Asus 2015 Annual Report Download - page 259

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and one unit for each additional year thereafter, subject to a maximum of 45 units.
Pension benefits are based on the number of units accrued and the average monthly
salaries and wages of the last 6 months prior to retirement. The Company contributes
monthly an amount equal to 2% of the employees’ monthly salaries and wages to the
retirement fund deposited with Bank of Taiwan, the trustee, under the name of the
independent retirement fund committee. Also, the Company would assess the balance in
the aforementioned labor pension reserve account by December 31, every year. If the
account balance is not enough to pay the pension calculated by the aforementioned
method, to the employees expected to qualify for retirement in the following year, the
Company will make contribution for the deficit by next March. In addition, except for a
few foreign employees, the Company had settled its financial obligations to its employees
on December 31, 2007.
(B) The Company contributes 2% of the employees’ monthly salaries and wages for a few
foreign employees in accordance with R.O.C. Labor Standards Law to an independent
retirement trust fund, with the Bank of Taiwan, the trustee. The pension costs under the
above pension plan were $3,843 and $794 for the years ended December 31, 2015 and
2014, respectively.
(C) Expected contribution to the defined benefit pension plans of the Company for the year
ending December 31, 2016 are $980.
B. Effective July 1, 2005, the Company has established a defined contribution pension plan
(New Plan) under the Labor Pension Act, covering all regular employees with R.O.C.
nationality. Under the New Plan, the Company contributes monthly an amount based on 6%
of the employees’ monthly salaries and wages to the employees’ individual pension accounts
at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon
termination of employment. The pension costs under the defined contribution pension plans
were $260,177 and $221,509 for the years ended December 31, 2015 and 2014, respectively.
(11) Provisions for liabilities
Provisions for legal claims and royalty:
Analysis of total provisions for liabilities:
The Company recognizes provision for legal claims or royalty fees made by the patentees
against the Company. After taking appropriate legal advice, the management evaluates the
probable claimable fees accrued as provisions for liabilities. The provision charge is recognized
in profit or loss within operating costs and expenses.
2015 2014
January 1 3,188,737$ 2,135,835$
Recognition (reversal) 1,036,467 930,381
Net exchange differences 125,750 122,521
December 31 4,350,954$ 3,188,737$
2015/12/31 2014/12/31
Current 4,350,954$ 3,188,737$