Consolidated Financial Statements - Acer Group

62ACER INCORPORATED AND SUBSIDIARIESNotes to Consolidated Financial Statements (continued)3. The Company‟s associates accounted for using the equity methodhave also assessed the significant differences between theirrespective existing accounting policies and IFRSs.(6) The Company‟s aforementioned assessment may not result in an adjustment due to the exemptionelected by the Company according to IFRS 1 “First-time Adoption of International FinancialReporting Standards”. In addition, those preliminary assessments are evaluated based on the IFRSstranslated by ARDF and issued by FSC. The significant GAAP differences between the existingaccounting policies and those of IFRSs were identified based on the current economic conditions andevents. These differences may change depending on the changes in the economic conditions andevents which may occur in the future.11. Operating Segment information(1) Industry financial informationThe Consolidated Companies‟ reportable segments are the device business group (Device BG) andother business group. The Device BG engages mainly in the research, design, marketing and serviceactivities of personal computers, IT products and tablet computers. Other business group which doesnot meet the quantitative threshold mainly engages in the activities of E-commerce, distribution of ITproducts, and the sale of smart handheld and financial PDA products.Non-operating income and loss, income tax expense and non-recurring gain or loss are not allocatedto reportable segments. The Consolidated Companies use the operating profit as the measurementfor segment profit and the basis of performance assessment. The reporting amount is consistent withthe report used by chief operating decision maker. There was no material inconsistency between theaccounting policies adopted for the operating segment and the accounting policies described in Note2.2011Device BG OthersAdjustments andeliminations TotalNT$ NT$ NT$ NT$External revenue 464,565,678 15,282,357 (4,506,044) 475,341,991Intra-group revenue 2,217,893 1,548,695 (3,766,588) -Total segment revenue 466,783,571 16,831,052 (8,272,632) 475,341,991Segment profit (loss) 551,517 461,055 (7,408,771) (6,396,199)Segment assets - - - -(Continued)