Asus 2011 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2011 Asus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 227

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227

98
ASUSTEK COMPUTER INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT AS OTHERWISE INDICATED)
1. HISTORY AND ORGANIZATION
(1) ASUSTEK COMPUTER INC. (ASUS or the Company) was established on April 2, 1990. The
Company’s common shares are listed on the Taiwan Stock Exchange (TSE) on November 14, 1996.
Its main activities are to produce, design and sell notebook PCs, main boards, software, add-on
cards, optics, wired and wireless communication equipment and telecom-restricted radio frequency
devices.
(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, PEGA and UNIHAN, respectively. On June 1, 2010, however, the
Company transferred further its OEM assets and business (the Company’s long-term equity
investment in PEGA) to the Company’s another investee, PII. PII issued new shares to the
Company and its shareholders as consideration.
(3) The Company’s headcount totaled 4,061 and 3,612 employees as of December 31, 2011 and 2010,
respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements are prepared in accordance with the “Regulations Governing the Preparation
of Financial Reports by Securities Issuers” 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 gain or loss 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 gain
and loss 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 gain or loss recorded as cumulative translation
adjustment in stockholders’ equity. Non-monetary assets and liabilities denominated in foreign
currencies that are measured at fair value through profit or loss are remeasured at the exchange
rate prevailing at the balance sheet date, with related exchange gain or loss recorded in the
statement of income. Non-monetary assets and liabilities denominated in foreign currencies
that are measured at cost are remeasured at the historical exchange rate.