Asus 2009 Annual Report Download - page 182

178
ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
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.
(17) 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 and domestic subsidiaries are subject to income tax at a statutory rate of 25%
and 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. Those subsidiaries abroad are subject to income tax according to the tax laws of
the related foreign jurisdiction. The components of income tax expense for the years ended
December 31, 2009 and 2008, were as follows: