Asus 2009 Annual Report Download - page 107

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103
ASUSTEK COMPUTER INC.
Notes to Financial Statements
Effective from 1995, the Company adopts R.O.C. SFAS No. 18 “Accounting for Pensions”. The
funding status of the pension plan as of December 31, 1995, was measured on an actuarial basis.
Because the accrued pension liability is equal to the funding status of the pension plan, no
unrecognized transitional net assets or net obligations shall be amortized in the future. In
accordance with R.O.C. SFAS No. 18, net pension cost was recognized from January 1, 1996. In
addition, except for a few foreign employees, the Company had settled its financial obligations to
its employees’ under the pension plan accounted for base on SFAS No. 18 as of December 31,
2007.
The new Labor Pension Act became effective on July 1, 2005, and prescribes a defined
contribution pension plan for all new employees and for any employees employed before that date
who opted to adopt it. Under this defined contribution pension plan, the Company contributes
monthly oat the rate of no less than 6% of salaries and wages to employees’ individual pension
fund accounts with the Bureau of Labor Insurance, and this contribution is recorded as pension
expenses in the accompanying statements of income.
(13) Revenue recognition
The Company recognizes revenue when the revenue earning process has been significantly
completed, which means the revenue has been realized or is readily realizable and earned. Cost is
recognized when the related revenue is accrued; expenses are recognized as current expenses when
incurred.
(14) Employees’ bonuses and directors’ and supervisors’ remuneration and share-based payment
Appropriation of earnings after January 1, 2008, for employees’ bonuses and directors’
remuneration according to the R.O.C. Company Act and each entity s article of incorporation
accounts, is accounted for under Interpretation (96) 052 issued by the ARDF. Accordingly, the
Company and domestic subsidiaries estimate the amount of directors’ and supervisors’
remuneration according to the Interpretation and recognize it as expenses. Differences between the
amount approved in the shareholders meeting and recognized in the financial statements, if any,
are accounted for as changes in accounting estimates and recognized as profit or loss. The Group
adopts R.O.C. SFAS No. 39 to account for the transfer of equity instruments from shareholders
and the Group to the Group’ s employees.
(15) Income taxes
Income tax is calculated on the basis of accounting income. The differences between the tax
bases and the book values of assets and liabilities are recorded as deferred tax using the enacted tax
rates for the periods in which the deferred tax is expected to be reversed. The tax effects from
taxable temporary differences are recognized as deferred tax liabilities, while the deductible
temporary differences, and investment tax credits are accounted for as deferred tax assets, which
are assessed an allowance for deferred tax assets based on further realization.