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
Deferred income tax assets and liabilities from tax effect of temporary differences including available tax credit carryforwards and
undisposed accumulated deficit as of December 31, 2007, were as follows:
(In millions of Korean won)
Temporary Differences Deferred Income Tax Asset (Liabilities)
Beginning Increase Ending Beginning Increase Ending
Balance (Decrease) Balance Balance (Decrease) Balance Current Non-Current
Deferred tax arising from temporary differences
Special reserves
appropriated for
tax purposes
￦
(2,042,850)
￦
587,286
￦
(1,455,564)
￦
(561,784)
￦
161,504
￦
(400,280)
￦
(36,667)
￦
(363,613)
Equity-method
investments and
others (2,627,490) (1,470,337) (4,097,827) (395,923) (112,792) (508,715) - (508,715)
Depreciation (865,817) 496,575 (369,242) (256,028) 132,543 (123,485) 1,598 (125,083)
Capitalized interest
expense (126,786) 77,068 (49,718) (34,866) 21,193 (13,673) - (13,673)
Accrued income (223,414) 13,701 (209,713) (61,157) 3,580 (57,577) (57,155) (422)
Allowance (technical
expense, others) 2,356,597 128,622 2,485,219 653,549 37,601 691,150 648,569 42,581
Deferred foreign
exchange gains 24,112 (3,153) 20,959 6,506 (666) 5,840 472 5,368
Impairment losses
on investments 532,066 (23,916) 508,150 149,489 (9,948) 139,541 425 139,116
Others 1,049,223 66,755 1,115,978 254,048 4,644 258,692 169,502 89,190
￦
(1,924,359)
￦
(127,399)
￦
(2,051,758)
￦
(246,166)
￦
237,659 (8,507) 726,744 (735,251)
Deferred tax assets arising from the carryforwards
Undisposed
accumulated
deficit
￦
3,353,235
￦
(126,967)
￦
3,226,268
￦
246,060
￦
60,263 306,323 20,090 286,233
Tax credit
carryforwards
￦
1,341,941
￦
(101,330)
￦
1,240,611
￦
988,122
￦
(196,903) 791,219 787,929 3,290
Deferred tax relating to items charged to equity
￦
(1,283,947)
￦
(2,278,554)
￦
(3,562,501)
￦
(355,117)
￦
(399,886) (755,003) (1,456) (753,547)
￦
334,032
￦
1,533,307
￦
(1,199,275)
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
Temporary differences, whose deferred tax effects were not recognized due to the uncertainty regarding ultimate realizability such assets, as of
December 31, 2008 and 2007, are as follows:
(In millions of Korean won)
1. It is uncertain that the temporary differences arising from the revaluation of the land are realizable as it is uncertain that the land will be disposed in the
foreseeable future.
2. The Company does not expect cash inflows, such as proceeds from the disposal of, or receipts of dividends from earnings arising from certain subsidiaries
and equity method investments within the foreseeable future.
Ⅰ. Deductible temporary differences
Equity-method investments and others 2
￦
588,783
￦
422,188
Undisposed accumulated deficit 1,700,465 2,235,756
Tax credit carryforwards 305,227 413,966
Others 50,383 161,308
Ⅱ. Taxable temporary differences
Land revaluation1 (397,985) (398,538)
Equity-method investments and others 2 (2,924,351) (1,807,196)
Others (201) (344)
2008 2007