Asus 2012 Annual Report Download - page 217

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tax returns, the buyer’s tax rate shall apply to the deferred tax associated with unrealized gain
or loss arising from transactions between parent company and subsidiaries. This GAAP
difference increased both deferred income tax assets - non-current and undistributed earnings
by $107,773.
F. The Group elected to use the exemption on cumulative translation differences for all foreign
operations. Cumulative translation differences that existed at the date of transition to IFRSs are
deemed to be zero and reclassified to undistributed earnings in the amount of $625,824 after
considering the tax effects, and reversed the same amount to special reserve at the same time in
accordance with Jin-Guan-Zheng-Shen-Zi Order No. 1010012865 of the Financial Supervisory
Commission, dated April 6, 2012.
G. In accordance with current accounting standards, the Group revalued its property, plant and
equipment. In transition to IFRSs, the Group elected to use the current revaluation of property,
plant and equipment at the date of transition to IFRSs as deemed cost at the date of the
revaluation and accordingly, reclassified the capital surplus from asset revaluation to retained
earnings. This GAAP difference decreased other liabilities - others and unrealized revaluation
increment by $18,381 and $73,526, respectively, and increased deferred income tax liabilities -
non-current and undistributed earnings by $18,381 and $73,526, respectively, and the amount
of $73,526 was then reclassified to special reserve in accordance with Jin-Guan-Zheng-
Shen-Zi Order No.1010012865 of the Financial Supervisory Commission, dated April 6, 2012.
H. In accordance with the IFRSs Frequently Asked Questions (FAQ) issued by the Taiwan Stock
Exchange dated April 9, 2012, the capital surplus recognized from a change in the holding
percentage of an investee company accounted for under equity method is reclassified to
undistributed earnings in the amount of $372,080.
I. Other adjustment items include adoption of IFRSs resulting to adjustment on long-term
investments accounted for under the equity method, election to recognize all cumulative
actuarial gains and losses at the date of transition to IFRS, recognition of lease payments as an
expense on a straight-line basis over the lease term, and recognition of long-term employee
benefits expense over the service period other than pension expense. The above adjustments
decreased undistributed earnings by $38,634 on the date of transition to IFRSs.