ACER — Annual Report 2022

Nov 3, 2022

1

Stock Code:2353

ACER INCORPORATED

Parent-Company-Only Financial Statements With Independent Auditors’ Report For the Years Ended December 31, 2022 and 2021

The independent auditors’ report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent-company-only financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Parent-Company-Only Balance Sheets 5. Parent-Company-Only Statements of Comprehensive Income 6. Parent-Company-Only Statements of Changes in Equity 7. Parent-Company-Only Statements of Cash Flows 8. Notes to Parent-Company-Only Financial Statements (1) Organization and business (2) Authorization of the parent-company-only financial statements (3) Application of new and revised accounting standards and interpretations (4) Summary of significant accounting policies (5) Critical accounting judgments and key sources of estimation and assumption uncertainty (6) Significant account disclosures (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Significant loss from disaster (11) Significant subsequent events (12) Others (13) Additional disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Major shareholders (14) Segment information 9. List of major account titles

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電 話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳 真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網 址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors Acer Incorporated:

Opinion

We have audited the parent-company-only financial statements of Acer Incorporated (the “Company”), which comprise the parent-company-only balance sheets as of December 31, 2022 and 2021, and the parent-companyonly statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent-company-only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent-company-only financial statements present fairly, in all material respects, the parent-company-only financial position of the Company as of December 31, 2022 and 2021, and its parent-company-only financial performance and its parent-company-only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent-company-only financial statements of the current period. These matters were addressed in the context of our audit of the parent-company-only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Company’s parent-company-only financial statements for the year ended December 31, 2022 are stated as follows:

1. Revenue recognition

Refer to Note 4(p) for the accounting policies on recognizing revenue, and Note 5(a) for uncertainty of accounting estimations and assumptions for sales returns and allowances, respectively, to the parentcompany-only financial statements.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Description of key audit matter:

The Company engaged primarily in the sale of brand-name IT products. Revenue is recognized depending on the various trade terms agreed with customers. This exposes the Company to the risk that the sales transactions made close to the balance sheet date are not recorded in the appropriate period. Furthermore, the accrual of sales allowances and returns based on business practice is subject to management’s judgment, which involves significant uncertainty. Consequently, the revenue recognition and accrual of sales allowances and returns have been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matters above, we have performed certain audit procedures including, among others, testing the design and operating effectiveness of the Company’s internal controls over the timing of revenue recognition; performing a sample test of sales transactions taking place before and after the balance sheet date to ensure that revenue was recognized in the appropriate period; assessing the methodology used by management in estimating sales allowances and returns, including the reasonableness of key assumptions; and inspecting the historical payments of sales allowances and returns to evaluate the reasonableness of the sales allowances and returns estimated by management.

2. Valuation of inventories

Refer to Note 4(g) for the accounting policies on inventory valuation, Note 5(b) for uncertainty of accounting estimations and assumptions for inventory valuation and Note 6(g) for the details of the write-down of inventories, respectively, to the parent-company-only financial statements.

Description of key audit matter:

Inventories are measured at the lower of cost and net realizable value. Due to the rapid innovation of the information technology products and fierce market competition, the Company’s product price may fluctuate rapidly. Furthermore, the stocks for products and key components may exceed customers’ demands thus becoming obsolete. These factors expose the Company to significant level of uncertainty particularly in the area of estimating net realizable value, which is subject to management’s judgments. Therefore, the valuation of inventories has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain audit procedures including, among others, evaluating whether valuation of inventories was accounted for in accordance with the Company’s accounting policies; obtaining the inventory aging report, analyzing the fluctuation of inventory aging and selecting samples to verify the accuracy of inventory aging classification; and testing the net realizable value of inventories to evaluate the reasonableness of inventory provisions.

3. Impairment of goodwill from investment in subsidiaries

Refer to Note 4(n) for the accounting policies on impairment of non-financial assets, Note 5(c) for uncertainty of accounting estimations and assumptions for goodwill impairment and Note 6(h) for the evaluation of goodwill impairment, respectively, to the parent-company-only financial statements.

3-2

Description of key audit matter:

Goodwill arising from acquisition of subsidiaries, which are included within the carrying amount of investments accounted for using the equity method, is subject to impairment test annually or at the time there are indications that goodwill may have been impaired. The assessment of the recoverable amount of the cashgenerating unit of goodwill involves management’s judgment and estimation with respect to the future cash flows and key assumptions which are complex and involve significant uncertainty. Accordingly, the assessment of impairment of goodwill has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain audit procedures including, among others, assessing the basis used by management for identifying the cash-generating units and whether book value of assets belonging to respective cash-generating units have been completely covered; assessing the appropriateness of the valuation method and key assumptions (in particular projected sales growth rate and weighted-average cost of capital) used by the management in measuring the recoverable amount; assessing the historical reasonableness of management’s estimates of financial forecasts, and performing a sensitivity analysis to assess the impact of variations in key assumptions. In addition to the above audit procedures, we have also involved a valuation specialist to evaluate the appropriateness of the weighted-average cost of capital used and its underlying assumptions; and inspecting the adequacy of the Company’s disclosures of related information on impairment evaluation of goodwill.

Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent-company-only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent-company-only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent-company-only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial parent-company-only statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

3-3

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent-company-only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, base on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent-company-only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the parent-company-only financial statements, including the disclosures, and whether the parent-company-only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient appropriate audit evidence regarding the financial information of the investee companies accounted for using the equity method to express an opinion on the parent-company-only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

3-4

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent-company-only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Huei-Chen Chang and Ching-Wen Kao.

KPMG

Taipei, Taiwan (Republic of China) March 16, 2023

Notes to Readers

The accompanying parent-company-only financial statements are intended only to present the parent-company-only financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent-company-only financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent-company-only financial statements, the Chinese version shall prevail.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Balance Sheets

December 31, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

December 31, 2022 Assets Amount % Current assets: 1100 Cash and cash equivalents (note 6(a)) $ 16,424,913 12 1110 Financial assets measured at fair value through profit or loss－ current (note 6(b)) 125,665 - 1170 Notes and accounts receivable, net (notes 6(e) & (u)) 3,569,975 3 1180 Notes and accounts receivable from related parties (notes 6(e) & (u) and 7) 12,743,460 9 1200 Other receivables, net (note 6(f)) 152,614 - 1210 Other receivables from related parties (notes 6(f) and 7) 1,049,499 1 130X Inventories (note 6(g)) 12,515,946 9 1470 Other current assets 306,649 - Total current assets 46,888,721 34 Non-current assets: 1517 Financial assets measured at fair value through other comprehensive income－non-current (note 6(c)) 6,465,744 5 1536 Financial assets measured at amortized cost－non-current (note 6(d)) 797,782 1 1550 Investments accounted for using the equity method (note 6(h)) 77,041,422 56 1600 Property, plant and equipment (note 6(i)) 1,754,509 1 1755 Right-of-use assets (note 6(j)) 120,214 - 1760 Investment property (note 6(k)) 824,318 1 1780 Intangible assets (note 6(l)) 179,677 - 1840 Deferred income tax assets (note 6(r)) 3,082,794 2 1900 Other non-current assets 46,457 - 1980 Other financial assets－non-current (note 8) 148,466 - Total non-current assets 90,461,383 66 Total assets $ 137,350,104 100

December 31, 2021

Amount % 20,564,678 13 443,248 - 6,335,764 4 37,518,525 23 263,174 - 664,582 - 16,213,599 10 245,025 - 82,248,595 50 6,690,542 4 - - 67,951,695 42 1,740,178 1 76,756 - 811,781 1 175,814 - 3,100,650 2 40,261 - 160,566 - 80,748,243 50 162,996,838 100

(Continued)

See accompanying notes to parent-company-only financial statements.

