Samsung 2005 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2005 Samsung annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

121
The income tax effect of temporary differences, including available
tax credit carryforwards, comprising the deferred income tax assets
and liabilities as of December 31, 2005, are as follows:
(in millions of Korean won) Temporary Differences Deferred Income Taxes
Beginning
Balance
Increase
(Decrease)
Ending
Balance
Beginning
Balance
Increase
(Decrease)
Ending
Balance
Current Non-
Current
Deferred tax arising
from temporary differences
Special reserves
appropriated
for tax purposes \
(1,600,489) \ (453,770) \
(2,054,259) \(440,153) \(123,941) \(564,094) \(110) \(563,984)
Equity-method
investments (1,451,878) 171,335 (1,280,543) (272,470) (14,674) (287,144) - (287,144)
Depreciation (243,875) (377,256) (621,131) (66,658) (117,563) (184,221) (2,494) (181,727)
Capitalized interest
expense (164,103) 24,350 (139,753) (45,128) 6,696 (38,432) - (38,432)
Accrued income (533,337) 83,785 (449,552) (147,843) 24,216 (123,627) (123,296) (331)
Accrued expenses 1,967,010 214,767 2,181,777 551,383 52,312 603,695 557,630 46,065
Deferred foreign
exchange gains 41,997 (15,369) 26,628 11,001 (3,780) 7,221 176 7,045
Impairment losses
on investments 516,557 114,655 631,212 143,105 31,725 174,830 196 174,634
Others 682,317 1,674 683,991 194,534 (40,755) 153,779 77,490 76,289
\(785,801) \(235,829) \(1,021,630) \(72,229) \(185,764) \(257,993) \509,592 \(767,585)
Deferred tax assets arising
from the carryforwards
Undisposed
accumulated deficit \
2,079,520 \
1,282,434 \3,361,954 \181,130 \153,383 \334,513 \15,744 \318,769
Tax credit carryforwards \587,889 \354,613 \942,502 \531,845 \377,959 \909,804 \625,535 \284,269
Deferred tax relating to items
charged to equity
Other capital adjustments - \(757,513) \(757,513) - \(210,876) \(210,876) \7,571 \(218,447)
\775,448 \1,158,442 \(382,994)
The Company periodically assesses its ability to recover deferred
income tax assets. In the event of a significant uncertainty regarding
the Company’s ultimate ability to recover such assets, a valuation
allowance is recorded to reduce the assets to its estimated
realizable value.
The Company did not recognize the income tax effect of a
\411,691 million temporary difference resulting from the
revaluation of land as the Company does not expect cash
inflows from the revalued land.
The Company did not recognize the income tax effect of a
\236,383 million temporary difference resulting from earnings
arising from certain subsidiaries and investments using the equity
method as the Company does not expect cash inflows, such as
proceeds from the disposal of, or receipts of dividends from, the
investments using the equity method within foreseeable future.
In addition, due to the uncertainty regarding ultimate ability to
recover such assets, the Company did not recognize the income
tax effect of a \2,147,616 million temporary difference resulting
from the loss carryforwards.