Asus 2009 Annual Report Download - page 162

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ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
According to ROC SFAS No. 18 “Accounting for Pensions”, the Company and domestic
subsidiaries have their pension plan actuarially valued at year-end and recognizes the net periodic
pension costs, including service cost, net unrecognized transaction assets, prior service cost, and
gains or losses on pension over the average remaining service period of the employees. If the
minimum pension liability exceeds the total of unamortized prior service cost and unamortized
unrecognized transaction net benefit liabilities, the net loss not recognized as pension cost is
recognized and classified as a reduction of stockholders’ equity. In addition, except for a few
foreign employees, the Company had settled its financial obligations to its employees’ under the
pension plan accounted for base on SFAS No. 18 as of December 31, 2007.
The new Labor Pension Act became effective on July 1, 2005, and prescribes a defined
contribution pension plan for all new employees and for any employees employed before that date
who opted to adopt it. Under this defined contribution pension plan, the Company and domestic
subsidiaries contribute monthly at the rate of no less than 6% of salaries and wages to employees’
individual pension fund accounts with the Bureau of Labor Insurance, and this contribution is
recorded as pension expenses in the accompanying statements of income.
The overseas subsidiaries which adopt a defined contribution pension plan contribute periodically
on the basis of each local labor law, and such contribution is recorded as current expense.
(17) Revenue recognition
The Group recognizes revenue when the revenue earning process has been significantly completed,
which means the revenue has been realized or is readily realizable and earned. Cost is recognized
when the related revenue is accrued; expenses are recognized as current expenses when incurred.
(18) Employees’ bonuses and directors’ and supervisors’ remuneration and share-based payment
Appropriation of earnings after January 1, 2008, for employees’ bonuses and directors’
remuneration according to the R.O.C. Company Act and each entity’ s article of incorporation
accounts, is accounted for in accordance with Interpretation (96) 052 issued by the ARDF.
Accordingly, the Company and domestic subsidiaries estimate the amount of directors’ and
supervisors’ remuneration according to the Interpretation and recognize it as expenses. Differences
between the amount approved in the shareholders’ meeting and recognized in the financial
statements, if any, are accounted for as changes in accounting estimates and recognized as profit or
loss. The Group adopts R.O.C. SFAS No. 39 to account for the transfer of equity instruments
from shareholders and the Group to the Group’ s employees.