62ACER INCORPORATED AND SUBSIDIARIESNotes to <strong>Consolidated</strong> <strong>Financial</strong> <strong>Statements</strong> (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 <strong>Financial</strong>Reporting 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 <strong>Consolidated</strong> 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 <strong>Consolidated</strong> 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$External revenue 464,565,678 15,282,357 (4,506,044) 475,341,991Intra-group revenue 2,217,893 1,548,695 (3,766,588) -Total segment revenue 466,783,571 16,831,052 (8,272,632) 475,341,991Segment profit (loss) 551,517 461,055 (7,408,771) (6,396,199)Segment assets - - - -(Continued)
63ACER INCORPORATED AND SUBSIDIARIESNotes to <strong>Consolidated</strong> <strong>Financial</strong> <strong>Statements</strong> (continued)2010Device BG OthersAdjustments andeliminations TotalNT$ NT$ NT$ NT$External revenue 614,293,772 15,473,005 (707,804) 629,058,973Intra-group revenue 2,005,923 1,499,239 (3,505,162) -Total segment revenue 616,299,695 16,972,244 (4,212,966) 629,058,973Segment profit 20,730,796 484,999 (3,011,882) 18,203,913Segment assets - - - -(note 1) On June 1, 2011, the Company‟s board of directors resolved to provide one-time sales allowanceof NT$4,320,000 (approximately US$ 150,000) to EMEA distributors. This sales allowancewas not allocated to the reportable segments.(note 2) The measure of segment assets is not provided to the chief operating decision maker. As aresult, no disclosure was made for such purpose.(2) General information(a) Product informationProducts 2011 2010NT$ US$ NT$Personal computers 402,454,705 13,286,719 540,327,709Peripherals and others 72,887,286 2,406,315 88,731,264475,341,991 15,693,034 629,058,973(b) Geographic informationExternal salesRegion 2011 2010NT$ US$ NT$Europe, Middle East and Africa 168,135,981 5,550,874 296,864,914Pan America 123,579,577 4,079,880 155,467,872Asia 157,276,477 5,192,357 141,883,545Taiwan 26,349,956 869,923 34,842,642475,341,991 15,693,034 629,058,973(Continued)