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December 31, 2014 and 2013
Notes to the Consolidated
Financial Statements
KIA MOTORS CORPORATION AND SUBSIDIARIES
26. Other Income and Expense
(a) Other income for the years ended December 31, 2014 and 2013 are summarized as follows:
2014 2013
Rent ₩ 11,770
13,422
Foreign exchange transaction gain
258,080
179,020
Foreign exchange translation gain
31,839
22,609
Gain on sale of property, plant and equipment
10,323
10,990
Gain on sale of intangible assets
36
-
Reversal of allowance for doubtful accounts
338
1,359
Reversal of impairment loss on intangible assets
3,040
-
Other income
144,258
149,788
₩ 459,684
377,188
(b) Other expense for the years ended December 31, 2014 and 2013 are summarized as follows:
2014 2013
Foreign exchange transaction loss ₩ 284,582
208,381
Foreign exchange translation loss
253,136
18,491
Loss on disposal of accounts and notes receivable - trade
686
1,142
Donation
26,224
27,138
Loss on sale of property, plant and equipment
41,995
49,100
Loss on sale of intangible assets
138
110
Impairment loss of intangible assets
1,337
2,672
Other expenses
83,440
54,096
₩ 691,538
361,130
27. Income Tax Expense
(a) The component of income tax expense for the years ended December 31, 2014 and 2013 are as follows:
2014 2013
Current tax expense ₩ 725,166
932,809
Origination and reversal of temporary differences
60,471
56,641
Income tax recognized in other comprehensive income
37,086
22,067
₩ 822,723
1,011,517
(b) Income tax benet recognized directly in other equity and other comprehensive income for the years ended December 31, 2014 and 2013 are as follows:
2014 2013
Current tax:
Dened benet plan remeasurements
₩ 51,757
(23,715)
Deferred income tax:
Loss (gain) on valuation of available-for-sale nancial assets
(14,671)
45,782
Income tax recognized directly in other comprehensive income
₩ 37,086
22,067
Income tax related to dened benet plan remeasurements and gains/losses on valuation of available-for-sale nancial assets were recognized in other
comprehensive income.
(c) Reconciliation of effective tax rate for the years ended December 31, 2014 and 2013 are as follows:
2014 2013
Prot before income taxes ₩ 3,816,316 4,828,576
Income tax using statutory tax rates(*) 1,036,084 1,356,277
Adjustment for:
Non-taxable income (74,293) (170,302)
Non-deductible expense 115,636 101,371
Tax credits (324,700) (401,376)
Tax effect for gains/losses on investment
in subsidiaries and associates 151,040 204,000
Others (81,044) (78,453)
Income tax expenses ₩ 822,723 1,011,517
Effective tax rate 21.56% 20.95%
(*) Calculated by multiplying each nation’s statutory tax rate and prot before income taxes on each separate nancial 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.
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Annual Report 2014Financial Review