Acer 2007 Annual Report Download - page 58

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55
7.4 Financial Statements Consolidated With Subsidiaries Audited by CPAs of
the Recent Year
Independent Auditors’ Report
The Board of Directors
Acer Incorporated:
We have audited the consolidated balance sheets of Acer Incorporated (the “Company”) and
subsidiaries as of December 31, 2006 and 2007, and the related consolidated statements of income,
changes in stockholders’ equity, and cash ows for the years then ended. These consolidated nancial
statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these consolidated nancial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Republic
of China and with the “Regulations Governing Auditing and Certification of Financial Statements
by Certied Public Accountants”. Those standards and regulations require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the nancial statements. An audit also includes assessing the accounting principles used
and signicant estimates made by management, as well as evaluating the overall nancial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated nancial statements referred to in the rst paragraph present fairly,
in all material respects, the nancial position of Acer Incorporated and subsidiaries as of December
31, 2006 and 2007, and the results of their operations and their cash ows for the years then ended, in
conformity with the related nancial accounting standards of the “Business Entity Accounting Act”
and of the “Regulation on Business Entity Accounting Handling”, and accounting principles generally
accepted in the Republic of China.
Effective January 1, 2006, the Company and subsidiaries adopted Republic of China Statement
of Financial Accounting Standards (SFAS) No. 34 “Financial Instruments: Recognition and
Measurement”, SFAS No. 36 “Financial Instruments: Disclosure and Presentation”, the amended SFAS
No. 1 “Conceptual Framework for Financial Accounting and Preparation of Financial Statements”,
and the amended SFAS No. 5 “Long-term Investments under Equity Method”. The effects of those