D-Link 2013 Annual Report Download - page 91
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D-LINK CORPORATION AND SUBSIDIARIES
Notes to the consolidated financial statements
(Continued)
(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 accounting policies for
applying IFRSs with the Consolidated Company, mainly including unused sick leave and
adjustments of the unrecognized actuarial gains and losses.
Impacts of this change are hereby summarized as follows:
2012
Consolidated statements of comprehensive income
Non-operating income and expenses
Share of profit (loss) of associates accounted for
using equity method
$ 9,074
Other comprehensive income
Actuarial gains (loss) on defined benefit plans
(35,971)
Adjustment for retained earnings
$ (26,897)
December 31,
2012
January 1,
2012
Consolidated balance sheets
Investments accounted for using equity method
$ (137,753)
(115,226)
Adjustment for retained earnings
$ (137,753)
(115,226)
(ii) In addition, if an investee issues new shares and an investor does not purchase new shares
proportionately, which results in a change in the Consolidated Company’s holding
percentage and its interest in the investee’s net assets, such difference adjusted to capital
surplus, it is not required to adjust the difference retrospectively at the date of transition to
IFRSs. Such capital surplus recorded under ROC GAAP shall be adjusted to retained
earnings at the date of transition to IFRS.
Impacts of this change are hereby summarized as follows:
December 31,
2012
January 1,
2012
Consolidated balance sheets
Capital surplus ─ long-term investments
$ 119,159
140,564
Adjustment for retained earnings
$ 119,159
140,564
(iii) An associate accounted for using the equity method assesses any possibilities of material
discrepancy between the current accounting policies and the IFRSs accounting policies,
which mainly involve the exchange differences on translation and the adjustments of
unrealized gains (losses) on available for sale financial assets. The Consolidated
Company has recognized changes in the associates’ other comprehensive income based on
the proportion of shares held by the Consolidated Company.