Contents - MiTAC

More documents

Recommendations

Info

MITAC INTERNATIONAL CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2003 AND 2002 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) 1. HISTORY AND ORGANIZATION 1) MITAC International Corp. (〝the Company〞) was incorporated under the provisions of the Company Law of the Republic of China (R.O.C) on December 8, 1982 and started its operation on December 15, 1982. The main activities of the Company include the design, manufacture, sales and services of micro-computers and related products as well as other related investments. As of December 31, 2003, there were 10,314 employees in the Company and its subsidiaries. 2) Consolidated subsidiaries Relationship with Rates of direct and Company name related parties Main operating items indirect ownership Silver Star Developments Ltd. (SSDL) and its subsidiaries Holding shares more than 50% interest 3) Majority owned subsidiaries excluded in the consolidation - 51 - 2003 2002 Investment 100% 100% Company name Rates of direct and indirect ownership Reasons for exclusion 2003 2002 Tsu Fung Investment Corp. (TFC) 100% 100% Total assets and operating revenue are less than 10% of the Company’s non-consolidated total assets and operating revenue, and the combined total assets or operating revenues of all such non-consolidated subsidiaries are less than 30% of the Company’s non-consolidated total assets and operating revenue. So Fung Investment Co., Ltd. 100% 100% 〃 Mio Technology Corp. 100% 100% 〃 MITAC Precision Technology Corp. (MPT) and its subsidiaries 49.37% 57.50% Rates of ownership is less than 50% in 2003. 4) Adjustment for the effect of different accounting period adopted by the consolidation subsidiaries and that of the Company: Some of SSDL’s subsidiaries adopted accounting period that are different from the Company’s accounting period. However as the difference is not over 3 months, the financial reports of these subsidiaries are consolidated without any adjustment. 5) Exceptional risks of foreign subordinate companies: None. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are prepared in accordance with the “Rules Governing the Preparation of Financial Statements of Securities Issuers” and generally accepted accounting standards in the Republic of China. 1) Basis of consolidation The financial statements of subsidiaries in which the Company owns more than 50% of the subsidiaries’ shares are included in consolidation except as noted below. All inter-company accounts and transactions have been eliminated in the consolidated financial statements. Pursuant to R.O.C Financial Accounting Standard (“FAS”) 7 and the regulations of R.O.C. Securities and Futures Commission (“SFC”), subsidiaries are consolidated, except as noted below. Subsidiaries with negative stockholders equity or with total assets and total operating revenue for the current year less than 10% of the Company’s non-consolidated total assets and operating revenues are not included in the consolidated financial statements. Irrespective of the above test, if the
combined total assets or operating revenues of all such non-consolidated subsidiaries exceed 30% of the Company’s non-consolidated total assets or operating revenue, then each individual subsidiary with total assets or operating revenue of more than 3% of the Company’s non-consolidated total assets or operating revenues shall be consolidated. 2) Translation of foreign currency transactions The accounts of the Company and its consolidated subsidiaries are maintained in their functional currencies. Transactions denominated in foreign currencies, except for forward contracts, are translated into their functional currencies at the rates of exchange prevailing on the transaction dates. Receivables, other monetary assets and liabilities denominated in foreign currencies are translated into their functional currencies at the rates of exchange prevailing at the balance sheet date. Exchange gains or losses are included in the current year's net income. The financial statements of foreign subsidiaries are translated into New Taiwan dollars using the exchange rates prevailing at balance sheet date for asset and liability accounts, average exchange rates for profit and loss accounts and historical exchange rates for equity accounts. The cumulative translation effects for subsidiaries using functional currencies other than New Taiwan dollar are included in the cumulative translation adjustment in stockholders’ equity. 