Asus 2012 Annual Report Download - page 170

Download and view the complete annual report

Please find page 170 of the 2012 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 221

  • 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

166
ASUSTEK COMPUTER INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
(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 were 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, the Company further
transferred its OEM assets and business (the Company’s long-term equity investment in PEGA) to
another of the Company’s investees, PII. PII issued new shares to the Company and its shareholders
as consideration.
(3) The Group’s headcount totaled 25,459 and 21,361 employees as of December 31, 2012 and 2011,
respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the Company and its subsidiaries (collectively referred
herein as the Group) 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 Group’s significant accounting policies are as follows:
(1) Basis of consolidation
A. When the Group holds more than 50% of the voting rights of investees (including the
exercisable and convertible potential voting rights owned by the Group, except when there is
any evidence indicating that the Group has no controlling power from their percentage of
ownership) or when any one of the criteria listed below is met, the Group is considered to have
control over the investees. The Group not only accounts for such investments under the equity
method, but also consolidates them into the Group’s consolidated financial statements
quarterly.
(A) Control over more than half of the voting rights by virtue of an agreement with other
investors.
(B) Power to govern the financial, operating and personnel policies of the entity under a
statute or an agreement.
(C) Power to appoint or remove more than half of the members of the board of directors (or its
equivalent) and control of the entity is by that board (or its equivalent).