Acer 2009 Annual Report Download - page 58

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(ii) Notes and accounts receivable from:
December 31, 2008 December 31, 2009
NT$ NT$ US$
COWIN 329,848 315,929 9,864
SAL 64,529 116,156 3,626
eLIFE 159,182 109,090 3,406
Wistron 248,930 43,305 1,352
Others (individually less than 5%) 38,976 15,826 494
841,465 600,306 18,742
(b) Purchases and related notes and accounts payable
(i) Purchases from:
2008 2009
NT$ NT$ US$
Wistron 25,228,683 32,351,566 1,010,040
Others 270 214 6
25,228,953 32,351,780 1,010,046
The trading terms with related parties are not comparable to the trading terms with third parties as the
specications of products are different.
The Consolidated Companies sold raw material to Wistron and its subsidiaries and purchased back
the nished goods after being manufactured. To avoid double-counting, the revenues and sales of raw
materials to Wistron and its subsidiaries amounting to NT$88,579,887 and NT$127,377,990 for the years
ended December 31, 2008 and 2009, respectively, were excluded from the consolidated revenues and cost
of goods sold. Having enforceable rights, the Consolidated Companies offset the outstanding receivables
and payables resulting from the above-mentioned transactions. The offset resulted in a net payable
balance.
(ii) Notes and accounts payable to:
December 31, 2008 December 31, 2009
NT$ NT$ US$
Wistron 7,681,059 10,172,553 317,595
Others 69,161 59,811 1,867
7,750,220 10,232,364 319,462
(c) Spin-off of assets
On February 28, 2002, the Company spun off its design, manufacturing and services business from its brand
business and transferred the related operating assets and liabilities to Wistron. The Company agreed with
Wistron that Wistron is obligated to pay for the deferred income tax assets being transferred only when they
are actually utilized. In 2006, the ROC income tax authorities examined and rejected Wistron’s claim of
investment credits transferred from the spin-off in the income tax returns for the years from 2002 to 2004.
Wistron disagreed with the assessment and led a request with the tax authorities for a reexamination of the
aforementioned income tax returns. The Company recognized income tax expense of NT$875,802 based on
the tax exposure estimated in 2006 and provided a valuation allowance against the receivables from Wistron.
In 2008 and 2009, the tax authorities subsequently concluded that Wistron could utilize portions of the
aforementioned deferred tax assets resulting from the spin-off. Based on the tax authorities’ conclusion, the
Company collected the outstanding receivables from Wistron in 2009. Additionally, the valuation allowance
was reversed to current income tax benet in the amount of NT$511,425 and $72,449, for the years ended
December 31, 2008 and 2009, respectively.
(d) Other expenses
The Consolidated Companies paid iD Soft Capital Inc. management service fees amounting to NT$61,633 and
NT$49,333 for the years ended December 31, 2008 and 2009, respectively.
(e) Advances to/from related parties
The Consolidated Companies paid certain expenses on behalf of related parties. Additionally, related parties
paid certain expenses and accounts payable on behalf of the Consolidated Companies. As of December 31,
2008 and 2009, the Consolidated Companies had aggregate receivables from related parties of NT$45,173
and NT$21,507, respectively, and payables to related parties of NT$189,964 and NT$92,187, respectively,
resulting from these transactions.
(3) Compensation to executive ofcers
For the years ended December 31, 2008 and 2009, compensation paid to the Consolidated Companies’ executive
ofcers including directors, supervisors, president and vice-presidents was as follows:
2008 2009
Amount Amount
NT$ NT$ US$
Salaries 249,243 339,997 10,615
Cash awards and special allowances 134,574 175,655 5,484
Business service charges 1,989 1,080 34
Employee bonuses 360,581 443,855 13,857
746,387 960,587 29,990
The aforementioned compensation included the accruals for employee bonus and directors’ and supervisors’
remuneration as discussed in note 4(19).
Acer Incorporated 2009 Annual Report
110.
Acer Incorporated 2009 Annual Report
111. Financial Standing