4-1

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Balance Sheets (Continued)

December 31, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity Current liabilities: 2120 Financial liabilities measured at fair value through profit or loss－ current (note 6(b)) 2130 Contract liabilities－current (note 6(u)) 2170 Notes and accounts payable 2180 Accounts payable to related parties (note 7) 2200 Other payables (note 6(v)) 2220 Other payables to related parties (note 7) 2250 Provisions－current (note 6(o) and 9) 2230 Current tax liabilities 2280 Lease liabilities－current (note 6(n)) 2365 Refund liabilities－current 2399 Other current liabilities Total current liabilities Non-current liabilities: 2530 Bonds payable (note 6(m)) 2570 Deferred income tax liabilities (note 6(r)) 2580 Lease liabilities－non-current (note 6(n)) 2600 Other non-current liabilities (note 6(q)) 2622 Long-term payable to related parties (note 7) Total non-current liabilities Total liabilities Equity (note 6(c)&(s)): 3110 Common stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity 3500 Treasury stock Total equity Total liabilities and equity	December 31, 2022		December 31, 2021 Amount % 145,969 - 9,512 - 47,977,844 30 628,865 - 26,560,173 17 518,175 - 834,725 1 3,502,017 2 43,432 - 3,636,287 2 434,939 - 84,291,938 52 10,000,000 6 4,234,394 3 33,810 - 745,386 - 14,594 - 15,028,184 9 99,320,122 61 30,478,538 19 27,514,269 17 16,886,389 10 (8,287,624) (5) (2,914,856) (2) 63,676,716 39 162,996,838 100

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Comprehensive Income

For the years ended December 31, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)

4000 Net revenue (notes 6(u) and 7) 5000 Cost of revenue (notes 6(g) & (o) and 7) Gross profit 5920 Realized (unrealized) profit or loss on sales to subsidiaries, associates and joint ventures Realized gross profit Operating expenses (notes 6(e), (i), (j), (k), (l), (n), (o), (p), (q) & (v), 7 and 12): 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses Total operating expenses 6500 Other operating income and expenses, net (notes 6(p) & (w) and 7) Operating income Non-operating income and loss: 7100 Interest income (notes 6(x) and 7) 7010 Other income (note 6(x)) 7020 Other gains and losses (notes 6(x) and 7) 7050 Finance costs (notes 6(n) & (x) and 7) 7060 Share of profits of subsidiaries, associates and joint ventures (note 6(h)) Total non-operating income and loss Income before taxes 7950 Income tax expenses (note 6(r)) Net Income Other comprehensive income (loss) (notes 6(h), (q), (r)&(s)): 8310 Items that will not be reclassified subsequently to profit or loss 8311 Remeasurements of defined benefit plans 8316 Unrealized gains and losses from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income (losses) of subsidiaries and associates 8349 Income tax related to items that will not be reclassified subsequently to profit or loss Total items that will not be reclassified subsequently to profit or loss 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign operations 8399 Income tax related to items that may be reclassified subsequently to profit or loss Total items that may be reclassified subsequently to profit or loss Other comprehensive income (loss), net of taxes Total comprehensive income for the year Earnings per share (in New Taiwan dollars) (note 6(t)): 9750 Basic earnings per share 9850 Diluted earnings per share	2022	% 100 (94) 6 - 6 (1) (1) (1) (3) - 3 - - - - 1 1 4 (1) 3 - (1) - - (1) 3 - 3 2 5 1.67 1.65	2021 Amount 246,828,456 (231,450,073) 15,378,383 (45,415) 15,332,968 (3,325,745) (1,459,183) (2,204,357) (6,989,285) 161,174 8,504,857 42,434 287,772 (33,924) (51,662) 4,953,384 5,198,004 13,702,861 (2,805,434) 10,897,427 (157,368) (83,057) (103,357) 31,474 (312,308) (2,766,226) - (2,766,226) (3,078,534) 7,818,893	% 100 (94) 6 - 6 (1) (1) (1) (3) - 3 - - - - 2 2 5 (1) 4 - - - - - (1) - (1) (1) 3 3.63 3.60
	Amount $ 169,284,764 (159,192,798) 10,091,966 40,330 10,132,296 (2,772,572) (1,283,169) (1,991,463) (6,047,204) 132,051 4,217,143 74,621 519,988 (59,447) (113,533) 1,721,078 2,142,707 6,359,850 (1,356,162) 5,003,688 89,278 (1,127,724) 386,990 (17,856) (669,312) 4,595,828 - 4,595,828 3,926,516 $ 8,930,204 $ $

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Changes in Equity

For the years ended December 31, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2021 Net income for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Appropriation approved by the stockholders: Legal reserve Special reserve Cash dividends Adjustments of capital surplus for the cash dividends distributed to subsidiaries Share of changes in equity of associates Changes in ownership interests in subsidiaries Difference between consideration and carrying amount of subsidiaries disposed Stock option compensation cost of subsidiaries Disposal of financial assets measured at fair value through other comprehensive income by the company Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries Balance at December 31, 2021 Net income for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Appropriation approved by the stockholders: Legal reserve Special reserve Cash dividends Adjustments of capital surplus for the cash dividends distributed to subsidiaries Share of changes in equity of associates Changes in ownership interests in subsidiaries Difference between consideration and carrying amount of subsidiaries aquired or disposed Organizational restructuring under common control Liquidation of subsidiaries Stock option compensation cost of subsidiaries Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries Balance at December 31, 2022	Common stock $ 30,478,538 - - - - - - - - - - - - - 30,478,538 - - - - - - - - - - - - - - $ 30,478,538	Capital surplus			Retain	ed earnings					Othe	r	equity		Treasury stock (2,914,856) - - - - - - - - - - - - - (2,914,856) - - - - - - - - - - - - - - (2,914,856)	Total equity
				Legal reserve 853,852 - - - 602,575 - - - - - - - - - 1,456,427 - - - 1,058,914 - - - - - - - - - - 2,515,341	Special reserve 3,976,265 - - - - 857,485 - - - - - - - - 4,833,750 - - - - 2,564,442 - - - - - - - - - 7,398,192	Unappropriated retained earnings 6,038,916 10,897,427 - 10,897,427 (602,575) (857,485) (4,571,781) - - - - - 40,230 (348,520) 10,596,212 5,003,688 - 5,003,688 (1,058,914) (2,564,442) (6,949,107) - - - - - - - (43,825) 4,983,612	Total		Foreign currency translation differences		Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income		Remeasurements of defined benefit plans (242,887) - 11,917 11,917 - - - - - 2,760 - - - - (228,210) - 535,617 535,617 - - - - - 7,486 - 5,483 - - - 320,376	Total (5,517,452) - (3,078,534) (3,078,534) - - - - - 72 - - (40,230) 348,520 (8,287,624) - 3,926,516 3,926,516 - - - - - 12,394 - (6,219) 1,855 - 43,825 (4,309,253)
		27,378,068					10,869,033		(6,043,227) - (2,766,226) (2,766,226) - - - - - 3,856 - - - - (8,805,597) - 4,595,828 4,595,828 - - - - - (287) - (11,702) 1,855 - - (4,219,903)		768,662					60,293,331
		- -					10,897,427 -									10,897,427 (3,078,534)
		-					10,897,427									7,818,893
																- - (4,571,781) 70,119 (24,908) 60,177 29,880 1,005 - -
																63,676,716
																5,003,688 3,926,516
																8,930,204
																- - (6,949,107) 107,298 (2,746) 166,459 12,345 2,083 1,855 2,350 -
																65,947,457

See accompanying notes to parent-company-only financial statements.

