Acer 2005 Annual Report Download - page 76

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- 71 -
2004 2005
NT$ NT$ US$
Other 550,966 154,336 4,700
19,724,627 38,518,377 1,173,088
Trading terms with related parties are not significantly different from the terms with
third-party suppliers.
In 2004 and 2005, the Consolidated Companies sold raw material to Wistoron or its
foreign subsidiaries and purchased back the finished goods after being manufactured
by them. To advoid overstatement of revenues, sales of raw material to Wistron or
its foreign subsidiaries amounting to NT$14,899,418 and NT$21,382,152, respectively,
for the years ended December 31, 2004 and 2005, were excluded form 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$0 and NT$5,254,206, respectively.
2. Note and accounts payable to:
December 31, 2004 December 31, 2005
NT$ NT$ US$
Wistron 1,941,866 6,339,952 193,085
AU 505,949 1,969,790 59,991
BQP 131,487 145,565 4,433
SAL 66,280 51,109 1,557
Other 480,685 91,831 2,796
3,126,267 8,598,247 261,862
(3) Management service fees
In 2005, the Company paid iD softcapital Inc. management service fees amounting to
NT$75,738.
(4) Transfer and spin-off of assets
On February 28, 2002, AI spun off its design, manufacturing and services business from
its Acer brand business and transferred related operating assets and liabilities to Wistron.
The receivables resulting from the assets spun off or sold to Wistron amounted to
NT$1,023,388 and NT$687,867 as of December 31, 2004 and 2005, respectively.
(5) Loans to related parties
The Consolidated Companies made a loan to related parties in 2004 as follows:
Highest balances during the period Balance as of
Amount
Month Interest Rate December 31, 2004
NT$ NT$
iD5 31,917 12 3％ 31,917
The loan had been repaid in 2005 and there were no other such loans in 2005.
(6) Advances to/from related parties
The Consolidated Companies paid certain expenses on behalf of related parties.
Additionally, related parties paid certain expenses and accounts payable on behalf of the
Consolidated Companies. As of December 31, 2004 and 2005, the Consolidated
Companies had aggregate receivables from related parties of NT$16,834 and NT$36,635,
respectively, and payables to related parties of NT$227,541 and NT$73,366, respectively,
resulting from these transactions.