Acer 2009 Annual Report Download - page 47

Deferred credits of long-term equity investments represent the unamortized balance of deferred gains and losses
derived from the sale of equity investment among the afliated companies. Such deferred gains and losses are
realized upon disposal of the equity-method investments to non-consolidated entities.
In 2008, the Consolidated Companies invested NT$73,841 in FuHu Inc. In 2009, the Consolidated Companies
invested in Olidata S.p.A. and increased investment in FuHu Inc. for an aggregate amount of NT$244,702.
Commencing on August 1, 2008, the Consolidated Companies lost the ability to exercise signicant inuence
over Apacer’s operating and nancial policies. Therefore, the investments in Apacer were reclassied as “nancial
assets carried at cost ‒ noncurrent”.
In 2008, the Company sold portions of its investment in Wistron and recognized a gain thereon of NT$1,441,906.
In 2009, the Consolidated Companies sold all of their investments in The Eslite Bookstore and recognized an
aggregate loss thereon of NT$5,455.
The Consolidated Companies recognized an investment loss of NT$7,263 in 2008 and an investment gain of
NT$4,236 in 2009 due to liquidation of EB EASY (TWN) Corp. and Hungtung Venture Capital, respectively.
The loss was recorded under “other loss” and the gain was recorded under “other gain” in the accompanying
consolidated statements of income.
The Consolidated Companies’ capital surplus was increased (reduced) by NT$(78,255) and NT$180,899 in 2008
and 2009, respectively, as the Consolidated Companies did not make additional investments proportionally to
the issuance of new shares by the investee companies or the Consolidated Companies recognized changes in
investees’ equity accounts in proportion to its ownership percentage.
(10) Available-for-sale nancial assets ‒ noncurrent
December 31, 2008 December 31, 2009
NT$ NT$ US$
Investment in publicly listed stock:
Qisda Corporation (“Qisda”) 520,718 1,606,215 50,147
Silicon Storage Technology Inc. (“Silicon”) 8,192 8,938 279
Yosun Industrial Corp. 386,660 844,416 261363
RoyalTek Co., Ltd. 93,390 539,319 16,838
Quanta Computer Inc. 151,527 307,854 9,612
1,160,487 3,306,742 103,239
In September 2008, the Consolidated Companies invested in RoyalTek Co., Ltd. and Quanta Computer Inc.
through the acquisition of E-Ten.
In 2009, the Consolidated Companies sold portions of their investments in Yosun Industrial and recognized a
gain thereon of NT$57,894. In 2008, no disposal activities occurred.
As of December 31, 2008 and 2009, the unrealized gain (losses) resulting from re-measuring available-for-
sale financial assets to fair value amounted to NT$(1,456,066) and NT$1,001,919, respectively, which were
recognized as a separate component of stockholders’ equity.
(11) Property, plant and equipment
The Company’s subsidiary, ACI, sold its ofce building located in Singapore in March 2008, with a disposal
gain of NT$788,944. Additionally, the Company’s subsidiary, Gateway Inc., disposed of computer equipment
and machinery in 2008 with a disposal loss of NT$269,057. The net gain was recorded under “gain/loss on
disposal of property and equipment, net” in the accompanying consolidated statements of income.
The Company’s subsidiary, Gateway Inc., disposed of computer equipment and machinery in 2009, and
recognized a loss from disposal of NT$102,532 classied under “loss on disposal of property and equipment,
net” in the accompanying consolidated statements of income. Additionally, in 2009, the Consolidated Companies
recognized an impairment loss of NT$395,109 for the buildings and improvements of the E-Ten and Gateway
Inc., as the recoverable amount was less than the carrying amount of such assets.
(12) Property not used in operation
December 31, 2008 December 31, 2009
NT$ NT$ US$
Leased assets ‒ land 807,538 807,538 25,212
Leased assets ‒ buildings 2,827,810 2,827,810 88,286
Damaged ofce premises 457,558 463,181 14,461
Property held for sale and development 1,391,260 1,415,014 44,178
Others 29,019 - -
Less: Accumulated depreciation (570,088) (595,606) (18,595)
Accumulated impairment (1,946,376) (1,946,395) (60,768)
2,996,721 2,971,542 92,774
Damaged office premises are office premises damaged by fire. As of December 31, 2008 the Consolidated
Companies concluded that the possibility for the damaged office premises to be fully repaired was remote;
hence, the accrual for repair cost of NT$161,308, recorded under “other current liabilities”, was reclassied as
accumulated asset impairment, and an additional impairment loss of NT$221,931 was recognized in 2008.
For certain land acquired, the ownership registration has not been transferred to the land acquirer, APDI, a
subsidiary of the Company. To protect APDI’s interests, APDI has obtained signed contracts from the titleholders
assigning all rights and obligations related to the land to APDI. Additionally, the land title certicates are held by
APDI, and APDI has registered its liens thereon.
(13) Intangible assets
Goodwill Patents
Trademarks
and trade
names
Customer
Relationships Others Total
NT$ NT$ NT$ NT$ NT$ NT$
Balance at January 1, 2008 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 from business
combination 5,520,031 - 2,634,244 151,100 1,871,300 10,176,675
Disposals (32,532) - - - (4,339) (36,871)
Reclassication - (727,381) - - (453,200) (1,180,581)
Effect of exchange rate changes 195,825 (20,326) (32,122) 11,722 (14,327) 140,772
Acer Incorporated 2009 Annual Report
88.
Acer Incorporated 2009 Annual Report
89. Financial Standing