Acer 2005 Annual Report Download - page 57

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- 52 -
4. Significant Account Disclosures
(1) Cash and Cash Equivalents
December 31, 2004 December 31, 2005
NT$ NT$ US$
Cash on hand 142,501 2,741,698 83,499
Cash in banks 13,931,443 19,229,592 585,643
Time deposits 1,607,884 6,278,692 191,220
Investments in short-term commercial
paper and repurchased government bonds
4,877
232,671
7,086
15,686,705 28,482,653 867,448
(2) Short-term Investments
December 31, 2004 December 31, 2005
NT$ NT$ US$
Equity securities 6,143,802 2,932,957 89,324
Mutual funds 9,924,298 3,227,473 98,294
Bonds 104,429 - -
Allowance for decline of short-term
investment
(14,911) (292) (9)
16,157,618 6,160,138 187,609
In 2005, the Consolidated Companies recognized a decline in value of part of its equity
securities amounting to NT$1,470,051 as the fair value of such equity securities has been
continually decreased to some extent and for some periods. The losses were recorded as
“other investment losses” in the accompanying statements of income.
In 2004 and 2005, the Consolidated Companies disposed of portions of short-term investments
and recognized a gain on disposal of investments of NT$3.35 billion and NT$3.43 billion,
respectively, in the accompanying consolidated statements of income.
(3) Notes and Account Receivables
December 31, 2004 December 31, 2005
NT$ NT$ US$
Notes and accounts receivables 34,759,499 64,717,484 1,970,991
Allowance for doubtful accounts (820,383) (855,489) (26,054)
33,939,116 63,861,995 1,944,937
In 2004 and 2005, the Consolidated Companies sold raw material to Taiwan ODMs or their
foreign subsidiaries and purchased back the finished goods after being manufactured by them.
To advoid overstatement of revenues, sales of raw material to OEMs amounting to
NT$53,875,498 and NT$103,324,407, respectively, for the years ended December 31, 2004
and 2005, were excluded from the consolidated revenues. However, the outstanding
receivables and payables resulting from the above-mentioned transactions can not be offset
due to lacking of legally enforceable right. As of December 31, 2004 and 2005, the related
accounts receivables and payables amounted to NT$7,328,797 and NT$16,171,226,
respectively.
As of December 31, 2005, the factored accounts receivable which conformed to the
derecognition criteria were as follows: