Consolidated Financial Statements - Acer Group

48ACER INCORPORATED AND SUBSIDIARIESNotes to Consolidated Financial Statements (continued)supervisors had voluntarily surrendered their 2010 remunerations of NT$53,682 in 2011. Thedifference was treated as a change in accounting estimate and charged to profit and loss in 2011.The amounts of 2009 employee bonus and remuneration to directors and supervisors, which wereaccrued and recognized in 2009, were the same as those approved by the Company‟s directors forthe year 2009. The related information is available at the Market Observation Post Systemwebsite.No employee bonus and remuneration to directors and supervisors were accrued and recognized forthe year ended December 31, 2011, as the Company had incurred a net loss in 2011.(21) Stock-based compensation plansInformation on the employee stock option plans (“ESOPs”) granted in 2011 and 2010 was as follows:2011 2010Grant date 2011/06/15 2010/10/29Granted shares (in thousands) 10,000 4,000Contractual life (in years) 3 3Vesting period2 years of servicesubsequent to grant date2 years of servicesubsequent to grant dateQualified employees (note 1) (note 1)Note 1: The options are granted to eligible employees of the Company and its subsidiaries, in whichthe Company directly or indirectly, owns 50% or more of the subsidiary‟s voting shares.The Consolidated Companies utilized the Black-Scholes pricing model to value the stock optionsgranted. The fair value of the option and main inputs to the valuation models were as follows:2011 2010Exercise price (NT$) $ 28.22 48.90Expected remaining contractual life (in years) 3 3Fair market value for underlying securities-Acercommon shares (NT$) $ 51.30 88.90Fair value of options granted (NT$) $ 25.777 44.657Expected volatility 34.46% 34.97%Expected dividend yield note 2 note 2Risk-free interest rate 1.345% 1.22%Note 2: According to the employee stock option plan, option prices are adjusted to take into accountdividends paid on the underlying security. As a result, the expected dividend yield isexcluded from the calculation.(Continued)