Acer 2009 Annual Report Download - page 51

2009
Plan assets in excess
of accumulated
benet obligation
Accumulated benet
obligation in excess
of plan assets
NT$ US$ NT$ US$
Benet obligation:
Vested benet obligation (180,819) (5,645) (22,077) (689)
Nonvested benet obligation (385,033) (12,021) (45,676) (1,426)
Accumulated benet obligation (565,852) (17,666) (67,753) (2,115)
Projected compensation increases (319,849) (9,986) (114,991) (3,590)
Projected benet obligation (885,701) (27,652) (182,744) (5,705)
Plan assets at fair value 664,033 20,731 60,408 1,886
Funded status (221,668) (6,921) (122,336) (3,819)
Unrecognized pension loss 434,772 13,574 43,661 1,363
Unrecognized transition (assets) obligation (1,592) (49) 20,799 649
Minimum pension liability adjustment - - (3,731) (116)
Prepaid pension cost (accrued pension liabilities) 211,512 6,604 (61,607) (1,923)
Accrued pension liabilities are included in “other liabilities” in the accompanying consolidated balance
sheets. Prepaid pension cost is included in “deferred changes other assets” in the accompanying consolidated
balance sheets.
(b) The components of the net periodic pension cost were as follows:
2008 2009
NT$ NT$ US$
Service cost 49,808 51,634 1,612
Interest cost 34,453 26,954 841
Actual return on plan assets (18,586) (6,087) (190)
Amortization and deferral 31,937 7,222 225
Effect of pension plan curtailments - 52,502 1,640
Net periodic pension cost 97,612 132,225 4,128
(c) The principal actuarial assumptions used were as follows:
2008 2009
Discount rate 2.50% 2.25%
Rate of increase in future compensation 3.00% 3.00%
Expected rate of return on plan assets 2.50% 2.25%
In 2008 and 2009, pension cost under the dened contribution retirement plans amounted to NT$367,627 and
NT$331,469, respectively.
(18) Income taxes
(a) The components of income tax expense from continuing operations were as follows:
2008 2009
NT$ NT$ US$
Current income tax expense 2,383,360 4,581,450 143,036
Deferred income tax (benet) expense 786,086 (951,327) (29,701)
3,169,446 3,630,123 113,335
(b) The statutory income tax rate applicable to the Company and its subsidiaries located in the ROC is 25%.
Additionally, the amended Article 5 of the ROC Income Tax Law announced on May 27, 2009, requires that
the income tax rate of prot-seeking enterprises will be reduced from 25% to 20%, effective in 2010. The
Company and its domestic subsidiaries which are subject to the ROC Income Tax Act had recalculated their
deferred tax assets in accordance with the amended Article and adjusted the resulting difference to income
tax expense. The income tax calculated on the pre-tax income from continuing operations at the Company’s
statutory income tax rate (25%) was reconciled with the income tax expense of continuing operations
reported in the accompanying consolidated statements of income as follows.
2008 2009
NT$ NT$ US$
Expected income tax 3,701,682 3,745,746 116,945
Effect of different tax rates applied to the
Company’s subsidiaries 720,278 1,032,938 32,249
Tax-exempt investment income from domestic
investees (154,526) (86,873) (2,712)
Prior-year adjustments 52,938 523,617 16,348
Gain on disposal of marketable securities not
subject to income tax (697,934) 124,873 3,899
Investment tax credits 295,939 198,804 6,207
Change in valuation allowance 225,493 (350,794) (10,952)
Tax-exempt investment income resulting from
operational headquarters (1,386,033) (2,556,360) (79,811)
Surtax on unappropriated retained earrings 165,109 17,646 551
Deferred tax assets resulting from spin off adjustment (set
note 5(2) (c)) (511,425) (72,449) (2,262)
Alternative minimum tax 44,430 1,417 44
Effect of change in income tax rate - 438,368 13,686
Others 713,495 613,190 19,143
Income tax expense 3,169,446 3,630,123 113,335
Acer Incorporated 2009 Annual Report
96.
Acer Incorporated 2009 Annual Report
97. Financial Standing