7

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Cash Flows

For the years ended December 31, 2022 and 2021 (Expressed in Thousands of New Taiwan Dollars)

2022 Cash flows from operating activities: Income before income tax $ 6,359,850 Adjustments for: Adjustments to reconcile profit or loss: Depreciation 144,017 Amortization 23,271 Net (gain) loss on financial assets measured at fair value through profit or loss (907) Effects of exchange rate changes in financial assets measured at amortized cost (57,817) Interest expense 113,533 Interest income (74,621) Dividend income (519,988) Share of profits of subsidiaries, associates and joint ventures (1,721,078) Gain on disposal of equipment and intangible assets (670) Loss on liquidation of subsidiaries 2,301 Property, Plant and equipment reclassified to expenses - Unrealized (realized) profit on sales to subsidiaries, associates and joint ventures (40,330) Other profits from investment - Total adjustments for profit or loss (2,132,289) Changes in operating assets and liabilities: Changes in operating assets: Derivative financial instruments measured at fair value through profit or loss 887,025 Contract assets - Notes and accounts receivable 2,765,789 Notes and accounts receivable from related parties 24,775,065 Inventories 3,687,416 Other receivables and other current assets 101,854 Changes in operating assets 32,217,149 Changes in operating liabilities: Notes and accounts payable (26,878,442) Payables to related parties 2,732,230 Refund liabilities (854,679) Other payables and other current liabilities (2,041,977) Provisions 176,541 Contract liabilities (703) Other non-current liabilities and long-term payables to related parties (33,488) Changes in operating liabilities (26,900,518) Cash provided by operations 9,544,192 Interest received 66,508 Income taxes paid (2,716,260) Net cash provided by operating activities 6,894,440

2021 13,702,861 140,120 24,593 406 - 51,662 (42,434) (287,772) (4,953,384) (657) - 917 45,415 (196) (5,021,330) (1,084,932) 250 (425,105) (12,922,567) (2,563,051) (70,225) (17,065,630) 6,028,200 159,923 (14,624) 8,119,742 92,572 (69,619) (24,630) 14,291,564 5,907,465 42,317 (1,065,249) 4,884,533 (Continued)

See accompanying notes to parent-company-only financial statements.

7-1

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Cash Flows (Continued)

For the years ended December 31, 2022 and 2021 (Expressed in Thousands of New Taiwan Dollars)

2022 Cash flows from investing activities: Purchase of financial assets measured at fair value through other comprehensive income (902,926) Proceeds from disposal of financial assets measured at fair value through other comprehensive income - Proceeds from capital return and liquidation of financial assets measured at fair value through other comprehensive income - Acquisition of financial assets measured at amortized cost (739,775) Additions to investments accounted for using the equity method (3,001,210) Proceeds from disposal of investments accounted for using the equity method 509,697 Proceeds from capital return of investments accounted for using the equity method 11,044 Additions to property, plant and equipment and investment property (76,739) Proceeds from disposal of equipment and intangible assets 670 Increase in receivables from related parties (423,010) Additions to intangible assets (25,960) Increase in assets recognized from costs to fulfill contracts with customers - Increase (decrease) in other financial assets and other non-current assets 4,732 Dividends received 980,389 Net cash flows used in investing activities (3,663,088) Cash flows from financing activities: Increase in short-term borrowings 5,077,804 Decrease in short-term borrowings (5,077,804) Proceeds from issuing bonds - Repayment of long-term debt - Payment of lease liabilities (83,477) Decrease in loans from related parties (225,000) Cash dividends (6,949,107) Interest paid (113,533) Net cash flows provided by (used in) financing activities (7,371,117) Net increase in cash and cash equivalents (4,139,765) Cash and cash equivalents at beginning of period 20,564,678 Cash and cash equivalents at end of period $ 16,424,913

2021 (2,175,540) 107,703 2,845 - (113,655) 66,165 - (40,378) 895 (412,338) (7,810) (2,438) (59,894) 560,248 (2,074,197) 5,233,942 (5,233,942) 10,000,000 (3,300,000) (77,024) (280,000) (4,571,781) (16,677) 1,754,518 4,564,854 15,999,824 20,564,678

See accompanying notes to parent-company-only financial statements.

8

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements For the years ended December 31, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars, Except for Per Share Information And Otherwise Specified)

1. Organization and business

Acer Incorporated (the “Company”) was incorporated on August 1, 1976, as a company limited by shares under the laws of the Republic of China (“ R.O.C.” ) and registered under the Ministry of Economic Affairs, R.O.C.

The Company is primarily engaged in marketing and sale of brand-name IT products. The Company also builds innovative ecosystems in consumer and commercial markets to provide more products and integrated applications along with software, hardware and related services. In addition, the Company aims at building multiple business engines to foster innovation of products and application services for market expansion.

2. Authorization of the parent-company-only financial statements

These parent-company-only financial statements were authorized for issuance by the Board of Directors on March 16, 2023.

3. Application of new and revised accounting standards and interpretations:

• (a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2022:

• －

• ●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”

• －

• ●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”

• ●Annual Improvements to IFRS Standards 2018–2020

• ●Amendments to IFRS 3 “Reference to the Conceptual Framework”

• (b) The impact of IFRS issued by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2023, would not have a significant impact on its financial statements:

• ●Amendments to IAS 1 “Disclosure of Accounting Policies”

• ●Amendments to IAS 8 “Definition of Accounting Estimates”

• ●Amendments to IAS 12 “ Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(Continued)

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ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Non- current Liabilities with Covenants”

Content of amendment Effective date per IASB Under existing IAS 1 requirements, companies classify a liability as current when they do not have an unconditional right to defer settlement for at least 12 months after the reporting date. The amendments has removed the requirement for a right to be unconditional and instead now requires that a right to defer settlement must exist at the reporting date and have substance. The amendments clarify how a company classifies a liability that can be settled in its own shares – e.g. convertible debt. January 1, 2024 After reconsidering certain aspects of the 2020 amendments, new IAS 1 amendments clarify that only covenants with which a company must comply on or before the reporting date affect the classification of a liability as current or non-current. Covenants with which the company must comply after the reporting date (i.e. future covenants) do not affect a liability’ s classification at that date. However, when non-current liabilities are subject to future covenants, companies will now need to disclose information to help users understand the risk that those liabilities could become repayable within 12 months after the reporting date. January 1, 2024

The Company is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its parent-company-only financial position and financial performance. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its parent-company-only financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

(Continued)

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ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• ●IFRS 16 “Requirements for Sale and Leaseback Transactions”

4. Summary of significant accounting policies

The significant accounting policies presented in the parent-company-only financial statements are summarized as follows. The following accounting policies have been applied consistently to all periods presented in these financial statements.

(a) Statement of compliance

The accompanying parent-company-only financial statements have been prepared in accordance with the “ Regulations Governing the Preparation of Financial Reports by Securities Issuers” ( the “Regulations”).

(b) Basis of preparation

• (i) Basis of measurement

The accompanying parent-company-only financial statements have been prepared on a historical cost basis except for the following items:

• 1) Financial instruments measured at fair value through profit or loss (including derivative financial instruments);

• 2) Financial assets measured at fair value through other comprehensive income; and

• 3) Net defined benefit liability measured at present value of defined benefit obligation less the fair value of plan assets.

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the Company operates. The Company’s parent-company-only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency. Except when otherwise indicated, all financial information presented in New Taiwan dollars has been rounded to the nearest thousand.

(c) Foreign currency

• (i) Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. At the end of each reporting period (“ the reporting date” ), monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the exchange rate at the date of the transaction.

