Asus 2014 Annual Report Download - page 252

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(13) Retained earnings
A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first
be used to pay all taxes and offset prior years’ operating losses and then 10% of the
remaining amount shall be set aside as legal reserve. When such legal reserve amounts to the
total authorized capital, the Company shall not be subject to this requirement. The Company
may then appropriate or reverse a certain amount as special reserve according to relevant
regulations or as required by the government.
The remaining balance shall be distributed as follows: appropriate 10% of capital stock as
capital interest, no less than 1% as employees’ bonuses, and no more than 1% as directors’
and supervisors’ bonuses. When employees’ bonuses are distributed in the form of shares, the
recipients may include the employees of subsidiaries. After the distribution of earnings, the
remaining earnings and prior years’ undistributed earnings may be appropriated according to
a resolution of the board of directors adopted in the shareholders’ meeting.
B. The Company is facing a rapidly changing industrial environment, with the life cycle of the
industry in the growth phase. In light of the long-term financial plan of the Company and the
demand for cash by the shareholders, the Company should distribute cash dividends of not
less than 10% of the total dividends declared.
C. Except for covering accumulated deficit, increasing capital or payment of cash in proportion
to ownership percentage, the legal reserve shall not be used for any other purpose. The
amount capitalized or the cash payment shall be limited to the portion of legal reserve which
exceeds 25% of the paid-in capital.
D. (A) In accordance with the regulations, the Company shall set aside special reserve from
the debit balance on other equity items at the end of the financial reporting period before
distributing earnings. When debit balance on other equity items is reversed subsequently,
the reversed amount could be included in the distributable earnings.
(B) The amounts previously set aside by the Company as special reserve on initial
application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865,
dated April 6, 2012, shall be reversed proportionately when the relevant assets are used,
disposed of or reclassified subsequently.
Difference between Changes in
proceeds from associates and joint
acquisition or disposal
ventures accounted
of subsidiary and for under
Share premium book value equity method Total
At January 1, 2013 4,284,888$ 224,501$ 204,169)($ 4,305,220$
Effect of changes in - 2,965 247,828 250,793
percentage of
ownership
Effect of disposals - - 46,854)( 46,854)(
Retirement of treasury 56,922)( - - 56,922)(
shares
At December 31, 2013
4,227,966$ 227,466$ 3,195)($ 4,452,237$