Kia 2013 Annual Report Download - page 56

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For the years ended December 31, 2013 and 2012
(b) Other expense for the years ended December 31, 2013 and 2012 are summarized as follows:
 
Foreign exchange transaction loss ₩208,381 203,764
Foreign exchange translation loss 18,491 17,666
Loss on disposal of accounts and notes receivable - trade 1,142 769
Donation 27,138 22,092
Loss on sale of property, plant and equipment 49,100 34,196
Loss on sale of intangible assets 110 303
Impairment loss of intangible assets 2,672 2,910
Loss on inventory scrap - 23,568
Other expenses 54,096 75,996
₩361,130 381,264
(In millions of won)
(c) Reconciliation of effective tax rate for the years ended December 31, 2013 and 2012 are as follows:
 
Profit before income taxes ₩4,828,576 5,164,056
Income tax using statutory tax rates (*) 1,356,277 1,208,553
Adjustment for:
Non-taxable income (170,302) (70,899)
Non-deductible expense 131,371 55,487
Tax credits (401,376) (248,451)
Tax effect for gains/losses on investment
in subsidiaries and associates 204,000 346,312
Others (78,453) 8,350
Income tax expenses ₩1,011,517 1,299,352
Effective tax rate 20.95% 25.16%
(In millions of won)
(b) Income tax benefit recognized directly in other equity and other comprehensive income for the years ended December 31, 2013 and
2012 are as follows:
Income tax related to defined benefit plan remeasurements, gains/losses on valuation of available-for-sale financial assets and gains/
losses on valuation of derivative instruments were recognized in other comprehensive income.
 
Current tax:
Defined benefit plan remeasurements ₩(23,715) 49,746
Deferred income tax:
Loss (gain) on valuation of available-for-sale financial assets 45,782 (40,560)
Gain on valuation of derivative instruments - (1,770)
45,782 (42,330)
Income tax recognized directly in other comprehensive income ₩22,067 7,416
(In millions of won)
26. Income Tax Expense
(a) The component of income tax expense for the years ended December 31, 2013 and 2012 are as follows:
 
Current tax expense ₩932,809 997,765
Origination and reversal of temporary differences 56,641 294,171
Income tax recognized in other comprehensive income 22,067 7,416
Total income tax expense ₩1,011,517 1,299,352
(In millions of won)
(*) Calculated by multiplying each nation’s statutory tax rate of nations and profit before income taxes on each separate 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, 2013 are as follows:
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 
Allowance for doubtful accounts ₩20,185 (2,839) - 17,346
Bad debts write-off 59,880 - - 59,880
Accrued expenses 245,193 (24,712) - 220,481
Provision of warranty for sale 321,770 47,215 - 368,985
Provision of other long-term employee benefits 53,842 (2,474) - 51,368
Annual leaves 22,786 3,171 - 25,957
Revaluated land (366,868) 7,537 - (359,331)
Depreciation (271,842) 8,099 - (263,743)
Investment in subsidiaries and associates (1,196,352) (204,000) - (1,400,352)
Gains/Losses on sales of investment assets and others (76,843) 19,671 - (57,172)
Valuation of available-for-sale financial assets (176,741) - 45,782 (130,959)
Operating loss carryforward 2,390 (2,138) - 252
Others 106,059 48,047 - 154,106
₩(1,256,541) (102,423) 45,782 (1,313,182)
(In millions of won)
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