Page 63 - 2024 CPC Corporation,Taiwan

Current taxes include tax payables and tax deduction receivables on taxable gains (losses) for the year calculated using the statutory tax rate on the reporting date or the actual legislative tax rate, as well as tax adjustments related to prior years.
Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases.
A deferred tax asset is recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profit will be available against which the unused tax losses, unused tax credits, and deductible temporary differences can be utilized. Such unused tax losses, unused tax credits, and deductible temporary differences are also revaluated every year on the financial reporting date, and adjusted based on the probability that future taxable profit will be available against which the unused tax losses, unused tax credits, and deductible temporary differences can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in associates, except where the Company can control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the temporary differences and they are expected to reverse in the foreseeable future.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
(r) Investment property
In order to reasonably reflect the fair value of the Company’s investment properties, and to cope with future financial risks by providing more relevant and reliable financial reports, the Company passed a resolution of the Board of Directors on February 15, 2023, that the subsequent measurement of investment properties will be changed to fair value model. Accounting policies related to the fair value model for subsequent measurement of investment properties have been adopted since January 1, 2023.
In accordance with the provisions of International Accounting Standard No. 8 “Accounting Policies, Changes in Accounting Estimates and Errors”, this accounting policy should be applied retrospectively to the restated comparative information.
Effect of changes in accounting policies
36,008,532 3,420,363 32,588,169
Effect of changes in accounting policies
56,720,637 6,697,917 50,022,720
January 1, 2022 Balance Sheets
Reporting amounts
Reporting amounts after restatement
55,226,750
88,203,200 157,368,453
Reporting amounts after restatement
82,888,031
91,165,051 (11,487,394)
Financial Statements ●
Investment properties Deferred tax liabilities Retained earnings
before restatement
$ 19,218,218 84,782,837 124,780,284
December 31, 2022 Balance Sheets Reporting amounts
Investment properties Deferred tax liabilities Retained earnings (note 12(b))
before restatement
$ 26,167,394 84,467,134 (61,510,114)
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