Asus 2010 Annual Report Download - page 96

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92
ASUSTeK COMPUTER INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT AS OTHERWISE INDICATED)
1. HISTORY AND ORGANIZATION
(1) 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.
(2) 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. On June 1, 2010, however, the Company
transferred further its OEM assets and business (the Company’s long-term equity investment in
PEGATRON) to the Company’s another investee, PEGATRON INTERNATIONAL
INVESTMENT CO., LTD. (PEGATRON INVESTMENT). PEGATRON INVESTMENT then
issued new shares to the Company and its shareholders as consideration.
(3) The Company’s headcount totaled 3,612 and 3,455 employees as of December 31, 2010 and
2009, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements are prepared in accordance with the “Regulation Governing the
Preparation of Financial Reports by Securities Issuers”, “Business Entity Accounting Law”,
“Regulation on Business Entity Accounting Handling” and generally accepted accounting
principles in the Republic of China. The Company’s significant accounting policies are as follows:
(1) Foreign currency transactions and translation of financial statements in foreign currencies
A. Transactions involving non-derivative financial instruments denominated in foreign
currencies are recorded in New Taiwan dollars at the rates of exchange in effect when the
transactions occurred. Translation gains or losses arising from the settlement of assets and
liabilities denominated in foreign currencies are included in profit or loss in the year of
actual settlement.
B. Monetary assets and liabilities denominated in foreign currencies are remeasured at the
balance sheet date using the exchange rates in effect on that date, with related exchange
gains and losses included in the statement of income.
C. Non-monetary assets and liabilities denominated in foreign currencies that are measured
at fair value through stockholders’ equity are remeasured at the exchange rate prevailing
at the balance sheet date, with related exchange gains or losses recorded as cumulative
translation adjustment in stockholders’ equity. Non-monetary assets and liabilities