Acer to write down intangible assets

By Helen Ku  /  Staff reporter

Wed, Jan 23, 2013 - Page 13

Acer Inc (宏碁), the world’s No. 4 PC brand, yesterday said it is to write down intangible asset impairment for trademark rights for a total of NT$3.5 billion (US$120.1 million) based on the generally accepted accounting principle (GAAP).

The Taiwanese PC vendor said in an e-mailed statement that it will write down intangible asset impairment on trademark rights for its own brands, including Gateway, Packard Bell, eMachines and E-Ten (倚天).

In accordance with the GAAP and thorough assessment, Acer said the write-off would cause its net worth per share to drop by NT$1.3. However, the reduction in its book value would not affect its daily business operations or working capital, the company said.

According to Acer’s financial report for the third quarter last year, after the write-off of intangible impairment assets, the company’s net worth per share fell 4.72 percent from NT$28.8 to NT$27.5. The proportion of intangible assets decreased from 18.6 percent to 17.3 percent of total assets, and the proportion of intangible assets that account for equity decreased from 55.2 percent to 53.1 percent, Acer said.

Last quarter, Acer’s intangible assets were valued at NT$42.6 billion, and the impairment was about NT$3.5 billion, or 8 percent of the total value. After the recognized loss, Acer’s intangible assets were worth NT$39.1 billion.

Acer’s shares closed down 0.6 percent at NT$24.7 in Taipei trading before the announcement of asset writedowns, underperforming the broader market, which gained 0.44 percent.