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2013
Annual Report
Innovation Execution Heritage

Table of contents

  • Page 1
    Annual Report 2013 Innovation Execution Heritage

  • Page 2
    Financial Highlights NT$ in thousands 2013 Net Sales Gross Profit Operating Income Income Before Tax Net Income FX Rate (USD to NTD) Cash & Cash Equivalents Total Assets Working Capital Long Term Loans Shareholder's Equity Shares Outstanding ** FX Rate (USD to NTD) ** in thousands 30,588,474 8,067,...

  • Page 3
    ...-time monitoring, remote management, mobile access, media streaming, and file sharing - enhancements that fueled user base growth. That year, mydlink Cloud Services 1 Source: Gartner, Market Share: Enterprise Network Equipment by Market Segment, Worldwide, 4Q13 and 2013. 2 Source: D-Link 2013...

  • Page 4
    ... of its location around the world - effectively penetrates the market. The Company's innovative products provide solutions for home and businesses, each built with standards-based reliability. D-Link has become a trusted international brand that connects people to their lives, to their work, and to...

  • Page 5
    ...support for partners. The bestselling products in 2013 were Internet gateways, routers, and xDSL products. The mydlink and new 802.11ac product lines are earning recognition in the Russian market and promise further growth. Plans include expanding local production, extending the distribution network...

  • Page 6
    ... PoE switch market. On top of this, increasing business wireless sales and the delivery of more D-Link Assist contracts through the channel added value to the overall proposition. In the consumer market, the focus was to drive sales of mydlinkâ„¢ Cloud Services products, including routers, cameras...

  • Page 7
    ... home applications such as HD streaming, online gaming and video calling. The router's unique design, selection of colors, and high performance gave customers a reason to choose D-Link. Social media continued to be a key channel for engaging customers. Facebook and Twitter were used to share product...

  • Page 8
    ...video streaming. For those on a limited budget, the DIR-820L and DIR-810L offer a more affordable way of taking advantage of Wireless AC speeds. Software updates to the free QRS Mobile app and a new, innovative user interface sweeten the deal by making configuration of the D-Link Cloud Routers quick...

  • Page 9
    ...term goal of helping businesses minimize their carbon footprint. As an end-to-end solution provider, D-Link offers value-added products that extend across all areas of network infrastructure including switching, security, wireless, IP surveillance, and storage. ACHIEVEMENTS FOR 2013: The ICSA Labs...

  • Page 10
    ... roaming at home. Products supporting multiple media, such as power lines, coaxial cables and phone lines will be available to Telcos and MSOs in the second half of 2014 for field trials. Service Provider Solutions D-Link continued expanding its mobile broadband and data offload product lines to...

  • Page 11
    ... one-stop surveillance solution, comprised of IP surveillance cameras, switches, storage, and software, offers unbeatable flexibility. No matter whether at home, in the office, or anywhere else, D-Link helps customers connect to more with differentiated, high-value products. Producing goods for...

  • Page 12
    .... D-Link Cloud Routers like the DIR-868L use the latest Wireless AC technology to provide homes and small businesses with high-speed wireless access to the Internet. With mydlink Cloud Services, users can set up, control, and monitor their home network from anywhere by using the mydlink Lite app or...

  • Page 13
    ... Office # 84, Al Khaleej Building Opp. King Fahd Road, Olaya Riyadh Saudi Arabia TEL: +966-1-217-0008 FAX: +966-1-217-0009 URL: www.dlinkmea.com Korea Rm. 306, Samsung IT Valley, 197-5, Guro-Dong, Guro-Gu, Seoul, 152-743 Korea TEL: +82-2-2028-1810 FAX: +82-2-2028-1829 URL: www.d-link.co.kr Latin...

  • Page 14
    www.dlink.com D-Link, D-Link logo, D-Link sub brand logos, and D-Link product trademarks are trademarks or registered trademarks of D-Link Corporation and its subsidiaries. All other third party marks mentioned herein are trademarks of their respective owners. Copyright ©2013 D-Link Corporation. ...

  • Page 15
    D-LINK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS December 31, 2013 and 2012 (With Independent Auditors' Report Thereon)

  • Page 16
    ... the combined f inancial statements of D-LINK CORPORATION as of and for the year ended December 31, 2013, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included...

  • Page 17
    ... by Certified Public Accountants." Those standards and regulations require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts...

  • Page 18
    ... December 31, 2013, and December 31 and January 1, 2012, and their financial performance and their consolidated cash flows for the years then ended, in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards...

  • Page 19
    D-LINK CORPORATION AND SUBSIDIARIES Consolidated statement of financial position December 31, 2013, and December 31 and January 1, 2012 (Expressed in thousands of New Taiwan Dollars) 1100 1110 1150 1170 1180 1200 1220 130X 1410 Assets Current assets: Cash and cash equivalents(note 6(a)) Financial ...

  • Page 20
    ... Other comprehensive income: Foreign currency translation differences Changes in fair value of available-for-sale financial assets Defined benefit plan actuarial gains (losses) Share of other comprehensive income of associates accounted for using equity method Less: Income tax on other comprehensive...

  • Page 21
    ...share-based payment transaction Changes in equity of associates accounted for using equity method Purchase of treasury share Changes in non-controlling interests Balance on December 31, 2012 Profit for 2013 Other comprehensive income for 2013... earnings foreign e financial reserve reserve operations ...

  • Page 22
    ...LINK CORPORATION and subsidiaries Consolidated statement of cash flows For the years ended December 31, 2013 and 2012 (Expressed in thousands of New Taiwan Dollars) 2013... Payments to acquire treasury shares Net cash flows used in financing activities Effect of exchange rate changes on cash and cash ...

  • Page 23
    ... wireless local area computer networks ("LANs"), and spare parts for integrated circuits. 2. Authorisation date and process of Financial statements The accompanying consolidated financial statements were approved and authorized for release by the Board of Directors on March 6, 2014. 3. New standards...

  • Page 24
    ... may change the ways of determining whether an entity has control over the investee and is expected to increase the disclosures of subsidiaries' and associates' equities. Replaces fair value measurement guidance in other standards, and consolidates as a single guidance. The Consolidated Company may...

  • Page 25
    3 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements New standards and Issue date amendments Description Effective date January 1, 2014 (available for early adoption) per IASB May 29, 2013 Amended IAS 36 Impairment of Prior to the amendments, an entity was Assets...

  • Page 26
    ...sales service Marketing and after-sales service Marketing and after-sales service Marketing and after-sales service D-Link and D-Link Sudamerica S.A. D-Link Holding (D-Link Sudamerica) D-Link and D-Link Brazil LTDA D-Link Holding (D-Link Brazil) T he Company D-Link Latin America Company Ltd.(D-Link...

  • Page 27
    ... T he Company and D-Link Middle East FZCO (D-Link ME) D-Link International D-Link International D-Link International D-Link Korea Limited (D-Link Korea) D-Link T rade M (D-Link Moldova) Principal activity Marketing and after-sales service Marketing and after-sales service Marketing and after...

  • Page 28
    ..., 2013 2012 2012 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Note D-Link (Shiang-hai) Co., Ltd Marketing and (DCN) after-sales service Netpro Trading (Shiang-hai) Marketing...

  • Page 29
    ... An entity shall classify all other liabilities as non-current. (f) Cash and cash equivalents Cash and cash equivalents comprise cash balances, call deposits and all highly liquid investments subject to insignificant risk of changes in value. A time deposit is qualified as a cash equivalent when it...

  • Page 30
    ... in other profit and loss. A regular way purchase or sale of financial assets shall be recognized and derecognized, as applicable, using trade-date accounting. Investments in equity instruments that do not have a quoted market price in an active market, and whose fair value cannot be reliably...

  • Page 31
    ... cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss is not reversible in subsequent periods. An impairment loss in respect of a financial asset is deducted from the carrying amount, except for trade receivables, for which an impairment...

  • Page 32
    ... be assessed at the current fair value, and the differences shall be recorded under valuation gain (loss) on financial instruments. At the end of agree-upon sell back period, the fair value of the sell options shall be all transferred to capital surplus if the market price of the convertible common...

  • Page 33
    ...LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (ii) Financial liabilities at fair value through profit or loss A financial liability is classified in this category if it is classified as held-for-trading or is designated as such on initial recognition. A financial...

  • Page 34
    ...LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (h) Inventories The cost of inventories shall comprise all costs of purchase and other costs incurred in bring the inventories to their present location...business, for use in the production or supply of goods or services...

  • Page 35
    ... are as follows: (i) (ii) Buildings and improvements: 5~56 years Transportation, office equipment and others: 2~9 years Depreciation methods, useful lives, and residual values are reviewed at each reporting date. If expectations differ from the previous estimates, the change(s) is accounted for as...

  • Page 36
    ... asset with a finite useful life shall be reviewed at least annually at each fiscal year-end. Any change shall be accounted for as changes in accounting estimates. (n) Impairment - non-derivative financial assets The Consolidated Company assesses at the end of each reporting period whether there is...

  • Page 37
    ... when the underlying products or services are sold. The provision is based on historical warranty data and a weighting ...shares should be calculated using the weighted average of different types of repurchase. During the cancellation of treasury shares, Capital Reserve - Share Premiums and Share...

  • Page 38
    ... value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is the yield at the reporting date (market yields of high-quality corporate bonds) on bonds that have maturity dates approximating the terms of the Company's obligations and that are...

  • Page 39
    ...LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company...the number of awards whose related service and non-market ...

  • Page 40
    ...shall be reviewed at the end of each reporting period ...Company, divided by the weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, such as convertible notes, employee stock options , and employee bonus settled using shares...

  • Page 41
    ...the actual market price. This valuation model use only observable data as much as possible. As regards to the credit risks (counterparty credit risk), management has to estimate its fluctuations and its correlations. (b) Impairment assessment on intangible assets The Consolidated Company will assess...

  • Page 42
    ...products and services. Based on the legal consultants of the Consolidated Company, management...Company shall use judgments and estimations to determine the actuarial assumptions, including discount rate and expected return on plan assets, at the end of the reporting period. Any change... 31, 2013 Cash on...

  • Page 43
    21 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (b) Financial Assets and Liabilities (1) Information of financial assets and liabilities are as follows December 31, 2013 Financial assets at fair value through profit or loss - current Beneficiary certificates - ...

  • Page 44
    22 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements December 31, 2013 Financial assets carried at cost - noncurrent: QuieTek Corporation (QUIETEK) Azure Venture Partners I, L.P. Global Mobile Corp. ID Branding Fund Inc. Others $ 22,500 28,500 11,714 168,402 105,688...

  • Page 45
    23 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (i) Derivative financial assets December 31, 2013 December 31, 2012 January 1, 2012 Contract Maturity Contract Maturity Contract Maturity amount Currency amount Currency date date amount Currency date Cross ...

  • Page 46
    24 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements December 31, 2013 December 31, 2012 January 1, 2012 Contract Maturity Contract Maturity Contract Maturity amount Currency date amount Currency date amount Currency date Foreign currency option contracts: Call ...

  • Page 47
    ...LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements The movements in the allowance on notes, accounts receivable and other receivables in 2013 and 2012 were as follows: Individually assessed impairment Balance at January 1, 2013... 31, 2013 Finished goods Less: provision...

  • Page 48
    ...131,608 11,979,480 2012 27,596,897 686,029 The market value of publicly listed or OTC investees of the Consolidated Company accounted for under using the equity method were as follows: December 31, 2013 December 31, 2012 3,401,878 300,921 3,702,799 January 1, 2012 3,784,812 306,528 4,091,340 ALPHA...