(Continued)

11

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Exchange differences are generally recognized in profit or loss, except for an investment in equity securities designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisition, are translated into the presentation currency of the Company’s parentcompany-only financial statements at the exchange rates at the reporting date. The income and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated into the presentation currency of the Company’s parent-company-only financial statements at the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, joint control, or significant influence is lost, the accumulated exchange differences related to that foreign operation is reclassified to profit or loss. In the case of a partial disposal that does not result in the Company losing control over a subsidiary, the proportionate share of the accumulated exchange differences is reclassified to non-controlling interests. For a partial disposal of the Company’s ownership interest in an associate or joint venture, the proportionate share of the accumulated exchange differences in equity is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, the monetary item is, in substance, a part of net investment in that foreign operation, and the related foreign exchange gains and losses thereon are recognized as other comprehensive income.

(d) Classification of current and non-current assets and liabilities

An asset is classified as current when one of the following criteria is met; all other assets are classified as non-current assets:

• (i) It is expected to be realized, or intended to be sold or consumed in the normal operating cycle; (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current when one of the following criteria is met; all other liabilities are classified as non-current liabilities:

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

(Continued)

12

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(e) Cash and cash equivalents

Cash consists of cash on hand, checking deposits, and demand deposits. Cash equivalents consist of short-term and highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits that meet the aforesaid criteria and are not held for investing purposes are also classified as cash equivalents.

(f) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issuance. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

On initial recognition, a financial asset is classified as measured at: amortized cost, fair value through other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL). All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold financial assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, these assets are measured at amortized cost, using the effective interest method, less impairment loss. Interest income, foreign exchange gains and losses, and recognition (reversal) of impairment loss are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(Continued)

13

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• 2) Financial assets measured at fair value through other comprehensive income ("FVOCI")

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’ s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment loss are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, other comprehensive income accumulated in equity are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income. On derecognition, other comprehensive income accumulated in equity is reclassified to retained earnings and is never reclassified to profit or loss.

Dividend income derived from equity investments is recognized on the date that the Company’s right to receive the dividends is established (usually the ex-dividend date).

• 3) Financial assets measured at fair value through profit or loss ("FVTPL")

All financial assets not classified as measured at amortized cost or at FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any dividend and interest income, are recognized in profit or loss.

• 4) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (“ECL”) on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable, other receivables and other financial assets) and contract assets.

(Continued)

14

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The Company measures loss allowances for accounts receivable, contract assets and other financial assets at an amount equal to lifetime ECL, except for the following financial assets which are measured using 12-month ECL:

• debt securities that are determined to have low credit risk at the reporting date; and

• bank balances for which credit risk (i.e., the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. The information includes both quantitative and qualitative information and analysis based on the Company’s historical experience and credit assessment, as well as forward-looking information.

ECLs are probability-weighted estimate of credit losses over the expected life of financial assets. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

(Continued)

15

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The Company enters into transactions whereby it transfers assets recognized in its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets; in these cases, the transferred assets are not derecognized.

• (ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual agreements and the definitions of a financial liability and an equity instrument.

2) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recognized at the amount of consideration received, less the direct issuing cost.

3) Treasury stock

When shares recognized as equity are repurchased, the amount of the consideration paid, including directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury stock. When treasury stock is sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is held for trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligation has been fulfilled or cancelled, or has expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of a financial liability derecognized and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(Continued)

16

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• 6) Offsetting of financial assets and liabilities

Financial assets and liabilities are presented on a net basis only when the Company has the legally enforceable right to offset and intends to settle such financial assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

• (iii) Derivative financial instruments

The Company uses derivative financial instruments to hedge its foreign currency exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized in profit or loss.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted-average method, and includes expenditure incurred in bringing them to their existing location and condition. Net realizable value represents the estimated selling price in the ordinary course of business, less all estimated costs of completion and necessary selling expenses.

• (h) Investments accounted for using the equity method

Investments accounted for using the equity method include investments in associates and interests in joint venture.

An associate is an entity in which the Company has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses. When necessary, the entire carrying amount of the investment (including goodwill) will be tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company recognizes its share of the profit or loss and other comprehensive income of those associates from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in percentage of ownership.

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated investors’ interests in the associate.

Adjustments are made to associates’ financial statements to conform to the accounting polices applied by the Company.

(Continued)

17

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

When the Company’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

The Company discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing of a part interest in the associate, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Company accounts for all the amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss ( or retained earnings) on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss (or retained earnings) when the equity method is discontinued. If the Company’ s ownership interest in an associate is reduced while it continues to apply the equity method, the Company reclassifies the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to the reduction in ownership interest to profit or loss (or retained earnings).

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. If the adjustments are charged to capital surplus and the capital surplus resulting from investments accounted for using the equity method is not sufficient, the remaining difference is debited to retained earnings. If the Company’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

A joint venture is a joint arrangement whereby the Company has joint control of the arrangement (i.e. joint ventures) in which the Company has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Company recognizes its interest in a joint venture as an investment and accounts for that investment using the equity method in accordance with IAS 28 “ Investments in Associates and Joint Ventures” , unless the Company qualifies for exemption from that Standard.

When assessing the classification of a joint arrangement, the Company considers the structure and legal form of the arrangement, the terms in the contractual arrangement, and other facts and circumstances. When the facts and circumstances change, the Company reevaluates whether the classification of the joint arrangement has changed.

(Continued)

18

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(i) Investments in subsidiaries

When preparing the parent-company-only financial statements, investment in subsidiaries which are controlled by the Company is accounted for using the equity method. Carrying amount of investments in subsidiaries includes goodwill arising from initial recognition less any accumulated impairment losses, which is recognized as a reduction of carry amount. Under the equity method, profit or loss and other comprehensive income recognized in parent-company-only financial statement is in line with total comprehensive income attributable to owners of the Parent in the consolidated financial statements. In addition, changes in equity recognized in parent-company-only financial statement is in line with the changes in equity attributable to owners of parent in the consolidated financial statements. Changes in a parent’s ownership interest in a subsidiary that do not result in the loss of control are accounted for within equity.

The Company uses acquisition method for acquisitions of new subsidiaries. The goodwill arising from an acquisition is measured as the excess of the acquisition-date fair value of consideration transferred, including the amount of non-controlling interest in the acquiree, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed (generally at fair value). If the amount calculated above is a deficit balance, the Company recognizes that amount as a gain on a bargain purchase in profit or loss immediately after reassessing whether it has correctly identified all of the assets acquired and all of the liabilities assumed. For each business combination, non-controlling interest in the acquiree is measured either at fair value or at the non-controlling interest’s proportionate share of the fair value of acquiree’s identifiable net assets.

In an acquisition of new subsidiary achieved in stages, the Company shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in profit or loss. The amount previously recognized in other comprehensive income in relation to the changes in the value of the Company’ s equity interest should be reclassified to profit or loss on the same basis as would be required if the Company had disposed directly of the previously held equity interest.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, provisional amounts for the items for which the accounting is incomplete are reported in the financial statements. During the measurement period, the provisional amounts recognized at the acquisition date are retrospectively adjusted, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period shall not exceed one year from the acquisition date.

Acquisition-related costs are expensed as incurred except for the costs related to issuance of debt or equity instruments.

• (j) Property, plant and equipment

• (i) Recognition and measurement

Property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

(Continued)

19

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

• (ii) Reclassification to investment property

A property is reclassified to investment property at its carrying amount when the purpose of the property changes from owner-occupied to investment.

• (iii) Subsequent costs

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(iv) Depreciation

Depreciation is calculated on the cost of assets less their residual values and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated. The estimated useful lives of property, plant and equipment are as － follows: buildings main structure - 30 to 50 years; air-conditioning system - 10 years; other equipment pertaining to buildings - 20 years; computer and communication equipment - 3 to 5 years; other equipment - 3 to 10 years.

Depreciation methods, useful lives, and residual values are reviewed at each financial yearend, with the effect of any changes in estimate accounted for on a prospective basis.

(k) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. The methods for depreciating and determining the useful life and residual value of investment property are the same as those adopted for property, plant and equipment.

Rental income from investment property is recognized as other operating income and expenses on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

An investment property is reclassified to property, plant and equipment at its carrying amount when the purpose of the investment property has been changed from investment to owner-occupied.

(Continued)

20

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(l) Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

• (i) As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically evaluated and reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• － fixed payments, including in-substance fixed payments;

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured when:

• － there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change of the Company’s assessment on whether it will exercise an option to purchase the underlying asset, or;

• － there is a change in the lease term resulting from a change of the Company’s assessment on whether it will exercise an extension or termination option; or

• － there is any lease modifications in lease subject, scope of the lease or other terms.

(Continued)

21

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

At inception or on reassessment of whether a contract contains a lease, the Company allocates the consideration in the contract to each lease component on the basis of their relative standalone prices. However, for the leases of land and buildings, the Company has elected not to separate non-lease components and account for each lease component and any associated nonlease components as a single lease component.

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize the difference in profit or loss for any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment properties and lease liabilities as a separate line item respectively in the parent-company-only balance sheets.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) As a lessor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

For operating lease, the Company recognizes rental income on a straight-line basis over the lease term.

(Continued)

22

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(m) Intangible assets

(i) Goodwill

Goodwill arising from acquisitions of subsidiaries is accounted for as intangible assets. Refer to note 4(i) for the description of the measurement of goodwill at initial recognition. Goodwill arising from acquisitions of subsidiaries and associates are included in the carrying amount of investments in associates. Goodwill is not amortized but is measured at cost less accumulated impairment losses.

(ii) Trademarks

Trademarks are measured at cost. Subsequent to the initial recognition, trademarks with definite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis. Trademarks with indefinite useful lives are carried at cost less any accumulated impairment losses and are tested for impairment annually. The useful life of an intangible asset not subject to amortization is reviewed annually at each financial year-end to determine whether events and circumstances continue to support an indefinite useful life assessment for the asset. Any change in the useful life assessment from indefinite to definite is accounted for as a change in accounting estimate.

(iii) Other intangible assets

Other separately acquired intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss on a straightline basis over the following estimated useful lives: patents - 4 to 15 years; acquired software - 1 to 3 years.

The residual value, amortization period, and amortization method are reviewed at least at each financial year-end, with the effect of any changes in estimate accounted for on a prospective basis.

(n) Impairment of non-financial assets

The Company assesses at the end of each reporting date whether there is any indication that the carrying amounts of non-financial assets (other than inventories, contract assets, and deferred tax assets) may be impaired. If any such indication exists, then the asset’ s recoverable amount is estimated. Goodwill is tested annually or when there are indications of impairment.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets. Goodwill arising from a business combination is allocated to cash-generating units (“CGUs”) or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an individual asset or CGU is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

(Continued)

23

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other non-financial assets, an impairment loss is reversed only to the extent that the asset’s carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the assets in prior years.

(o) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

(i) Warranties

A provision for warranties is recognized when the underlying products or services are sold. This provision reflects the historical warranty claim rate and the weighting of all possible outcomes against their associated probabilities.

(ii) Others

Provisions for litigation claims and environmental restoration are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

(p) Revenue recognition

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company’ s main types of revenue are explained below.

1) Sale of goods

The Company recognizes revenue when control of the products has been transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’ s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

(Continued)

24

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company recognizes revenue based on the price specified in the contract, net of the estimated volume discounts and rebates. Accumulated experience is used to estimate the discounts and rebates using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognized for expected sales discounts and rebate payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term ranged from 30 to 90 days, which is consistent with the market practice.

The Company’ s obligation to provide a refund for faulty goods under the standard warranty terms is recognized as a provision for warranty. Please refer to note 6(o) for more explanation.

A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

2) Revenue from service rendered

The Company provides system implementation or integration services to enterprise customers. Revenue from providing services is recognized in the accounting periods in which the services are rendered. For performance obligations that are satisfied over time, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. The proportion of services provided is determined based on the portion of the work performed, the time passed by, or the milestone reached.

Estimates of revenues, costs, or extent of progress toward completion, are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by the management.

In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the accumulated revenue recognized by the Company exceed the payments, a contract asset is recognized. If the payments exceed the accumulated revenue recognized, a contract liability is recognized.

3) Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and the payment made by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(Continued)

25

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(ii) Contract costs

• 1) Incremental costs of obtaining a contract

The Company recognizes the incremental costs of obtaining a contract with a customer as an asset if the Company expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Costs to obtain a contract that would have been incurred, regardless of whether the contract was obtained, shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less.

• 2) Assets recognized from costs to fulfill contracts with customers

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (e.g., IAS 2 Inventories , IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets ), the Company recognizes an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

• the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify;

• the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and

• the costs are expected to be recovered.

General and administrative costs, costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in the price of the contract, costs that relate to satisfied performance obligations (or partially satisfied performance obligations), and costs for which the Company cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations) are recognized as expenses when incurred.

(q) Government grant

A government grant is recognized in profit or loss only when there is reasonable assurance that the Company will comply with the conditions associated with the grant and that the grant will be received.

A government grant is recognized in profit or loss in the period in which it becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company without future related costs.

Government grant is recorded in other operating income and expenses, net.

(Continued)

26

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(r) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are expensed during the year in which employees render services.

• (ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate for calculating the present value of the defined benefit obligation refers to the interest rate of high-quality government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation. The defined benefit obligation is calculated annually by qualified actuaries using the projected unit credit method.

When the benefits of a plan are improved, the expenses related to the increased obligations resulting from the services rendered by employees in the past years are recognized in profit or loss immediately.

The remeasurements of the net defined benefit liability (asset) comprise (i) actuarial gains and losses; (ii) return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and (iii) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). The remeasurements of the net defined benefit liability (asset) are recognized in other comprehensive income and reflected in other equity.

The Company recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises any resulting change in the fair value of plan assets and any change in the present value of the defined benefit obligation.

(iii) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the period in which employees render services. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to make such payments as a result of past service provided by the employees, and the obligation can be estimated reliably.

(s) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, and the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

(Continued)

27

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

For share-based payment awards with non-vesting conditions, the grant-date fair value of the sharebased payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

The grant date of options for employees to subscribe new shares for a cash injection is the date when the Board of Directors approves the exercise price and the shares to which employees can subscribe.

(t)

• Income taxes

Income taxes comprise current taxes and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they relate to business combinations or items recognized directly in equity or other comprehensive income.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred income taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for:

• (i) Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;

• (ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• (iii) Taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for unused tax losses, tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

(Continued)

28

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(u) Earnings per share (“EPS”)

The basic and diluted EPS attributable to stockholders of the Company are disclosed in the financial statements. Basic EPS is calculated by dividing net income attributable to stockholders of the Company by the weighted-average number of common shares outstanding during the year. In calculating diluted EPS, the net income attributable to stockholders of the Company and weightedaverage number of common shares outstanding during the year are adjusted for the effects of dilutive potential common shares. The Company’s dilutive potential common shares include profit sharing for employees to be settled in the form of common stock.

• (v) Operating segments

The Company discloses the operating segment information in the consolidated financial statements. Therefore, the Company does not disclose the operating segment information in the parent-companyonly financial statements.

