LG 2004 Annual Report Download - page 104

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
21. Capital Adjustments
Capital adjustments as of December 31, 2004 and 2003, consist of the following:
The Company has retained treasury stocks consisting of 793,208 shares (2003 : 194,953 shares) of common stock and 4,680 shares
(2003 : 4,678 shares) of preferred stock as of December 31, 2004. The Company intends to either grant these treasury stocks to
employees and directors as compensation, or to sell them in the future.
Treasury stock
Gain on valuation of equity method investment securities
Gain (loss) on (from) valuation of available-for-sale securities
Loss from disposal of treasury stock
(in millions of Korean won)
2004
(46,657)
299,877
7,812
-
261,032
2003
(8,977)
163,609
(92,012)
(62)
62,558
The reconciliations from income before income taxes to taxable income for the years ended December 31, 2004 and 2003, are as
follows: (in millions of Korean won)
2004
1,860,126
(34,646)
61,675
38,270
(1,180,816)
61,694
(30,080)
41,652
817,875
(67,202)
750,673
Income before income taxes
Temporary differences:
Allowance for doubtful accounts
Product warranty reserve
Amortization of intangible assets
Equity method investment securities
Deferred income of investment securities
Duty drawback
Others
Permanent differences
Taxable income
2003
836,800
(80,514)
4,782
53,122
(448,201)
302,506
(25,471)
76,046
719,070
32,307
751,377
22. Income Taxes
Income tax expense for the years ended December 31, 2004 and 2003, are as follows:
Current income taxes
Deferred income taxes
Income taxes added to shareholders’ equity
Income tax expense
(in millions of Korean won)
2004
146,352
144,963
22,857
314,172
2003
185,718
(17,557)
5,815
173,976