  • Page 49
    27 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (f) Property, plant and equipment The cost, depreciation and impairment loss of the property, plant and equipment of the consolidated company in 2013 and 2012 are as follows: 2013 Balance as of January 1, 2013 ...

  • Page 50
    28 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements As of December 31, 2013, and December 31 and January 1, 2012, no property, plant and equipment are pledged as collateral. (g) Investment property 2013 Balance as of January 1, 2013 Increase Cost: Land Buildings ...

  • Page 51
    ...LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements December 31, 2013..., both in location and category. As of December 31, 2013, and December 31...company are as follows: 2013 Balance as of January 1, 2013 Goodwill Trademark Distribution channel Patents Computer software...

  • Page 52
    30 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (i) Long-term and short-term loans The details requirements and articles of the long-term and short-term loans of the consolidated company are as follows: (1) Short-term Loans Currency Interest rate Secured bank ...

  • Page 53
    ... Company issued unsecured convertible corporate bonds of $2,000,000 thousand. The coupon rate is zero, and the bonds will mature after 5 years. The bonds started to trade on January 13, 2010. As of the reporting date, no convertible corporate bonds had been converted into common shares. (Continued...

  • Page 54
    ... The conversion price is calculated by using the simple average closing price of the Company's common shares based on either one, three or five consecutive business days before the effective date of January 5, 2010, multiplied by 111.66% of the conversion premium rate. The conversion price is...

  • Page 55
    ...LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements As the market value of the common stock converted at the redemption date is less than the par value of the redeemed units of the convertible bonds, the Consolidated Company...plan assets are as follows: December 31, 2013...

  • Page 56
    ... fund, please refer to the website of the Labor Pension Fund Supervisory Committee. (ii) Movements in the present value of the defined benefit obligations were as follows: 2013 Defined benefit obligation at January 1 Benefits paid by the plan Current service cost and interest Actuarial (gain) loss...

  • Page 57
    ... as follow: 2013 Current service cost Interest cost on the defined benefit obligation Expected return on plan assets Actuarial return on plan assets $ 2,272 2,823 (2,455) 2012 1,771 2,797 (2,864) $ $ 2,640 1,791 1,704 1,357 The Company's paid retirement expenses for the year ended December 31...

  • Page 58
    ... plans for the one year period after the reporting date is $8,044 thousand. (viii) When calculating the present value of the defined benefit obligations, the Company uses judgments and estimations to determine the actuarial assumptions, including employee turnover rates and future salary changes...

  • Page 59
    37 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (n) Income Taxes Income tax expenses for the years ended December 31, 2013 and 2012, are summarized as follows: 2013 Current income tax expense Deferred income tax expense $ 128,578 (58,607) 2012 264,161 28,883 $...

  • Page 60
    ...LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (2) Recognized deferred tax assets and liabilities The movements in the amount of deferred tax assets and liabilities for the years 2013... 1, 2013 Recognized ... 31, 2013$ 204,...2013, the Consolidated Company's ending...

  • Page 61
    ...LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements In accordance with the laws of each registered country, the assessed losses can be used to offset current... Preparation of Financial Reports by Securities Issuers and IFRS endorsed by the FSC. 2013 (estimated) Creditable...

  • Page 62
    ...Capital surplus included the income was derived from the issuance of new shares at a premium and income from the endowments received by the company. According to the current Securities and Futures Bureau regulations, capitalization of capital surplus cannot exceed a rate of ten percent. (Continued)

  • Page 63
    ... the distributable earnings for the current year. In order to adjust to the overall business environment, industry growth characteristics, long-term financial planning, and corporate sustainable management, the Company adopts a residual dividend policy. The Company will distribute capital in excess...

  • Page 64
    ... to the website of the Market Observation Post System. (4) Treasury stock Under Article 28-2 of the Securities and Exchange Act, the Company's board of directors passed a resolution on January 14, 2013, June 22, and October 30, 2012 and March 23, 2011 to buy back its shares from the open market and...

  • Page 65
    43 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (5) Other equity Foreign exchange Unrealized gains differences arising and losses on from foreign available-for-sale operations financial assets Balance at January 1, 2013 $ Foreign exchange differences (net of ...

  • Page 66
    ... 2007.12.28~ 2009.12.27 2009.10.5~ 2011.10.4 Original exercise price ($) $ 56.60 28.45 Adjusted exercise price ($) 47.47 24.49 In 2013, the Company declared a cash dividend and adjusted the exercise price under the employee stock option plan 1 and 2 to $44.90 and $23.15, respectively on July 27...

  • Page 67
    ... liability for continuing service plan (5) $ $ 129,459 - 124,171 13,568 A summary of the Company's employee stock option plans and related information for the years ended December 31, 2013 and 2012 are as follows: (i) Employee stock option plan 1: 2013 Weighted-average exercise price (NTD) 44.90...

  • Page 68
    ...EPS, and the assumptions used would be as follows: Expected price volatility Risk-free rate Expected time to expiration (years) Fair value per share Assumptions 30.89 ï¼... 2.725 ï¼... 6 13.1 (7) The Company utilized the Black-Scholes pricing model to value employee stock option plan 2, and the fair...

  • Page 69
    ... the effects of all dilutive potential ordinary shares, the average market value is based on the quoted market price during the outstanding periods. (r) Revenue The operating income of the Consolidated Company in 2013 and 2012 is as follows: 2013 Goods sold Services $ $ 30,444,084 114,390 30,558...

  • Page 70
    48 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (s) Other income The details of other income of the Consolidated Company in 2013 and 2012 were as follows: 2013 Interest revenue Rental revenue Dividends revenue Royalty revenue Others $ 42,275 2,576 33,913 682 ...

  • Page 71
    .... Book value December 31, 2013 Non-derivative financial liabilities Long-term loans Bonds payable Accounts payable Accounts payable to related parties Other payables Current portion of long-term liabilities Derivative financial liabilities Forward exchange contracts used for hedging: Outflow Inflow...

  • Page 72
    50 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements Book value Foreign exchange swap contracts used for hedging: Outflow Inflow Option contracts used for hedging: Outflow Inflow January 1, 2012 Non-derivative financial liabilities Long-term loans Notes payable ...

  • Page 73
    51 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (3) Currency risk (i) The Consolidated Company's significant exposure to foreign currency risk was as follows: 2013 Foreign Exchange currency rate Financial assets (note): M onetary items: CLP JPY CAD USD M XN ...

  • Page 74
    ...throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.5% when reporting to management internally, which also represents management of the Consolidated Company's assessment on the reasonably possible interval of interest rate change. All other variables...

  • Page 75
    ...either directly (i.e. as prices) or indirectly (i.e. derived from prices). c) Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs). Level 1 December 31, 2013 $ Available-for-sale financial assets － non-current Financial assets at fair value...

  • Page 76
    ... set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Consolidated Company's activities. The Consolidated Company, through training and management standards...

  • Page 77
    ... regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Board of Directors and Supervisors. (3) Credit risk Credit risk is the risk of financial loss to the Consolidated Company if a customer or counterparty to a financial instrument fails to...

  • Page 78
    ... risk that changes in market prices, such as changes in foreign exchange rates, interest rates or equity prices that affects the Consolidated Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures...

  • Page 79
    ...widely used as fixed income investments in domestic, with large market scale, stable market prices, and high liquidity. The Consolidated Company is held for the purpose of short-term capital allocation with a period of approximately 3 months. The finance department will monitor the changes in market...

  • Page 80
    ... of December 31, 2013, the methods of Consolidated Company's capital management remained unchanged. 7. Related-party transactions (a) Parent company and ultimate controlling company The Company is the ultimate controlling party of the Consolidated Company. (b) Significant related party transactions...