5. Critical accounting judgments and key sources of estimation and assumption uncertainty

The preparation of the parent-company-only financial statements in conformity with the Regulations Governing the Preparation of Financial Reports requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in the future periods affected.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included as follows:

(a) Revenue recognition (accrual of sales return and allowance)

The Company records a refund liability for estimated future returns and other allowances in the same period the related revenue is recognized. Refund liability for estimated sales returns and other allowances is generally made and adjusted based on historical experience, channel inventory, market and economic conditions, and any other factors that would significantly affect the allowance. The adequacy of estimations is reviewed periodically. The fierce market competition and rapid evolution of technology could result in significant adjustments to the accruals made.

(Continued)

29

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(b) Valuation of inventory

Inventories are measured at the lower of cost or net realizable value. The Company uses judgment and estimates to determine the net realizable value of inventory at each reporting date.

The Company estimates the net realizable value of inventory, taking obsolescence and unmarketable items into account at the reporting date, and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions of future demand within a time horizon, which could result in significant adjustments. Refer to note 6(g) for further description of inventory write-downs.

(c) Impairment of goodwill from investments in subsidiaries

The assessment of impairment of goodwill requires the Company to make subjective judgments to identify cash-generating units, allocate the goodwill to relevant cash-generating units, and estimate the recoverable amount of relevant cash-generating units. Any changes in these estimates based on changed economic conditions or business strategies could result in significant adjustments in future years. Refer to note 6(h) for further description of the impairment of goodwill.

6. Significant account disclosures

(a) Cash and cash equivalents

December 31, 2022 Cash on hand $ 614 Bank deposits 5,185,171 Time deposits 11,239,128 $ 16,424,913 Financial instruments measured at fair value through profit or loss－current December 31, 2022 Financial assets mandatorily measured at fair value through profit or loss: Derivative instruments not used for hedging Foreign currency forward contracts $ 123,004 Non-derivative financial assets Stocks listed on foreign markets 2,661 $ 125,665 Financial liabilities held for trading－current: Derivatives－Foreign currency forward contracts $ (714,504)

December 31, 2021 514 18,814,366 1,749,798 20,564,678 December 31, 2021 441,494 1,754 443,248 (145,969)

• －

• (b) Financial instruments measured at fair value through profit or loss current

Please refer to note 6(x) for the amounts recognized in profit or loss arising from remeasurement at fair value.

(Continued)

30

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company entered into derivative contracts to manage foreign currency exchange risk arising from operating activities. At each reporting date, the outstanding foreign currency forward contracts that did not conform to the criteria for hedge accounting consisted of the following (the contract amount was presented in USD):

• (i) Foreign currency forward contracts

	December 31, 2022
Contract amount (in thousands) USD 662,000 USD 298,162 USD 5,757 USD 55,082 USD 43,386 USD 135,967	Currency Maturity period USD / NTD 2023/01 EUR / USD 2023/01~2023/06 NZD / USD 2023/01~2023/03 AUD / USD 2023/01~2023/04 USD / JPY 2023/01~2023/10 USD / INR 2023/01~2023/07 December 31, 2021
Contract amount (in thousands) USD 595,000 USD 669,048 USD 10,494 USD 115,082 USD 31,917 USD 214,969	Currency Maturity period USD / NTD 2022/01 EUR / USD 2022/01~2022/05 NZD / USD 2022/01~2022/05 AUD / USD 2022/01~2022/06 USD / JPY 2022/01~2022/08 USD / INR 2022/01~2022/06

－ (c) Financial assets measured at fair value through other comprehensive income non-current:

Equity investments measured at fair value through other comprehensive income: Domestic listed stock Domestic unlisted stock	December 31, 2022 $ 6,143,288 322,456 $ 6,465,744	December 31, 2021
		6,533,121 157,421
		6,690,542

The Company designated the investments shown above financial assets measured as at fair value through other comprehensive income because these equity instruments are held for long-term strategic purposes and not for trading. Certain financial assets measured at FVOCI were disposed of in 2021, the related gain accumulated in other comprehensive income of $40,230 has been reclassified from other equity to retained earnings, accordingly.

(Continued)

31

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (d) Financial assets measured at amortized cost

Fixed Rate Corporate Bonds Fixed Rate Callable Notes	December 31, 2022 $ 183,622 614,160 $ 797,782	December 31, 2021
		- -
		-

The Company evaluated these financial assets being hold-to-maturity in order to collect the contractual cash flows, which are solely payments for principal and interest on principal amount outstanding. Therefore, such financial assets were classified as financial assets measured at amortized cost.

• (e) Notes and accounts receivable, net (measured at amortized cost)

Notes receivable Accounts receivable Less: loss allowance Notes and accounts receivable from related parties (note 7(b))	December 31, 2022 $ 5,250 3,566,480 (1,755) 3,569,975 12,743,460 $ 16,313,435	December 31, 2021 14,619 6,322,943 (1,798) 6,335,764 37,518,525 43,854,289

The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. Forward looking information is taken into consideration as well. Analysis of expected credit losses on notes and accounts receivable was as follows:

Current Past due 1-30 days Past due 31-60 days Past due 61-90 days Past due 91-180 days Past due 181 days or over	December 31, 2022	December 31, 2022	Loss allowance (1,460) - - (1) (9) (285) (1,755)
	Gross carrying amount $ 2,789,857 752,600 21,095 3,046 4,784 348 $ 3,571,730	Weighted- average loss rate 0.05% 0.00% 0.00% 0.03% 0.19% 81.90%

(Continued)

32

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Current Past due 1-30 days Past due 31-60 days Past due 61-90 days Past due 91-180 days Past due 181 days or over	December 31, 2021	December 31, 2021	Loss allowance (1,798) - - - - -
	Gross carrying amount $ 5,579,837 704,925 34,807 14,418 3,556 19 $ 6,337,562	Weighted- average loss rate 0.03% 0.00% 0.00% 0.00% 0.00% 0.00%
			(1,798)

As of December 31, 2022 and 2021, no expected credit losses was provided for abovementioned notes and accounts receivable from related parties after management's assessment. The analysis was as follows:

Current Past due 1-30 days Past due 31-60 days Past due 61-90 days Past due 91-180 days Past due 181 days or over	December 31, 2022 $ 8,606,720 2,061,103 1,201,646 466,288 276,177 131,526 $ 12,743,460	December 31, 2021
		34,606,560 2,053,424 389,904 222,040 163,924 82,673
		37,518,525

Movements of the allowance for notes and accounts receivable were as follows:

Balance at January 1 Impairment loss recognized (reversed) Write-off Balanceat December 31	2022 $ 1,798 177 (220) $ 1,755	2021 2,221 (423) - 1,798

(Continued)

33

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(f) Other receivables, net

Other receivables from related parties (note 7(b)) Reimbursement of advertising expense Purchase discount Interest receivable Others Less: loss allowance	December 31, 2022 $ 1,049,499 62,880 57,772 8,222 23,740 1,202,113 - $ 1,202,113	December 31, 2021 664,582 157,508 85,860 299 19,657 927,906 (150) 927,756

As of December 31, 2022 and 2021, except for the loss allowance fully provided for certain other receivables, no other loss allowance was provided for other receivables after management's assessment.

(g) Inventories

Raw materials Finished goods and merchandise Spare parts Inventories in transit	December 31, 2022 $ 11,456,106 709,763 59,573 290,504 $ 12,515,946	December 31, 2021 14,497,453 815,669 57,484 842,993 16,213,599

For the years ended December 31, 2022 and 2021, the amounts of inventories recognized as cost of revenues were $147,697,860 and $214,865,824, respectively, of which $894,308 and $959,823, respectively, were the write-downs of inventories. The write-downs arose from the write-down of inventories to net realizable value.

