D-Link 2005 Annual Report Download - page 42
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D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Continued)
$30,223 thousand was recognized. As of December 31, 2005, the balance of unrealized loss on
market value decline of long-term investment under stockholders’ equity was $56,617 thousand.
(f) Assets Held for Lease and Idle Assets
D-Link purchased a plant located in the Neihu District of Taipei from Globe Sun Electronic, Inc.
for $880,000 thousand in June 2004. The plant was temporarily leased to Globe Sun Electronic
Inc. and was recorded as assets held for lease as of December 31, 2004. In 2005, D-Link moved
into the plant, and the plant was no longer leased to Globe Sun Electronic Inc., hence the plant
was recorded as property, plant and equipment as of December 31, 2005.
In 2005, D-Link recognized impairment loss on assets held for lease amounting to $36,000
thousand based on the appraisal report. As of December 31, 2005 and 2004, the components of
assets held for lease were as below:
December
31, 2005
December
31, 2004
Cost
Land $ - 588,930
Building 230,544 617,920
230,544 1,206,850
Less: Accumulated depreciation (55,160) (59,413)
Accumulated impairment loss (36,000) -
Net carrying amount $ 139,384 1,147,437
D-Link transferred certain plants and machinery and equipment not in use for operations to idle
assets and recognized impairment loss and idle asset valuation loss based on the appraisal report
or estimated net realizable value. As of December 31, 2005 and 2004, the components of idle
assets were as below:
December
31, 2005
December
31, 2004
Cost
Land $ 57,477 -
Building 205,364 167,499
Machinery and equipment 5,741 5,741
Other equipment 1,804 2,600
270,386 175,840
Accumulated depreciation
Building 87,934 59,646
Machinery and equipment 4,121 3,680
Other equipment 1,557 1,961
93,612 65,287
176,774 110,553
Less: Allowance for losses on idle asset valuation (17,446) (35,268)
Accumulated impairment loss (48,500) -
Net carrying amount $ 110,828 75,285