Asus 2009 Annual Report Download - page 119

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ASUSTEK COMPUTER INC.
Notes to Financial Statements
2008 2007
Employees’ bonuses – cash $ 250,837 912,030
Employees’ bonuses – stock (note) 700,000 1,200,000
Directors’ and supervisors’ remuneration 52,824 211,203
$ 1,003,661 2,323,233
Note: For 2007, employees’ bonuses – stock are presented based on par value of the shares..
There was no difference between the amount of earnings actually distributed for 2008 and that
accrued in the 2008 financial statements, and the earnings distribution for 2008 was recorded as
expense in 2008; the earnings distribution for 2007 was recorded as a deduction from
unappropriated retained earnings. The related information about the distribution of
employees’ bonuses and directors’ and supervisors’ remuneration determined by the meeting of
the board of directors and approved in the stockholders’ meeting can be accessed from the
Market Observation Post System.
F. According to the Company Act and the Company’ s articles of incorporation, the employees’
bonuses and directors’ and supervisors’ remuneration were estimated and accrued in the 2009
and 2008 financial statements based on a fixed amount approved by the management. The
recognized employees’ bonuses amounted to $698,438 and $950,837, and directors’ and
supervisors’ remuneration amounted to $69,844 and $52,824 for the years ended December 31,
2009 and 2008, respectively. The number of shares distributable as stock dividend is
determined based on the closing price of the day before the shareholders’ meeting date and
considering the ex-rights and ex-dividends effects. 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 in profit or loss in the year of actual
distribution.
(10) Income taxes
A. The Company was certified to meet the definition of “Business Operation Headquarters” as
defined by the “Statute for Upgrading Industries,” Article 70-1. According to the statute, the
Company can obtain an income tax exemption on dividends declared by the board of directors
of an investee. The Company has obtained the exemption certificates for 2009 and 2008.
B. The Company are subject to income tax at a statutory rate of 25%. The Company is also subject
to the “Income Basic Tax Act” to calculate income tax. According to the amended tax law
issued on May 27, 2009, the statutory income rate will be reduced to 20% commencing from
2010. The components of income tax expense of the Company for the years ended December
31, 2009 and 2008, were as follows: