Crucial 2012 Annual Report Download - page 285

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40
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
Administrative Office of the Formosa Group (sundry debtors by Formosa Plastics Corp. and NPC) amounted
to $24,316, $35,838 and $34,023, respectively.
(c) Future financial plans
The Company's operations have been adversely affected by the recent market conditions particularly for the
DRAM industry. As of December 31, 2011, the Company's current liabilities of $59,414,171 exceed its current
assets of $18,458,625. The current ratio is significantly lower than 100%. The Company plans to adopt the
following strategies in order to improve its operations and financial situation.
(i) Private issuance of new common shares of stock and draw down loans to strengthen liquidity.
(ii) Improve the DRAM production technology and diversity product mix to enhance cash flow.
The Company believes that its operating results and financial condition will be improved by executing the
above plans.
(d) The Company's significant foreign currency financial assets and liabilities were as follows:
December 31,
2010 2011
Foreign
currency
(thousand) Exchange
rate
Foreign
currency
(thousand) Exchange
rate
Foreign currency denominated
financial assets:
USD $ 277,297 29.130 423,633 30.290
EUR 50,582 38.920 34 39.218
JPY 837 0.358 1,535 0.3894
Foreign currency denominated
financial liabilities:
USD 266,634 29.130 235,795 30.290
EUR 103,844 38.920 612 39.218
JPY 6,891,504 0.358 897,032 0.3894
(e) Under Rule No. 0990004943 issued by the Financial Supervisory Commission (FSC) on February 2, 2010,
the FSC announced the “Framework for Adoption of International Financial Reporting Standards by
Companies in the ROC.” In this framework, starting 2013, companies with shares listed on the TSE or traded
on the Taiwan GreTai Securities Market or Emerging Stock Market shall prepare their financial statements in
accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and the
International Financial Reporting Standards, International Accounting Standards, and the Interpretations as
well as related guidance translated by the ARDF and issued by the FSC. To comply with this framework, a
project team was set up for purposes of carrying out a plan to adopt the IFRSs. Leading the implementation