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
9. OTHER CURRENT FINANCIAL ASSETS
Other current financial assets as of December 31, 2008 and 2009
were as follows:
2008 2009
NT$ NT$ US$(Note 3)
Other receivables $ 193,092 $ 118,321 $ 3,699
Interest receivables 40,026 11,226 351
Agency payments 28,519 23,517 735
Other receivables from
related parties (Note 25) 13,869 81,137 2,536
$ 275,506 $ 234,201 $ 7,321
Other receivables were primarily overseas value-added tax
receivables from customers, prepayment for withholding income tax
of employees’ bonuses and travel expenses and proceeds of the
sales of properties.
10. INVENTORIES
Inventories as of December 31, 2008 and 2009 were as follows:
2008 2009
NT$ NT$ US$(Note 3)
Finished goods $ 1,302,917 $ 1,227,468 $ 38,371
Work-in-process 2,435,581 1,784,531 55,784
Raw materials 5,303,195 4,233,948 132,352
Goods in transit - 618,013 19,319
9,041,693 7,863,960 245,826
Less: Valuation
allowance (1,623,226 )( 3,125,261 ) ( 97,695 )
$ 7,418,467 $ 4,738,699 $ 148,131
The write-down of inventories to their net realizable value amounted
to NT$1,111,843 and NT$1,934,360 thousand (US$60,468
thousand) and was recognized as cost of sales for the years ended
December 31, 2008 and 2009, respectively.
11. PREPAYMENTS
Prepayments as of December 31, 2008 and 2009 were as follows:
2008 2009
NT$ NT$ US$(Note 3)
Royalty $ 976,824 $ 3,044,563 $ 95,173
Services 89,181 121,600 3,801
Molding equipment 80,420 37,052 1,158
Software and hardware
maintenance 73,218 68,937 2,155
Export 6,420 21,219 663
Others 11,568 58,120 1,817
$ 1,237,631 $ 3,351,491 $ 104,767
Prepayments for royalty were primarily for discount purposes and
were classified as current or noncurrent on the basis of their
maturities. As of December 31, 2009, noncurrent prepayments of
NT$1,843,170 thousand (US$57,617 thousand) had been classified
as other assets (Note 28 has more information).
Prepayments for others were primarily rent, travel and insurance
expenses.
12. FINANCIAL ASSETS CARRIED AT COST
Financial assets carried at cost as of December 31, 2008 and 2009
were as follows:
2008 2009
NT$ NT$ US$(Note 3)
Hua-Chuang Automobile
Information Technical Center
Co., Ltd. $ 500,000 $ 500,000 $ 15,630
Answer Online, Inc. 1,192 1,192 37
$ 501,192 $ 501,192 $ 15,667
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The Company had derivative transactions in 2008 and 2009 to manage exposures related to exchange rate fluctuations. However, these
transactions did not meet the criteria for hedge accounting under Statement of Financial Accounting Standards No. 34 - ³Financial Instruments:
Recognition and Measurement.´Thus, the Company had no hedge accounting in 2008 and 2009. Outstanding forward exchange contracts as of
December 31, 2008 and 2009 were as follows:
Forward Exchange Contracts
2008
Buy/Sell Currency Settlement Period/Date Contract Amount
Forward exchange contracts Sell AUD/USD 2009.01.07-2009.01.16 AUD 17,000
Forward exchange contracts Sell EUR/USD 2009.01.07-2009.02.27 EUR 141,000
Forward exchange contracts Sell GBP/USD 2009.01.07-2009.02.18 GBP 3,870
Forward exchange contracts Sell JPY/NTD 2009.01.16 JPY 95,000
Forward exchange contracts Buy USD/JPY 2009.01.07-2009.02.13 USD 16,726
Forward exchange contracts Sell USD/NTD 2009.01.07-2009.01.23 USD 37,000
Forward exchange contracts Buy USD/CAD 2009.01.16 USD 618
2009
Buy/Sell Currency Settlement Period/Date Contract Amount
Forward exchange contracts Sell EUR/USD 2010.01.15-2010.02.26 EUR 76,000
Net loss on derivative financial instruments in 2009 was NT$749,476 thousand (US$23,428 thousand), including realized settlement loss of
NT$767,608 thousand (US$23,995 thousand) and valuation gain of NT$18,132 thousand (US$567 thousand).
7. AVAILABLE-FOR-SALE FINANCIAL ASSETS
Available-for-sale financial assets as of December 31, 2008 and
2009 were as follows:
2008 2009
NT$ NT$ US$(Note 3)
Mutual funds $ - $ 2,497,394 $ 78,068
Domestic quoted stocks 339 313 10
Less: Current portion - ( 2,497,394 ) ( 78,068 )
$ 339 $ 313 $ 10
8. NOTES AND ACCOUNTS RECEIVABLE
Notes and accounts receivable as of December 31, 2008 and 2009
were as follows:
2008 2009
NT$ NT$ US$(Note 3)
Notes receivable
$ 3,456 $-$-
Accounts receivable
29,407,383 26,334,719 823,217
Less:
Allowance for
doubtful
accounts
( 550,597 ) ( 1,008,491 ) ( 31,525 )
$ 28,860,242 $ 25,326,228 $ 791,692
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