Asus 2010 Annual Report Download - page 107

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103
(7) Long-term equity investments
A. Details of long-term equity investments accounted for under the equity method are as
follows:
2010/12/31 2009/12/31
Percentage Percentage
Carrying of Carrying of
Investee company amount ownership amount ownership
PEGATRON
ASUS
$ 22,165,896
10,839,491
24.45
100.00
$ 95,397,920
7,165,908
100.00
100.00
INTERNATIONAL
LIMITED
ASKEY COMPUTER
CORP. (ASKEY)
HUA-CHENG
8,845,738
1,208,539
100.00
100.00
8,874,563
1,056,282
100.00
100.00
VENTURE
CAPITAL CORP.
ASUSTEK 867,926 100.00 1,671,186 100.00
HOLDINGS
LIMITED (AHL)
Others 2,296,131 1,844,089
$ 46,223,721 $ 116,009,948
B. The investment income which was recognized under the equity method amounted to
$8,541,113 and $7,572,667 for the years ended December 31, 2010 and 2009,
respectively.
C. On June 1, 2010, the Company transferred further the OEM assets and business (the
Company’s long-term equity investment in PEGATRON) to PEGATRON
INVESTMENT. PEGATRON INVESTMENT then issued new shares to the
Company and its shareholders as consideration. The Company then obtained 25%
ownership of the consolidated PEGATRON and PEGATRON INVESTMENT
(PEGATRON INVESTMENT is the dissolved company.) The long-term investment
decreased by $70,197,726 after this transaction.
D. AHL decreased its capital and the Company received a return of capital amounting to
$1,061,951 for the year ended December 31, 2010.
E. The unrealized (loss) gain on financial assets resulting from long-term equity
investments were ($364,194) and $1,640,827 for the years ended December 31, 2010
and 2009, respectively.
F. The Company received cash dividends for the years ended December 31, 2010 and 2009
amounting to $4,018,073 and $4,987,395, respectively, stated as a deduction from
long-term equity investment.