Consolidated Financial Statements - Acer Group

More documents

Recommendations

Info

60ACER INCORPORATED AND SUBSIDIARIESNotes to Consolidated Financial Statements (continued)Contents of planResponsibleDivisionStatus ofexecution◎ Modify the information technology systems and internal IFRS project team Completedcontrols◎ Internal training for the employees within the group IFRS project team Completed3) Implementation phase (2012/1/1~2013/12/31)◎ Test run the related adjusted information technology IFRS project team In progresssystems◎ Collect related information for the preparation of opening IFRS project team In progressbalance sheet and comparative financial statements inaccordance with IFRSs◎ Prepare financial statements in accordance with IFRSs Finance Division In progress(5) As of December 31, 2011, based on the Company‟s assessment, the major differences between R.O.C.GAAP and IFRSs to be adopted by the Company are as follows:EmployeeBenefits-defined benefitplansEmployeeBenefits-accumulatedcompensated absencesFunctional CurrencyProperty, Plant andEquipment (PP&E)Under R.O.C. GAAP, actuarial gains and losses from defined benefitplans are not recognized directly to equity; instead, actuarial gains andlosses should be accounted for under the corridor approach whichrequires the deferral of gains and losses. Under the corridor approach,actuarial gains and losses are amortized over the expected averageremaining working lives of the participating employees.Under IAS No. 19, “Employee Benefits,” the Company elects torecognize actuarial gains and losses immediately in full in the period inwhich they occur, as other comprehensive income (loss). Therefore, theCompany recognizes the cumulative actuarial gains and losses at the dateof transition to IFRS as an adjustment to opening retained earnings.There is no specific guidance on accumulated compensated absencesunder R.O.C. GAAP. However, under IFRSs, an entity shall recognizethe expected cost of accumulated compensated absences whenemployees render service that increases their entitlement to futurecompensated absences.Under R.O.C. GAAP, the Company does not need to determine itsfunctional currency since it is not a foreign operation. Under IFRSs, allentities included in the consolidated financial statements shoulddetermine their functional currency in accordance with IAS 21.Under R.O.C. GAAP, a component which is significant in relation to thetotal cost of PP&E acquired after November 2008 and for which adifferent depreciation method or rate is appropriate is depreciatedseparately. Under IFRSs, when an item of PP&E comprises individualcomponents for which different depreciation methods or useful lives areappropriate, each component is depreciated separately.(Continued)
61ACER INCORPORATED AND SUBSIDIARIESNotes to Consolidated Financial Statements (continued)Investment PropertyClassifications ofdeferred income taxasset/liability andvaluation allowanceOverseas ConvertibleBonds (ECB)Investment inAssociatesUnder IFRSs, the Company should apply IAS 40 “Investment Property”for a property held to earn rental income or for capital appreciation.However, under R.O.C. GAAP, there is no specific guidance oninvestment property.1. Under R.O.C. GAAP, a deferred tax asset or liability is classified ascurrent or non-current in accordance with the classification of itsrelated asset or liability. If the deferred income tax asset or liability isnot directly related to a specific asset or liability, then theclassification is based on the asset‟s or liability‟s expected realizationdate. Under IFRSs, a deferred tax asset or liability is classified asnon-current asset or liability.2. Under R.O.C. GAAP, valuation allowances are provided to theextent, if any, that it is more likely than not that deferred income taxassets will not be realized. Under IFRSs, deferred tax assets are onlyrecognized to the extent that it is probable that there will besufficient taxable profits and the valuation allowance account is nolonger used.The ECB denominated in foreign currency grants an option to thebondholder to convert a fixed number of bonds into a fixed number ofthe Company‟s common shares, using a conversion price set at NewTaiwan Dollars at a fixed exchange rate. Accordingly, the conversionoption is accounted for as an equity under ROC GAAP. However, inaccordance with FAS 32, the conversion option is accounted for as aliability as the Company has a contractual obligation to deliver a fixednumber of common shares in exchange for a variable amount of cash(fixed foreign currency but translated to variable functional currency ofthe Company).1. Changes in ownership percentageUnder R.O.C. GAAP, if an investee company issues new shares andthe Company does not acquire new shares in proportion to itsoriginal ownership percentage, the Company‟s equity in theinvestee‟s net assets will change. The change in the equity interest isadjusted through the capital surplus or retained earnings. However,under IFRSs, the change in the equity interest is recognized in theprofit of loss in the case of decrease of ownership percentage whilethe partial step-up approach is applied in the case of increase ofownership percentage.2. Loss of significant influenceIn accordance with R.O.C. GAAP, when an entity loses significantinfluence over the investees, the adoption of equity method isdiscontinued and the carrying amount of the investment is deemed asthe new cost of the investment. However, under IFRSs, the loss ofsignificant influence is deemed as disposal of the investment andtherefore the disposal gain or loss is recognized thereon.(Continued)
Page 2 and 3:
Independent Auditors’ ReportThe B
Page 4 and 5:
ACER INCORPORATED AND SUBSIDIARIESC
Page 6 and 7:
ACER INCORPORATED AND SUBSIDIARIESC
Page 8 and 9:
2ACER INCORPORATED AND SUBSIDIARIES
Page 10 and 11:
Page 12 and 13:
Page 14 and 15:
Page 16 and 17: 10ACER INCORPORATED AND SUBSIDIARIE
Page 70: 63ACER INCORPORATED AND SUBSIDIARIE
show all

Consolidated Financial Statements - Acer Group

Create successful ePaper yourself

Delete template?

Save as template?