Acer 2005 Annual Report Download - page 47

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- 42 -
ACER INCORPORATED AND SUBSIDIARIES
Notes to Consolidated Financial Statements
As of and for the years ended December 31, 2004 and 2005
(amounts expressed in thousands of New Taiwan dollars and US dollars,
except for per share information and unless otherwise noted)
1. Reporting Entities of the Consolidated Financial Statements and Their Business Scopes
Acer Sertek Inc. (the “Company”) was incorporated on August 1, 1976, as a company limited by
shares under the laws of the Republic of China (“ROC”). The Company is engaged in the
marketing and sale of IT products and professional electronic services.
For the purpose of integrating resources, expanding business scale, and building up efficiency and
competitiveness, the Company merged with Acer Incorporated (“AI”) on March 27, 2002 and
renamed Acer Incorporated in January 7, 2002. After the merger, the principal activities of the
Company are those related to the sale and marketing of “Acer” brand-name IT products in foreign
and domestic markets. Moreover, to promote E-commerce services, the Company provides
E-commerce solutions to clients.
The reporting entities of the consolidated financial statements included the Company and its
subsidiaries (hereinafter jointly referred to as the “Consolidated Companies”). For the purpose
of preparing the consolidated financial statements, an entity is deemed a subsidiary if the
Company is able to exercise control over its operations and financial policies. On December 31,
2004 and 2005, the number of employees of the Consolidated Conpanies was 6,560 and 6,554,
respectively. The Consolidated Companies are summarized below according to their primary
business activity.
(a) Sale and maintenance of “Acer” brand-name information technology products:
Percentage of
Ownership by the
Company
Investor at December 31,
2004 2005
(1) Acer Incorporated
(2) Acer Greater China (B.V.I.) Corp. (“AGC”,
British Virgin Islands) and its subsidiaries
The Company 100.00 100.00
y Acer Market Services Limited (“AMS”,
Hong Kong)
AGC 100.00 100.00
y Acer Computer (Far East) Ltd. (“AFE”,
Hong Kong)
AGC 100.00 100.00
y Acer Information Products (Zhong Shan)
Inc. (“AIZS”, China)
AMS 100.00 100.00
y Beijing Acer Information Co., Ltd. (“BJAI”,
China)
AMS 100.00 100.00