Asus 2015 Annual Report Download - page 210

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(25) Costs and expenses by nature
(26) Employee benefit expenses
A. According to the Articles of Incorporation of the Company, when distributing earnings, the
Company shall distribute bonuses to the employees and pay remuneration to the directors and
supervisors that account for no less than 1% and no more than 1%, respectively, of the total
distributed amount.
However, in accordance with the Company Act amended on May 20, 2015, a company shall
distribute employee compensation, based on the current year’s profit condition, in a fixed
amount or a proportion of profits. On July 22, 2015, the Board of Directors proposed to make
the amendment relative to the appropriation of the Company’s employees’ compensation in the
Company’s Articles of Incorporation as follows: The employees’ compensation is based on the
current year’s earnings, which should be used first to cover accumulated deficit, if any, and
then the remaining balance shall be distributed: no less than 1% as employees’ compensation,
and no more than 1% as directors’ and supervisors’ remuneration. The amendment has not been
resolved by shareholders.
B. For the years ended December 31, 2015 and 2014, employees’ compensation (bonuses) was
accrued at $1,273,281 and $956,495, respectively; while directors’ and supervisors’
remuneration was accrued at $67,015 and $50,342, respectively. The expenses recognized for
the year of 2015 were accrued based on the earnings of current year. The employees’
compensation and directors’ and supervisors’ remuneration resolved by the board of directors
were $1,273,281 and $67,015, and the employees’ compensation will be distributed in the form
of cash. The expenses recognized for the year of 2014 were accrued based on the net income of
Operating Operating Operating Operating
costs expenses Total costs expenses Total
Employee benefit
expenses
3,317,229$ 20,293,769$ 23,610,998$ 3,473,181$ 17,775,786$ 21,248,967$
Depreciation 675,281 648,494 1,323,775 2,060,066 665,198 2,725,264
Amortisation 26,297 381,541 407,838 33,548 339,305 372,853
For the years ended December 31,
2015
2014
2015 2014
Wages and salaries 20,374,898$ 18,571,016$
Labor and health insurance 1,361,110 1,313,979
Pension (Note) 1,321,347 970,933
Other personnel expenses 553,643 393,039
23,610,998$ 21,248,967$
Note: Includes the pension expense under the defined contribution plan and defined benefit plan.
For the years ended December 31,