Asus 2014 Annual Report Download - page 198

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194
(15) Provisions for liabilities
Analysis of total provisions:
A. Provisions for warranty
The Group provides warranties on 3C products sold. Provision for warranty is estimated based
on these products’ historical warranty data. A provision is recognized as current when it is
expected to be used in one year.
B. Provisions for sales returns and discounts
The Group allows sales returns and gives discounts on 3C products sold. Provision for sales
returns and discounts is estimated based on these products’ historical data and other known
factors. A provision is recognized as current when it is expected to be used in one year.
C. Provisions for legal claims and royalty
The Group recognizes provision for legal claims or royalty fees made by the patentees against
the Group. After taking appropriate legal advice, the management evaluates the probable
claimable fees accrued as provision for liabilities. The provision charge is recognized in profit
or loss within operating costs and expenses.
(16) Common shares
A. As of December 31, 2014, the Company’s authorized capital was $47,500,000, consisting of
4,750,000,000 shares of common stock (including 50,000,000 shares which were reserved for
employee stock options), and the paid-in capital was $7,427,603, with a par value of $10 (in
dollars) per share. All proceeds from shares issued have been collected.
Provisions for Provisions for
Provisions for sales returns legal claims
warranty and discounts and royalty Total
At January 1, 2014 10,773,970$ 16,581,206$ 5,094,257$ 32,449,433$
Recognition (reversal) 13,723,750 39,204,797 1,424,394 54,352,941
Write-offs 13,561,830)( 38,016,980)( 551,737)( 52,130,547)(
Net exchange differences 518,338 939,293 300,970 1,758,601
At December 31, 2014 11,454,228$ 18,708,316$ 6,267,884$ 36,430,428$
Provisions for Provisions for
Provisions for sales returns legal claims
warranty and discounts and royalty Total
At January 1, 2013 10,369,087$ 13,855,414$ 3,183,655$ 27,408,156$
Recognition (reversal) 9,737,295 37,184,031 1,820,145 48,741,471
Write-offs 9,665,568)( 34,863,015)( - 44,528,583)(
Net exchange differences 333,156 404,776 90,457 828,389
At December 31, 2013 10,773,970$ 16,581,206$ 5,094,257$ 32,449,433$
2014/12/31 2013/12/31
Current 36,430,428$ 32,449,433$