3) Derivative financial instruments The foreign currency amounts on non-speculative forward contracts are translated into New Taiwan dollars using the spot rate at the date of inception of the contract. The difference between the contract forward rate and the spot rate is amortized over the life of the forward contract. The foreign currency amounts of outstanding contracts are also translated into New Taiwan dollars at the rates of exchange prevailing at the balance sheet date. Exchange gains or losses are included in determining current year's net income. Exchange gains or losses accounted for at the date when a forward contract has expired are also included in determining net income for the current year. Premiums on foreign currency options are translated into New Taiwan dollars using the spot rate at the date of inception of the contract and are amortized over the life of the contract. Unrealized gain or losses for known foreign currency transactions are recognized in current year’s earnings but unrealized gain or losses for foreign currency commitments are deferred until the underlying transaction is recorded, unless deferral will result in recognizing losses in later period. The foreign currency amounts on non-speculative swap contracts are translated into New Taiwan dollars using the spot rate at the date of inception of the contract. Unrealized gain or losses for known foreign currency transactions are recognized in current year’s earnings but unrealized gain or losses for foreign currency commitments are deferred until the underlying transaction is recorded, unless deferral will result in recognizing losses in later period. 4) Cash equivalents Cash equivalents are short-term, highly liquid investment, which are readily convertible to known amounts of cash and with maturity dates that do not present significant risk of changes in value because of changes in interest rates. 5) Marketable securities Marketable securities are recorded at cost when acquired. The carrying amount of the marketable securities portfolio is stated at the lower of its aggregate cost or market value at the balance sheet date. 6) Allowance for doubtful accounts Allowance for doubtful accounts is provided based on the collectibility of accounts - 52 -
Page 1 and 2: Contents A.Report To Shareholders..
Page 3 and 4: Innovations in product R&D and work
Page 5 and 6: 4.Integrate Group resources, contin
Page 7 and 8: 1990 - In response to rapid busines
Page 9 and 10: MiTAC International's US subsidiary
Page 11 and 12: 2.1.2 Responsibilities of Major Dep
Page 13 and 14: Major Institutional Shareholders Ap
Page 15 and 16: Title Name Date Took Office Shares
Page 17 and 18: 3. Capital and Shares, Corporate Bo
Page 19 and 20: 3.5 Market Price, Net Value, Earnin
Page 21 and 22: 3.8 Treasury Stock Aapril 1, 2004 S
Page 23 and 24: 3.10 Employee Stock Options 3.10.1
Page 25 and 26: 1.1.3 New Products and Technologies
Page 27 and 28: this platform are being aggressivel
Page 29 and 30: 1.3.2 Technologies and Products Suc
Page 31 and 32: 1.4.3. Wireless communications prod
Page 33 and 34: (3) Wireless Communications Product
Page 35 and 36: C.Expand development of high value-
Page 37 and 38: 2.3 Supply of Key Components Compon
Page 39 and 40: As a professional computer assembly
Page 41 and 42: 8. Acquisition or Disposition of As
Page 43 and 44: 1.2 Concise Profit/Loss Statment Un
Page 45 and 46: 2.1 Financial Structure (1) Debt ra
Page 47 and 48: MITAC INTERNATIONAL CORP. AND SUBSI
Page 49 and 50: MITAC INTERNATIONAL CORP. AND SUBSI
Page 51: MITAC INTERNATIONAL CORP. AND SUBSI
Page 55 and 56: 11) Deferred charges A. Telephone i
Page 57 and 58: 3) Mitac Precision Technology Co.,
Page 59 and 60: D. Tsu Fung Investment Corp. was no
Page 61 and 62: 11) OTHER LIABILITIES December 31,
Page 63 and 64: B. Undistributed earnings (a) In ac
Page 65 and 66: C. Components of deferred income ta
Page 67 and 68: 19) PERSONNEL EXPENSES, DEPRECIATIO
Page 69 and 70: E. Accounts payable December 31, 20
Page 71 and 72: 11. SPECIAL DISCLOSURE ITEMS A. Inf
Page 73 and 74: Investor Types Name of marketable s
Page 75 and 76: The company buying /selling product
Page 77 and 78: Item Sales of forward foreign excha
Page 79 and 80: Investor Investee Company 〃 Proco
Page 81 and 82: (4) The detail of marketable securi
Page 83 and 84: (8) Purchases or sales transactions
Page 85 and 86: C. Relevant Information Regarding I
Page 87 and 88: The prices that the Company and thi
Page 89 and 90: In order to reconcile the amounts o
Page 91 and 92: 2. Analysis of Business Results Yea
Page 93 and 94: 6. Risk Management 6.1 Influence of
Page 95 and 96: 6.5.2 Server Product Series: Due to
Page 97 and 98: Item Status 3. Designation of super
Page 99 and 100: 1. Information on Affiliates 1.1 Co
Page 101 and 102: 1.1.2 Affiliated Companies—Basic
Page 103 and 104:
1.1.3 Business and Inter-Relationsh
Page 105 and 106:
1.1.4 Directors, Supervisors, Gener
Page 107 and 108:
Company Name Title Name or Represen
Page 109:
1.1.5 Operations Overview of Afflia
show all

Contents - MiTAC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?