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Notes to Consolidated
Financial Statements
December 31, 2010 and 2009
(c) Changes in scope of consolidation
The Parent Company is required under K-IFRS to present consolidated financial statements. Changes in the scope of consolidation from
K-GAAP to K-IFRS as of December 31, 2010 are as follows:
Area K-IFRS Current (K-GAAP)
Goodwill
Intangible asset with indefinite
useful life
Financial instrument guarantee
contract
Deferred taxes on investments in
subsidiaries and associates
Deferred income tax
Consolidated Subsidiaries under
K-GAAP
KIA Japan Co., Ltd.
Haevichi Hotel and Resort Jeju
Dongfeng Yueda Kia Motors
Co., Ltd. (DYK)
Goodwill is tested for impairment
annually and gain on bargain purchases
is recognized as profit or loss
An intangible asset with an indefinite
useful life shall not be amortized,
but be subject to regular impairment
testing
Financial instrument guarantee
contracts are recognized at the
present value
Deferred tax asset and liability are
recognized by reflecting the tax
consequences of each temporary
difference
Recognized as non-current assets or
liabilities
Consolidated Subsidiaries under
K-IFRS
-
-
Goodwill is amortized using the straight-line method over its
estimated useful life
Classified as long-term deposits
Not applicable
Deferred tax asset or liability is determined and recognized by the
net amount of temporary differences from each investment
Recognized as current and non-current assets or liabilities based on
expected time of reversal
Difference
Excluded from consolidation considering materity
Excluded from consolidation as holding less than 50%
Independent
Auditors’ Report
Based on a report originally issued in Korean
This report is effective as of February 22, 2011, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report
date and the time of reading this report, could have a material impact on the accompanying non-consolidated financial statements and notes thereto.
Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the
impact of such subsequent events or circumstances, if any.
The Board of Directors and Stockholders Kia Motors Corporation:
We have audited the accompanying non-consolidated statements of financial position of Kia Motors Corporation (the “Company”) as
of December 31, 2010 and 2009 and the related non-consolidated statements of income, appropriation of retained earnings, changes
in equity and cash flows for the years then ended. These non-consolidated financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these non-consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the non-consolidated financial statements referred to above present fairly, in all material respects, the financial position of
Kia Motors Corporation as of December 31, 2010 and 2009 and the results of its operations, the appropriation of its retained earnings,
the changes in its equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the
Republic of Korea.
Without qualifying our opinion, we draw attention to the following:
As discussed in note 2(a) to the non-consolidated financial statements, accounting principles and auditing standards and their application
in practice vary among countries. The accompanying non-consolidated financial statements are not intended to present the financial
position, results of operations, changes in equity and cash flows in accordance with accounting principles and practices generally
accepted in countries other than the Republic of Korea. In addition, the procedures and practices utilized in the Republic of Korea to
audit such non-consolidated financial statements may differ from those generally accepted and applied in other countries. Accordingly,
this report and the accompanying non-consolidated financial statements are for use by those knowledgeable about Korean accounting
principles and auditing standards and their application in practice.
Seoul, Korea
February 22, 2011
110 COMPONENTS OF SUSTAINABLE GROWTH 111
KIA MOTORS ANNUAL REPORT 2010