(h) Investments accounted for using the equity method

A summary of the Company’s investments accounted for using the equity method is as follows:

Subsidiaries Associates Joint ventures	December 31, 2022 $ 76,927,756 59,933 53,733 $ 77,041,422	December 31, 2021
		67,870,064 10,030 71,601
		67,951,695

(Continued)

34

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (i) For the information of subsidiaries, please refer to the consolidated financial statements for the year ended December 31, 2022.

• (ii) The Company has performed an impairment test for Goodwill from investment in subsidiaries, and there was no impairment as a result of the test. Please refer to the consolidated financial statements for the year ended December 31, 2022 for the description of the impairment of goodwill.

(iii) Associates and joint venture

Name of Associates and Joint Venture Associates Joint Venture: Smart Frequency Technology Inc. (“SFT”, note (i))	December 31, 2022 Percentage of ownership Carrying amount - $ 59,933 55.00 53,733 $ 113,666	December 31, 2021	December 31, 2021
	Percentage of ownership - 55.00	Percentage of ownership - 55.00	Carrying amount
			10,030 71,601
			81,631

Note (i): According to the joint venture agreement with a third party, the Company and the other party have joint control over SFT. Accordingly, this investment is accounted for using the equity method.

The Company’s share of net income (loss) of the associates: Net income (loss) Other comprehensive income Total comprehensive income (loss) The Company’s share of net loss of the joint venture: Net loss Other comprehensive income Total comprehensive loss	2022 $ (97) - $ (97) 2022 $ (17,868) - $ (17,868)	2021 844 -
		844
		2021 (17,717) -
		(17,717)

(Continued)

35

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(i) Property, plant and equipment

The movements of cost, and accumulated depreciation and impairment loss of the property, plant and equipment were as follows:

Cost or deemed cost: Balance at January 1, 2022 Additions Disposals Reclassifications Balance at December 31, 2022 Balance at January 1, 2021 Additions Disposals Reclassifications Balance at December 31, 2021 Accumulated depreciation and impairment loss: Balance at January 1, 2022 Depreciation Disposals Reclassifications Balance at December 31, 2022 Balance at January 1, 2021 Depreciation Disposals Reclassifications Balance at December 31, 2021 Carrying amounts: Balance at December 31, 2022 Balance at December 31, 2021	Land $ 1,427,739 - - - $ 1,427,739 $ 1,550,181 - - (122,442) $ 1,427,739 $ 278,877 - - - $ 278,877 $ 320,087 - - (41,210) $ 278,877 $ 1,148,862 $ 1,148,862	Buildings 2,541,949 29,368 (6,470) (9,310) 2,555,537 2,774,665 23,956 - (256,672) 2,541,949 2,007,506 22,892 (6,470) (1,623) 2,022,305 2,223,737 24,503 - (240,734) 2,007,506 533,232 534,443	Computer and communication equipment 534,025 17,589 (43,017) 32,842 541,439 583,180 12,480 (63,175) 1,540 534,025 492,511 18,781 (43,017) 22,605 490,880 541,365 18,763 (63,034) (4,583) 492,511 50,559 41,514	Other equipment 275,998 12,533 (20,309) - 268,222 274,992 3,498 (2,678) 186 275,998 260,639 6,036 (20,309) - 246,366 253,309 9,725 (2,581) 186 260,639 21,856 15,359	Total 4,779,711 59,490 (69,796) 23,532
					4,792,937
					5,183,018 39,934 (65,853) (377,388)
					4,779,711
					3,039,533 47,709 (69,796) 20,982
					3,038,428
					3,338,498 52,991 (65,615) (286,341)
					3,039,533
					1,754,509
					1,740,178

(Continued)

36

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(j) Right-of-use assets

Buildings Cost: Balance at January 1, 2022 $ 174,928 Additions 127,367 Disposals (94,831) Balance at December 31, 2022 $ 207,464 Balance at January 1, 2021 $ 205,855 Additions 79,645 Disposals (110,572) Balance at December 31, 2021 $ 174,928 Accumulated depreciation: Balance at January 1, 2022 $ 101,670 Depreciation 81,870 Disposals (94,831) Balance at December 31, 2022 $ 88,709 Balance at January 1, 2021 $ 137,425 Depreciation 74,753 Disposals (110,508) Balance at December 31, 2021 $ 101,670 Carrying amount: Balance at December 31, 2022 $ 118,755 Balance at December 31, 2021 $ 73,258	Other equipment 6,117 - - 6,117 6,117 - - 6,117 2,619 2,039 - 4,658 580 2,039 - 2,619 1,459 3,498	Total 181,045 127,367 (94,831) 213,581 211,972 79,645 (110,572) 181,045 104,289 83,909 (94,831) 93,367 138,005 76,792 (110,508) 104,289 120,214 76,756

(Continued)

37

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(k) Investment property Cost or deemed cost: Balance at January 1, 2022 Additions Reclassifications Balance at December 31, 2022 Balance at January 1, 2021 Additions Reclassifications Balance at December 31, 2021 Accumulated depreciation and impairment loss: Balance at January 1, 2022 Depreciation Reclassifications Balance at December 31, 2022 Balance at January 1, 2021 Depreciation Reclassifications Balance at December 31, 2021 Carrying amounts: Balance at December 31, 2022 Balance at December 31, 2021 Fair value: Balance at December 31, 2022 Balance at December 31, 2021	Land $ 840,869 - - $ 840,869 $ 718,427 - 122,442 $ 840,869 $ 274,710 - - $ 274,710 $ 233,500 - 41,210 $ 274,710 $ 566,159 $ 566,159	Buildings Total 2,162,336 3,003,205 17,249 17,249 9,310 9,310 2,188,895 3,029,764 1,905,121 2,623,548 444 444 256,771 379,213 2,162,336 3,003,205 1,916,714 2,191,424 12,399 12,399 1,623 1,623 1,930,736 2,205,446 1,665,544 1,899,044 10,337 10,337 240,833 282,043 1,916,714 2,191,424 258,159 824,318 245,622 811,781 $ 1,244,195 $ 1,242,984	Total
			3,003,205 17,249 9,310
			3,029,764
			2,623,548 444 379,213
			3,003,205
			2,191,424 12,399 1,623
			2,205,446
			1,899,044 10,337 282,043
			2,191,424
			824,318
			811,781

The fair value of the investment property is determined by referring to the market price of similar real estate transaction or the value in use of the investment property. The value in use is the present value of the future cash flows from continuous lease activities. On December 31, 2022 and 2021, the estimated discount rate used for calculating the present value of the future cash flows was 6.83% and 5.79%, respectively.

(Continued)

38

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(l) Intangible assets

The movements of costs, and accumulated amortization and impairment loss of intangible assets were as follows:

Net balance at January 1, 2022: Cost $ Accumulated amortization and impairment loss Net balance at January 1, 2022 Additions Amortization Net balance at December 31, 2022 $ Net balance at December 31, 2022: Cost $ Accumulated amortization and impairment loss $ Net balance at January 1, 2021: Cost $ Accumulated amortization and impairment loss Net balance at January 1, 2021 Additions Amortization Net balance at December 31, 2021 $ Net balance at December 31, 2021: Cost $ Accumulated amortization and impairment loss $	Goodwill 166,604 - 166,604 - - 166,604 166,604 - 166,604 166,604 - 166,604 - - 166,604 166,604 - 166,604	Trademarks and trade names 7,489,298 (7,489,298) - - - - 7,489,298 (7,489,298) - 7,489,298 (7,489,298) - - - - 7,489,298 (7,489,298) -	Patent 1,344,680 (1,342,995) 1,685 - (1,057) 628 1,344,680 (1,344,052) 628 1,344,680 (1,337,199) 7,481 - (5,796) 1,685 1,344,680 (1,342,995) 1,685	Software 669,019 (661,494) 7,525 25,960 (21,040) 12,445 320,325 (307,880) 12,445 670,320 (663,876) 6,444 7,810 (6,729) 7,525 669,019 (661,494) 7,525	Total 9,669,601 (9,493,787) 175,814 25,960 (22,097) 179,677 9,320,907 (9,141,230) 179,677 9,670,902 (9,490,373) 180,529 7,810 (12,525) 175,814 9,669,601 (9,493,787) 175,814

The amortization and impairment loss of intangible assets were included in operating expenses of the parent-company-only statements of comprehensive income.

