(1) Where a domestic corporation reports to the head of the tax office having jurisdiction over the place of tax payment the change of the evaluation method of inventory assets from the last-in first-out method prescribed by Presidential Decree to other evaluation methods of inventory assets prescribed by Presidential Decree for the business year in which it first applies the K-IFRS, the amount deducting the amount referred to in subparagraph 2 from the amount referred to in subparagraph 1 (hereafter in this Article, referred to as "evaluation marginal profits of inventory assets") need not be included in the gross income for the purpose of calculating the amount of income for the relevant business year. In such cases, the evaluation marginal profits of inventory assets shall be equally divided and be included in the gross income for five years from the start date of the business year following the business year during which the K-IFRS are first applied: <Amended on Dec. 24, 2018>
1. Evaluated value of the inventory assets as at the beginning of the business year in which the K-IFRS are first applied;
2. Evaluated value of the inventory assets as at the end of the immediately preceding business year in which the K-IFRS are first applied.
(2) Where a domestic corporation that fails to include the evaluation marginal profits in the gross income pursuant to the former part of paragraph (1) excluding its subparagraphs is dissolved (excluding a dissolution due to a qualified merger in Article 44 (2) and (3) or a qualified division in Article 46 (2)), any remainder after being included in the gross income under the latter part of paragraph (1) excluding its subparagraphs shall be included in gross income when calculating the amount of income for the business year in which the registration date of the dissolution falls. <Amended on Dec. 24, 2018>
(3) Matters necessary for procedures for reporting the change of the evaluation method for inventory assets, the application for non-inclusion in gross income, the method of inclusion in gross income and the non-inclusion of the evaluation marginal profits of inventory assets in the gross income shall be prescribed by Presidential Decree. <Amended on Dec. 24, 2018>[This Article Added on Dec. 31, 2011][Title Amended on Dec. 24, 2018]