Acer 2008 Annual Report Download - page 47

Acer Incorporated 2008 Annual Report90
Financial Standing
Acer Incorporated 2008 Annual Report 91
In October 2007, the Company reduced its investment in Apacer to an ownership interest of less than
50% and no longer held a controlling interest in Apacer. Consequently, Apacer was excluded from the
consolidated nancial statements, and the investments in Apacer were accounted for using the equity method.
The Consolidated Companies continuously decreased their ownership in Apacer in 2008, and thus had no
signicant inuence over Apacer’s operating and nancial policies. Commencing on August 1, 2008, the
investments in Apacer were reclassied as “nancial assets carried at cost ‒ noncurrent”.
Commencing from December 31, 2007, the Consolidated Companies decreased their ownership interest
in HiTRUST.COM and thus had no significant influence over HiTRUST.COM’s operating and financial
policies. Consequently, the equity investments in HiTRUST.COM were reclassified as “financial assets
carried at cost ‒ noncurrent”.
In 2007, the Consolidated Companies sold portions of their investments in Wistron, Apacer, HiTRUST.
COM, and other investees, and an aggregate gain of NT$1,834,450 was recognized from these sales.
In 2008, the Company sold portions of their investment in Wistron, and recognized a disposal gain of
NT$1,441,906.
In 2008, the Consolidated Companies recognized liquidation loss of NT$7,262 on EB EASY (TWN) Corp.
The loss was recorded under “other investment loss” in the accompanying consolidated income statements.
The Company’s capital surplus was reduced by NT$169,810 and NT$78,255 in 2007 and 2008, respectively,
as a result of recognizing changes in investees’ equity accounts or disposal of equity-method investments.
(11) Available-for-sale nancial assets ‒ noncurrent
December 31, 2007 December 31, 2008
NT$ NT$ US$
Qisda Corporation (“Qisda”) 2,655,514 520,718 15,867
Silicon Storage Technology Inc. (“Silicon”) 10,571 8,192 249
Yosun Industrial Corp. 704,762 386,660 11,782
RoyalTek Co., Ltd. - 93,390 2,846
Quanta Computer Inc. -151,527 4,617
3,370,847 1,160,487 35,361
The Company sold all its ownership interest in a subsidiary, Sertek Inc., on July 1, 2007. The price
included cash consideration and stock consideration amounting to 27,000,000 shares of Yosun Industrial
Corp. Through the acquisition of E-Ten Information System Co., Ltd. in September 2008, the Consolidated
Companies increased their investment in RoyalTek Co., Ltd. and Quanta Computer Inc.
In 2007, the Consolidated Companies sold portions of their investments in Qisda, Silicon and other investees,
and an aggregate gain of NT$109,491 was recognized from these sales. In 2008, no disposal activities
occurred.
(12) Property, plant and equipment
The Company’s subsidiary ACI sold the ofce building located in Singapore in March 2008, with a disposal
gain of NT$788,944. Additionally, the Company’s subsidiary Gateway disposed of computer equipment and
machinery in 2008 with a loss of NT$269,057. The gain and loss were netted and recorded under “gain on
disposal of property and equipment, net” in the accompanying consolidated income statements.
(13) Property not in use
December 31, 2007 December 31, 2008
NT$ NT$ US$
Leased assets ‒ land 818,630 807,538 24,607
Leased assets ‒ buildings 2,855,547 2,827,810 86,166
Damaged ofce premises 457,558 457,558 13,942
Property held for sale and development 1,761,173 1,391,260 42,393
Others - 29,019 884
Less: Accumulated depreciation (543,805) (570,088) (17,371)
Accumulated asset impairment (1,543,000) (1,946,376) (59,308)
3,806,103 2,996,721 91,313
Damaged office premises are office premises that suffered fire damage. As of December 31, 2008 the
Consolidated Companies concluded that the possibility for the damaged ofce premises to be fully repaired
was remote; hence, the repair cost accrual of NT$161,308, recorded in “other current liabilities” in the
accompanying consolidated balance sheet as of December 31, 2007, was reclassied as accumulated asset
impairment, and an additional impairment loss of NT$221,931 was recognized.
For certain land acquired, the registered ownership has not been transferred to the land acquirer, APDI,
a subsidiary of the Company. To protect APDI’s interests, APDI has obtained signed contracts from the
titleholders assigning all rights and obligations related to the land to APDI. Additionally, the land title
certicates are held by APDI, and APDI has registered its liens thereon.
(14) Intangible assets
Goodwill Patents Trademarks Customer
Relationships Others Total
NT$ NT$ NT$ NT$ NT$ NT$
Balance at January 1, 2007 244,328 171 - - 152,183 396,682
Additions - 415,701 - - 78,168 493,869
Acquisitions 16,654,264 1,116,481 5,504,220 1,551,042 570,729 25,396,736
Disposal - (120) - - (3,410) (3,530)
Translation adjustment (7,876) 553 73 494 3,356 (3,400)
Amortization -(59,074) (6,054) (40,457) (248,279) (353,864)
Balance at December 31, 2007 16,890,716 1,473,712 5,498,239 1,511,079 552,747 25,926,493
Additions - 89,177 - - 80,147 169,324
Acquisitions 5,520,031 -2,634,244 151,100 1,871,300 10,176,675
Disposal (32,532) - - - (4,339) (36,871)
Reclassication - (727,381) - - (453,200) (1,180,581)
Translation adjustment 195,825 (20,326) (32,122) 11,722 (14,327) 140,772
Amortization - (122,344) (32,805) (156,552) (137,346) (449,047)
Balance at December 31, 2008 22,574,040 692,838 8,067,556 1,517,349 1,894,982 34,746,765