Asus 2009 Annual Report Download - page 141

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ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2009 and 2008
(expressed in thousands of New Taiwan dollars unless otherwise specified)
1. Organization
ASUSTeK Computer Inc. (the Company) was established on April 2, 1990. The Company’ s
common shares were listed on the Taiwan Stock Exchange (TSE). Its main activities are to produce,
design and sell notebook PCs, main boards, CD-ROMs and add-on cards.
The Company resolved to spin-off its OEM businesses on January 1, 2008. Pursuant to the Company’ s
resolution, the Company transferred its computer and non-computer OEM businesses to its spun-off
subsidiaries PEGATRON CORPORATION (PEGATRON) and UNIHAN CORPORATION
(UNIHAN), respectively.
The Group’ s headcounts aggregated 113,324 and 104,294 as of December 31, 2009 and 2008,
respectively.
2. Summary of Significant Accounting Policies
The consolidated financial statements are prepared in accordance with the Guidelines Governing the
Preparation of Financial Reports by Securities Issuers and accounting principles and practices
generally accepted in the Republic of China. The significant accounting policies and measurement
basis adopted in preparing the accompanying financial statement are as follows:
(1) Basis of consolidation
When the Group holds more than 50% of the voting rights of investees (including the exercisable
and convertible potential voting rights owned by the Group except when there is any evidence
indicating that the Group has no controlling power from their percentage of ownership) or when
any one of the criteria listed below is met, the Group is considered to have control over the
investees. The Group not only accounts for such investments under the equity method but also
consolidates them into the Group’ s consolidated financial statements quarterly.
A. Has ability to acquire more than half of investee’ s voting rights with agreement of other
investors.
B. Has ability to control the financial, operating and human resources functions of investee
according to regulations or agreements.
C. Has authority to appoint more than half of the members of the board of directors (or its
equivalent) to control the board (or its equivalent).
D. Has authority to secure more than half of the voting rights of the board (or its equivalent) to
control the board (or its equivalent).
E. Has other circumstances that prove the controlling power.