Asus 2007 Annual Report Download - page 93

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89
ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements (Unaudited)
March 31, 2008 and 2007
(In New Taiwan thousand dollars unless otherwise stated)
5
I. ORGANIZATION AND OPERATIONS
ASUSTeK Computer Inc. was established on April 2, 1990. Its main activities are to produce,
design and sell “Notebook PC, main board, CD-ROM and add-on cards”.
The Company resolved to spin-off its OEM businesses on January 1, 2008. According to the
Company’s resolution, the Company transferred its computer and non-computer related OEM
businesses to its spun-off subsidiaries Pegatron Corporation and Unihan Corporation,
respectively.
The Company’s headcounts amounted to 4,491 and 8,478, respectively, on March 31, 2008 and
2007.
II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements were prepared in accordance with “Business Accounting Law”and
“Criteria for Handling Business Accounting”with respect to financial accounting standards,
“Criteria Governing the Preparation of Financial Reports by Securities Issuers”and generally
accepted accounting principles in the Republic of China on Taiwan. The significant
accounting policies are as follows:
1. Foreign currency transactions
Foreign currency transactions are recorded in New Taiwan Dollars at the rates of exchange
rates in effect when the transactions occurred. Gains or losses, caused by different foreign
exchange rates applied when foreign currency assets and liabilities are settled, are credited
to or charged against income in the year of actual settlement. The period-end balances of
foreign currency assets and liabilities are stated on the basis of the period-end exchange
rates and the resulting differences are credited to or charged against current income or
stockholders' equity, depending on the classification of the asset or liability to which it
relates.
2. Cash equivalents
The Company considers all highly liquid investments with an insignificant rate of risk and
with original maturities of three months or less at date of acquisition to be cash equivalents.