Samsung 2005 Annual Report Download - page 124

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122
The income tax effect of temporary differences, including
available tax credit carryforwards, comprising the deferred
income tax assets and liabilities as of December 31, 2004,
were as follows:
In accordance with the SKFAS No.16, Deferred Income
Tax, the Company changed its accounting policy for the tax
effects of temporary differences which are directly related to
shareholders’ equity. As a result of this change, the amounts
of capital adjustments decreased by \210,876 million and
liabilities increased by \210,876 million. This change had no
effect on the net income.
(in millions of Korean won) Temporary Differences Deferred Income Taxes
Beginning
Balance
Increase
(Decrease)
Ending
Balance
Beginning
Balance
Increase
(Decrease)
Ending
Balance
Deferred tax arising
from temporary differences
Special reserves
appropriated
for tax purposes \(818,423) \(782,066) \(1,600,489) \(200,488) \(239,665) \(440,153)
Equity-method
investments (1,174,510) (277,368) (1,451,878) (152,723) (119,747) (272,470)
Depreciation 48,939 (292,814) (243,875) 7,955 (74,613) (66,658)
Capitalized interest
expense (203,927) 39,824 (164,103) (56,768) 11,640 (45,128)
Accrued income - (533,337) (533,337) - (147,843) (147,843)
Accrued expenses 1,469,128 497,882 1,967,010 367,672 183,711 551,383
Deferred foreign
exchange gains 52,385 (10,388) 41,997 14,761 (3,760) 11,001
Impairment losses
on investments 451,810 64,747 516,557 132,299 10,806 143,105
Others 1,117,188 (434,871) 682,317 65,592 128,942 194,534
\942,590 \(1,728,391) \(785,801) \178,300 \(250,529) \(72,229)
Deferred tax assets arising
from the carryforwards
Undisposed
accumulated deficit \ 401,761 \1,677,759 \2,079,520 \68,397 \112,733 \181,130
Tax credit carryforwards \405,696 \182,193 \587,889 \365,098 \166,747 \531,845
\640,746