Asus 2008 Annual Report Download - page 100

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ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
In addition, a goodwill-allocated CGU or group of CGUs is tested for impairment each year,
regardless of whether indicator for impairment exists. If an impairment test reveals that the
carrying amount, including goodwill, of CGU or group of CGUs is greater than its
recoverable amount, then an impairment loss is recognized. The loss is first recorded
against the goodwill allocated to the CGU, with any remaining loss allocated to other assets
on a pro rata basis proportionate to their carrying amounts. The write-down of goodwill
cannot be reversed in subsequent periods under any circumstances.
Impairment losses and reversals are classified as non-operating loss or income, respectively.
16. Employees’ bonuses, directors’ and supervisors’ remuneration and share-based payment
The Company adopts Interpretation No. 96-052 by Accounting Research and Development
Foundation to account for its employees’ bonuses and directors’ and supervisors’
remuneration as expenses rather than as distribution of retained earnings. The Company
adopts the R.O.C. SFAS No. 39 to account for the transfer of equity instruments from
shareholders to the Company’s or affiliated companies’ employees.
17. Earnings per share (EPS)
Primary EPS is calculated by dividing net income by the weight-average number of shares
outstanding during the period. In the event of capitalization of retained earnings or capital
surplus, the share number is retrospectively adjusted for additional shares issued.
Diluted EPS is calculated by dividing net income by the weighted-average number of
common shares used in the calculation for Primary EPS plus the number of common shares
that would be issued assuming conversion of all potentially dilutive common shares
outstanding.
When the potential common shares are anti-dilutive or the continuing operation of the
Company incurs a loss, the effect of potential common shares shall not affect the calculation
of EPS.
18. Preparation of consolidated financial statements and acquisition of shares
The Company adopts the R.O.C. SFAS No. 7 “Consolidated Financial Statements” for the
preparation of its consolidated financial statements and adopts the R.O.C. SFAS No. 25
“Business Combinations-Accounting Treatment under Purchase Method” to account for its
transactions of acquiring other companies’ shares.