Crucial 2011 Annual Report Download - page 162

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12
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
(e)
Future gross lease receivables for leases classified as capital lease or operating lease as of December 31, 2010, were as
follows:
December 31, 2010
Duration Capital lease Operating lease
2011.1.1~2011.12.31
$
24,698
3,719
2012.1.1~2012.12.31
24,698
3,719
2013.1.1~2013.12.31
24,698
3,719
2014.1.1~2014.12.31
24,698
3,719
On and after 2015.1.1
493,957
74,370
Total
$
592,749
89,246
(8)
Property, Plant and Equipment and Idle Assets
(a)
For the year ended December 31, 2010, the Company recognized impairment loss on fixed assets of $236,763 because some
machinery and equipment cannot be used for the next generation manufacturing process. This factor is expected to cause a
decrease in cash inflows from the use of the related machinery so that the recoverable amount of those machinery and
equipment would be lower than its carrying amount. The recoverable amount of the machinery was based on its value in use,
determined using a discount rate of 13.49%.
(b)
In March 2007, the Company has secured the approval to purchase two parcels of land numbered 21 and 33 located in
Taoyuan Hi-
Tech Industrial Park Tang Wei District, for $1,686,190 from the Taoyuan County Government. Asia Pacific
Development Co. was engaged by the Taoyuan County Government to handle the sale of the land in this industrial park. As
the land is not being used in operation, it was classified as an idle asset.
(c)
Fixed and intangible assets are normally assessed for any impairment each year. Also, idle assets－
machinery and equipment
based on book value were provided with a 100% impairment loss provision.
(d)
Idle assets as of December 31, 2009 and 2010 consisted of the following:
December 31,
2009 2010
Land
$
1,686,190
1,686,190
Original cost of machinery and equipment
99,569
53,876
Less: accumulated depreciation
(63,026
)
(45,654
)
impairment loss
(36,543
)
(8,222
)
$
1,686,190
1,686,190