Kia 2012 Annual Report Download - page 93

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2012 2011
Profit before income taxes ₩ 5,164,056 4,721,650
Income tax using the Company’s statutory tax rate(*) 1,208,553 1,002,275
Adjustment for:
Non-taxable income (70,899) (14,452)
Non-deductible expense 55,487 30,655
Tax credits (248,451) (132,872)
Tax effect for gains/losses on investment in subsidiaries and associates 346,312 290,608
Others 8,350 26,200
Income tax expenses ₩ 1,299,352 1,202,414
Effective tax rate 25.16% 25.47%
(In millions of won)
Income tax related to gain on sale of treasury stock was recognized directly in other equity and income tax related to defined
benefit plan actuarial gains/losses, gains/losses on valuation of available-for-sale financial assets and gains/losses on valuation of
derivative instruments were recognized in other comprehensive income.
(c) Reconciliation of effective tax rate for the years ended December 31, 2012 and 2011 are as follows:
(*) Calculated by multiplying each nation’s statutory tax rate of nations and profit before income taxes on each separated financial statements.
(d) The Company set off a deferred tax asset against a deferred tax liability of the same taxable entity if, and only if, they relate to
income taxes levied by the same taxation authority and the entity has a legally enforceable right to set off current tax assets
against current tax liabilities.
(e) Details of changes in deferred tax assets and liabilities for the year ended December 31, 2012 are as follows:
Other
Beginning balance Profit or loss comprehensive income Ending balance
Allowance for doubtful accounts ₩ 18,853 1,332 - 20,185
Bad debts write-off 59,880 - - 59,880
Accrued expenses 139,702 105,491 - 245,193
Provision of warranty for sale 291,501 30,269 - 321,770
Provision of other long-term
employee benefits 47,746 6,096 - 53,842
Annual leaves 20,498 2,288 - 22,786
Revaluated land (372,219) 5,351 - (366,868)
Depreciation (325,292) 53,450 - (271,842)
Investment in subsidiaries
and associates (850,040) (346,312) - (1,196,352)
Gains/Losses on sales of
investment assets and others (97,031) 20,188 - (76,843)
(In millions of won)
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