Asus 2007 Annual Report Download - page 123

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119
ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements (Unaudited)
(In New Taiwan thousand dollars unless otherwise stated)
35
(15)To deal with foreign currency risk resulted from changing in net-assets and inventory
evaluated in foreign currency, the Company signed the agreement with Pegatron
Corporation and Unihan Corporation that whoever benefits from foreign exchange shall
compensate the other, where appropriate, for loss due to exchange rate fluctuation,
from December 28, 2007 to March 31, 2008. As of March 31, 2008, the Company
was compensated by Pegatron Corporation and Unihan Corporation with $1,602,711
thousand and $255,748 thousand, respectively, and recognized as “credit to foreign
exchange loss”and “other receivables”; however, the Company compensated Pegatron
Corporation and Unihan Corporation with $365,523 thousand and $109,050 thousand,
respectively, for valuation loss of inventory, and recognized as adjustment to “cost of
sales”and “other payables”.
VI. ASSETS PLEDGED OR MORTGAGED
As of March 31, 2008 and 2007, the following assets were pledged as collateral:
Assets Items 3/31/2008 3/31/2007
Current assets Certificate of deposit-restricted
-current
$1,850,000 $-
Other assets Refundable deposits 122,223 254,775
Total $1,972,223 $254,775
VIICOMMITMENTS AND CONTINGENT LIABILITIES
1. As of March 31, 2008, the Company had the following unused L/Cs (in dollars):
Names of the Banks Currencies Total Amounts
Mega International Commercial Bank EUR $153,405
Mega International Commercial Bank USD $303,700
2. The Company’s income tax returns assessed by the Tax Bureau from 1996 to 2003
exceeded the total amount filed for $2,927,620 thousand. The Company disagreed with
the assessment and has petitioned for re-assessment.
3. The Company provided guarantee to its related parties during the three-month period ended
March 31, 2008. The outstanding guarantee amounts as of March 31, 2008 were as
follows: