Asus 2011 Annual Report Download - page 164

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160
~32~
(21) Business combination
Business combination transactions are accounted for by the purchase method in accordance with
R.O.C SFAS No. 25. The purchase cost of the acquiring corporation in a business combination
includes purchase price and all direct costs of an acquisition, and the excess of acquisition cost
over the sum of the fair value of the identifiable net assets is recognized as goodwill.
(22) Spin-off transaction
The Company resolved to spin off its OEM assets and businesses. The Company adopted
Interpretations (91) 128, (92) 106 and (92) 107 issued by the ARDF to account for its spin-off
transactions. Since the transferee company continues the transferor company’s economic activities,
the Company did not record any gain or loss from the said spin-off transaction but has adjusted the
net assets and long-term equity investment related additional paid-in capital and other equity
accounts against retained earnings or other components.
(23) Operating segments
In accordance with SFAS No. 41, “Segment reporting”, operating segments are reported in a
manner consistent with the internal reporting provided to the chief operating decision-maker.
3. CHANGES IN ACCOUNTING PRINCIPLES
(1) Notes and accounts receivable and other receivables
Effective January 1, 2011, the Group adopted the amended SFAS No. 34, “Accounting for Financial
Instruments”. Under this standard, a provision for impairment (bad debt) of accounts and notes
receivable and other receivables is established when there is objective evidence that they are
impaired. This change in accounting principle had no significant effect on the net income for the
year ended December 31, 2011.
(2) Operating segments
Effective January 1, 2011, the Group adopted SFAS No. 41, “Segment Reporting”, replacing the
original SFAS No. 20, “Disclosure of Segment Financial Information”. In accordance with such
standard, the Group restated the segment information for 2010 upon the first adoption of SFAS No.
41. This change in accounting principle had no significant effect on the net income and earnings per
share for the years ended December 31, 2011 and 2010.
4. DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash and cash equivalents
2011/12/31 2010/12/31
Petty cash and cash on hand 191,765$ 10,809$
Checking and demand deposits 10,250,177 4,440,096
Time deposits 30,658,013 37,295,574
Cash equivalents
97,153
61
41,197,108$ 41,746,540$