Crucial 2012 Annual Report Download - page 246

INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 2009, 2010 and 2011
(All amounts are expressed in thousands of New Taiwan Dollars,
except for per share information or unless otherwise specified)
(1) Organization and Principal Activities
Inotera Memories, Inc. (the “Company”) was legally established with the approval by the Ministry of Economic
Affairs on January 23, 2003. The Company's main operating activities are manufacturing and selling semiconductor
products. In January 2006, the Company was granted approval of its application to list its shares on the Taiwan
Stock Exchange (TSE). The Company's shares were initially listed on the TSE on March 17, 2006. On May 16,
2006 and August 4, 2009, the Company offered its equity shares in the form of global depositary shares (GDSs)
for trading in the Multilateral Trading Facility (MTF) market on the Luxembourg Stock Exchange (LSE).
As of December 31, 2010 and 2011, the Company had 3,457 and 3,560 employees, respectively.
(2) Summary of Significant Accounting Policies
The accompanying financial statements are prepared in conformity with the Guidelines Governing the Preparation
of Financial Reports by Securities Issuers, Business Entity Accounting Act, Regulation on Handling Business
Entity Accounting, and accounting principles generally accepted in the Republic of China (ROC).
The significant accounting policies followed by the Company are as follows:
(a) Use of estimates
The preparation of the accompanying financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from these estimates.
(b) Foreign currency transactions and translation
The Company's reporting and functional currency is New Taiwan Dollar. Foreign currency transactions during
the period are translated at the exchange rates on the transaction dates. Foreign currency-denominated assets
and liabilities are translated into New Taiwan Dollars at the exchange rate prevailing on the balance sheet date.
The resulting translation gains or losses are recognized as non-operating income or expenses.