Mega Bank Annual Report 2017

73 Annual Report 2017 -73- Temporary differences: 2017 US$ January 1 Recognized in profit or loss Recognized in other comprehensive income December 31 Deferred income tax assets Allowance for doubtful accounts in excess of limit $ 87,036 $ 9,913 $ - $ 96,949 Reserve of guarantees in excess of limit 6,732 - - 6,732 Employee benefit liabilities reserve 42,128 ( 1,704 ) 9,975 50,399 Unrealized impairment loss 24,194 ( 150 ) - 24,044 Others 11,550 ( 2,027 ) - 9,523 $ 171,640 $ 6,032 $ 9,975 $ 187,647 Deferred income tax liabilities Land value increment tax ( $ 35,527 ) $ - $ - ( $ 35,527 ) Unrealized exchange gains ( 15,749 ) 980 - ( 14,769 ) Investment income accounted for under the equity method ( 20,250 ) ( 25 ) - ( 20,275 ) Others ( 1,384 ) ( 2,817 ) - ( 4,201 ) ( $ 72,910 ) ( $ 1,862 ) $ - ( $ 74,772 ) Temporary differences: 2016 NT$ January 1 Recognized in profit or loss Recognized in other comprehensive income December 31 Deferred income tax assets Allowance for doubtful accounts in excess of limit $ 1,782,614 $ 797,827 $ - $ 2,580,441 Reserve of guarantees in excess of limit 199,597 - - 199,597 Employee benefit liabilities reserve 1,391,165 ( 232,969 ) 90,837 1,249,033 Unrealized impairment loss 603,109 114,178 - 717,287 Others 376,725 ( 34,279 ) - 342,446 $ 4,353,210 $ 644,757 $ 90,837 $ 5,088,804 Deferred income tax liabilities Land value increment tax ( $ 1,053,300 ) $ - $ - ( $ 1,053,300 ) Unrealized exchange gains ( 464,213 ) ( 2,705 ) - ( 466,918 ) Investment income accounted for under the equity method ( 562,166 ) ( 38,218 ) - ( 600,384 ) Others ( 74,278 ) 33,228 - ( 41,050 ) ( $ 2,153,957 ) ( $ 7,695 ) $ - ( $ 2,161,652 ) D. The Bank’s income tax returns up to 2011 have been assessed by the Tax Authority. The Bank does not agree with the assessment for 2009 and the Company has filed an appeal for reinvestigation of 2009 income tax returns on behalf of the bank. E. With the abolishment of the imputation tax system under the amendments to the Income Tax Act promulgated by the President of the Republic of China in February, 2018, the information on unappropriated retained earnings and the balance of the imputation credit account as of December 31, 2017, as well as the estimated creditable tax rate for the year ended December 31, 2017 is no longer disclosed. As of December 31, 2016, the balance of the imputation tax credit account was $295,554 thousand. The creditable tax rate was 0.88% for the year ended December 31, 2016. (36) Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the parent by the weighted-average number of ordinary shares in issue during the period. For the years ended December 31 2017 2016 NT$ US$ NT$ Weighted-average number of shares outstanding common stock (Unit: Thousand) 8,536,234 8,536,234 Profit attributable to ordinary shareholders of the Bank and subsidiaries $ 21,523,410 $ 725,965 $ 19,009,961 Basic earnings per share (in dollars) $ 2.52 $ 0.08 $ 2.23