Acer 2007 Annual Report Download - page 99

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96
Distribution of 2007 earnings has not been proposed by the board of directors and is still
subject to approval at the stockholders’ meeting. After the resolutions, related information
can be obtained from the public information website.
(19) Net income from discontinued operations
On July 1, 2007, the Company disposed of all its ownership interest in a subsidiary, Sertek Inc.
The operations of Sertek Inc. are classified as discontinued operations. The relevant income
(loss) and cash flow of the discontinued operations were as follows:
2006 2007
NT$ NT$ US$
Net revenues 18,276,621 9,398,700 289,770
Cost of revenues and operating expenses (17,927,037) (9,224,222) (284,390)
Non-operating income and expenses (107,865) (64,502) (1,989)
Income before income taxes 241,719 109,976 3,391
Income tax expense (61,069) (23,120) (713)
Net income from discontinued operations 180,650 86,856 2,678
Gain from disposal of discontinued
operations - 431,010 13,288
Total net income from discontinued
operations 180,650 517,866 15,966
Discontinued operations cash flows:
Cash provided by (used in) operating
activities 1,282,906 (69,408) (2,140)
Cash used in investing activities (4,550) (645) (20)
Cash used in financing activities (1,152,304) (118,307) (3,648)
(20) Earnings per common share (“EPS”)
2006 2007
NT$ NT$
Basic EPS:
Net income 10,218,242 12,958,933
Weighted-average number of shares outstanding
during the year (thousand shares) 2,364,132 2,364,132
Basic EPS (in dollars) 4.32 5.48
(21) Disclosure of financial instruments
(a) Fair values of financial instruments
The book value of short-term financial instruments is considered to be the fair value
because of the short-term nature of these instruments. Such method is applicable to cash
and cash equivalents, notes and accounts receivable (including receivables from related
parties), other receivables, notes and accounts payables (including payables to related
parties), royalties payable, and short-term borrowings.
The estimated fair values and carrying amounts of all other financial assets and liabilities as
of December 31, 2006 and 2007, were as follows: