Asus 2011 Annual Report Download - page 172

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(11) Idle assets
After evaluating and comparing the carrying value of idle assets and their recoverable amount, the
Group recognized (impairment loss) reversal of accumulated impairment amounting to ($84,939)
and $55,280 for the years ended December 31, 2011 and 2010, respectively.
(12) Goodwill
A. SYT acquired the shares of AAEON at the price of $57.5 (in dollars) per share in January and
May, 2011, for a total of 100% ownership. The acquisition transactions are accounted for by
the purchase method. The business combination effective date was set on June 1, 2011.
SYT is the surviving company and AAEON is the dissolved company. Pursuant to
Interpretation (100) 377 and (99) 112 issued by the ARDF, SYT did not recognize goodwill
for the acquisition, but the excess of the acquisition cost over the acquired identifiable net
asset value has been adjusted as additional paid-in capital common stock share premium.
B. The Group totally holds 65% ownership of SYT. The Group recognizes the excess of the
acquisition cost over the acquired identifiable net asset value as goodwill for the acquisition
as follows:
The net assets value of the business combination is based on the expert’s valuation instead of
the estimated value disclosed in the announced financial statements before.
2011/12/31 2010/12/31
Initial cost
Machinery and others 1,054,970$ 1,465,032$
Less: accumulated depreciation 621,765)( 1,114,453)(
Less:
accumulated impairment
433,205)
(
350,579)
(
-
$
-
$
2011/12/31 2010/12/31
Acquisition of AAEON 1,131,898$ -$
Others 49,475 -
1,181,373$ -$
Amount
Acquisition cost of SYT 5,286,326$
Less: identifiable net realizable value of tangible
assets and liabilities acquired by SYT
2,407,371)(
Less: identifiable net realizable value of
intangible assets and liabilities acquired by SYT 1,180,354)(
Add: minority interests 42,781
The difference between the acquired cost and the identifiable net asset value 1,741,382
The Group's ownership 65%
1,131,898$