  • Page 81
    59 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (3) Accounts receivable due from related parties The accounts receivable due from related parties were as follows: Account Related party categories December 31, 2013 $ 9,668 53 $ 13,207 3,486 December 31, 2012 5,...

  • Page 82
    ... 14,482 Other non-current liabilities December December January 1, 31, 2013 31, 2012 2012 5,571 6,253 - The Company $ (c) Key management personnel compensation Key management personnel compensation comprised: 2013 Short-term employee benefits Post-employee benefits Share-based payments $ 107,467...

  • Page 83
    ... its current operations. (f) Innovative Wireless Solutions LLC filed a lawsuit against the Company's subsidiary D-Link Systems in November 2013 alleging that some of the Company's products infringed upon its patents. The Company has retained attorneys in the US and is currently building its defense...

  • Page 84
    ...information As the major products of the Consolidated Company (computer networks systems, equipment and ...Company uses the internal management report that the chief operating decision maker reviews as the basis to determine resource allocation and make a performance evaluation. 2013 Emerging markets...

  • Page 85
    ... operated in research, development and selling of computer network and equipment and wireless communication products. The Consolidated Company's reportable segments are strategic business units that offer geographical products and services. The Consolidated Company does not allocate tax expense to...

  • Page 86
    ... the Consolidated Company was as follow: Products and services Switch Wireless Broadband Digital Home Others Service revenue Total (d) Geographic information Country Revenue from external customers: United States Other countries Non-current assets Taiwan India Other countries Total $ $ $ 2013 3,230...

  • Page 87
    ... table and notes. (a) The Consolidated Company applied IFRS 1 First-time Adoption of International Financial Reporting Standards endorsed by FSC as follows: (1) Optional exemptions selected are summarized as follows: (i) Business combinations The Consolidated Company elected not to apply IFRS...

  • Page 88
    66 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (b) Reconciliation of consolidated balance sheet RO C Assets Cash and cash equivalents Financial assets at fair value through profit or loss â"€ Current Notes receivable, net Accounts receivable, net Accounts ...

  • Page 89
    ...Other comprehensive income : Foreign currency translation differences Changes in fair value of available-for-sale financial assets Defined benefit plan actuarial gains (losses) Share of other comprehensive income of associates accounted for using equity method Less: Income tax on other comprehensive...

  • Page 90
    68 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (e) Explanations for the reconciliations (1) The Consolidated Company reclassified its own certificates of deposit having maturity of more than one year into other non-current assets. Impacts of this change are ...

  • Page 91
    69 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (4) Investments accounted for using equity method (i) An associate accounted for using the equity method assesses any possibilities of material discrepancy between the current accounting policies and the future ...

  • Page 92
    70 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements Impacts of this change are hereby summarized as follows: December 31, 2012 Consolidated balance sheets Investments accounted for using equity method Exchange differences on translation of foreign financial ...

  • Page 93
    ... However, under IFRSs, when the employees render services that increase their entitlement to future compensated absences, the Consolidated Company should recognize the expected cost at the end of reporting periods. Impacts on this change are hereby summarized as follows: 2012 Consolidated statements...

  • Page 94
    ...194 24,667 (20,473) January 1, 2012 3,407 20,033 (16,626) In accordance with IFRS 1 First-time Adoption of International Financial Reporting Standards, the Consolidated Company elected to recognize all cumulative actuarial gains and losses relating to employee benefits at the date of transition to...

  • Page 95
    ...unvested, the use of the intrinsic value was required to recognize an employee cost of the share option plan. However, under IFRSs, it's required to measure based on the fair value at grant date, and to be adjusted retrospectively at the date of transition to IFRSs. Impacts on this change are hereby...

  • Page 96
    74 D-LINK CORPORATION AND SUBSIDIARIES Notes to the consolidated financial statements (13) Under ROC GAAP, when equity instruments of a parent company have been granted to a subsidiary, those share-based payment transactions are considered as equity settled to adjust capital surplus on the ...