￦ (1,543,042) (345,476)
INCOME BEFORE INCOME TAX ￦ 1,699,577 67,772
Tax at the applicable statutory tax rate 411,298 18,638
Adjustment
Non-taxable income (55,432) (611)
Non-deductible expense 8,790 882
Investment tax credit 39,781 (64,419)
Unrecognized deferred income tax liabilities (94,395) 116,731
Others, net (60,725) (117,233)
ACTUAL INCOME TAXES ￦ 249,317 (46,012)
EFFECTIVE TAX RATE 14.67% -
In millions of Won 2009 2008
In millions of Won Temporary Deferred tax assets (liabilities)
dierences at
December 31, 2009 Current Non-current
ASSETS
Allowance for doubtful accounts ￦ 115,185 27,874 -
Bad debts write-o 256,405 - 56,409
Loss on impairment of investments 310,877 - 787
Provision for warranties 599,131 55,059 81,754
Carryforwards of unused tax credits 284,346 - 372,251
Foreign exchange translation loss, net 177,050 - 38,950
Tax reserve applicable to equity 133,898 - 18,651
Others 1,315,206 82,790 213,297
3,192,098 165,723 782,099
LIABILITIES
Equity in income of equity method accounted investees, net 1,603,939 - 395,385
Tax reserve applicable to equity 1,676,940 - 364,127
Other 866,959 7,884 182,776
4,147,838 7,884 942,288
NET DEFERRED TAX ASSET ￦ (955,740) 157,839 (160,189)