(Continued)

39

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(m) Bonds payable

Unsecured bonds payable	December 31, 2022 $ 10,000,000	December 31, 2021
		10,000,000

On April 27, 2021, the Company issued $5,000,000 of unsecured corporate bonds at par value with 5-year term repayable on maturity. The bonds bear annual coupon rate of 0.76% and interests are payable annually at coupon rate from the issuance date. On August 26, 2021, the Company issued $5,000,000 of unsecured corporate bonds at par value with 5-year term repayable in two equal installments on August 26, 2025 and on maturity. The bonds bear annual coupon rate of 0.62% and interests are payable annually at coupon rate from the issuance date.

(n) Lease liabilities

• (i) The carrying amounts of lease liabilities were as follows:

Current Non-current	December 31, 2022 $ 63,209 $ 57,923	December 31, 2021
		43,432
		33,810

Please refer to note 6(z) for maturity analysis.

• (ii) The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value assets	2022 $ 1,469 $ 9 $ -	2021
		891
		3,129
		33

(iii) The amounts recognized in the statement of cash flows for the Company were as follows:

Total cash outflow for leases	2022 $ 84,955	2021
		81,077

(iv) Major terms of leases

The Company leases buildings, vehicles, office equipment, and miscellaneous equipment with lease terms ranged from 1 to 5 years. As certain leases of office and miscellaneous equipment meet the definition of short-term lease or lease of low-value assets, the Company has elected to apply exemption and not to recognize right-of-use assets and lease liabilities.

(Continued)

40

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

－ (o) Provisions current

Balance at January 1, 2022 Additions Amount utilized Effect of exchange rate changes Balance at December 31, 2022 Balance at January 1, 2021 Additions Amount utilized Effect of exchange rate changes Balance at December 31, 2021	Warranties $ 579,275 440,639 (296,245) 7,774 $ 731,443 $ 482,287 312,444 (214,101) (1,355) $ 579,275	Litigation 193,830 - - 21,126 214,956 199,556 - - (5,726) 193,830	Environmental protection 61,620 59,024 (55,777) - 64,867 60,310 46,402 (45,092) - 61,620	Total 834,725 499,663 (352,022) 28,900 1,011,266 742,153 358,846 (259,193) (7,081) 834,725

(i) Warranties

The provision for warranties is made based on the number of units sold currently under warranty, historical rates of warranty claim on those units, and cost per claim to satisfy the warranty obligation. The Company reviews the estimation basis on an ongoing basis and revises it when appropriate.

(ii) Litigation

Litigation provisions are recorded for pending litigation when it is determined that an unfavorable outcome is probable and the amount of loss can be reasonably estimated.

(iii) Environmental protection

An environmental protection provision is made when products are sold and is estimated based on historical experience.

(p) Operating lease

The Company leases its investment property to others. The Company has classified these leases as operating leases as it does not transfer substantially all the risks and rewards incidental to ownership of the assets to lessees. Please refer to note 6(k) for the information of investment property.

(Continued)

41

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date, is as follows:

Less than 1 year 1 year to 2 years 2 years to 3 years 3 years to 4 years 4 years to 5 years Over 5 years Total undiscounted lease payments	December 31, 2022 $ 83,653 63,050 62,653 62,573 62,573 265,924 $ 600,426	December 31, 2021
		82,025 36,591 22,939 13,424 11,160 35,394
		201,533

In 2022 and 2021, the rental income from investment property amounted to $65,563 and $104,831, respectively, were recognized and included in other operating income and loss. Related repair and maintenance expenses recognized were as follows:

Arising from investment property that generated rental income during the period $ Arising from investment property that did not generate rental income during the period $	2022 25,951 7,816 33,767	2021
		34,756 11,957
		46,713

(q) Employee benefits

(i) Defined benefit plans

The reconciliation between the present value of defined benefit obligations and the net defined benefit liabilities for defined benefit plans was as follows:

Present value of benefit obligations Fair value of plan assets Net defined benefit liabilities (reported under other non- current liabilities)	December 31, 2022 $ 862,598 (252,072) $ 610,526	December 31, 2021 945,444 (226,570) 718,874

The Company makes defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pension benefits for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive a payment based on years of service and average salary for the six months prior to the employee’s retirement.

(Continued)

42

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

1) Composition of plan assets

The pension fund (the “Fund”) contributed by the Company is managed and administered by the Bureau of Labor Funds of the Ministry of Labor (the Bureau of Labor Funds). According to the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” , with regard to the utilization of the Fund, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks. The Company also established pension funds in accordance with the “ Regulations Governing the Management, Investment, and Distribution of the Employees’ Retirement Fund Established by a Profit-seeking Enterprise” , which are funded by time deposits and bank deposits deposited in the designated financial institutions. The administration of pension funds is separate from the Company, and the principal and interest from such funds shall not be used in any form except for the payment of pension and severance to employees.

As of December 31, 2022 and 2021, the balances of aforementioned pension funds were $252,072 and $226,570, respectively. For information on the domestic labor pension fund assets (including the asset portfolio and yield of the fund), please refer to the website of the Bureau of Labor Funds.

• 2) Movements in present value of the defined benefit obligations

Defined benefit obligations at January 1 Current service costs Interest expense Remeasurement on the net defined benefit liabilities: Actuarial loss (gain) arising from experience adjustments Actuarial loss (gain) arising from changes in demographic assumption Actuarial loss (gain) arising from changes in financial assumption Benefits paid by the company and the plan Liabilities assumed (transferred) due to the Group’s employee shift Defined benefit obligations at December 31	2022 $ 945,444 9,005 5,869 23,142 - (99,072) (11,487) (10,303) $ 862,598	2021 890,212 8,750 5,521 49,502 19,838 90,527 (97,193) (21,713) 945,444

(Continued)

43

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

3) Movements in fair value of plan assets

Fair value of plan assets at January 1 Interest income Remeasurement on the net defined benefit liabilities Return on plan assets (excluding amounts included in net interest expense) Benefits paid by the plan Contributions by the employer Payments to related parties for transferred employees Loss on curtailment Fair value of plan assets at December 31	2022 $ 226,570 914 13,348 (11,487) 27,752 - (5,025) $ 252,072	2021 314,957 1,381 2,499 (95,960) 27,103 (1,196) (22,214) 226,570

• 4) Changes in the effect of the asset ceiling

In 2022 and 2021, there was no effect of the asset ceiling.

• 5) Expenses recognized in profit or loss

Current service costs Net interest expense Loss on curtailment Classified under operating expense	2022 $ 9,005 4,955 5,025 $ 18,985 $ 18,985	2021
		8,750 4,140 22,214
		35,104
		35,104

• 6) Actuarial assumptions

The principal assumptions of the actuarial valuation were as follows:

Discount rate Future salary increases rate	December 31, 2022 December 31, 2021 % 1.750 % 0.625 % 4.000 % 4.000

The Company expects to make contribution of $26,736 to the defined benefit plans in the year following December 31, 2022. The weighted average duration of the defined benefit plans is 12.09 years.

(Continued)

44

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

7) Sensitivity analysis

The following table summarizes the impact of a change in the assumptions on the present value of the defined benefit obligation on December 31, 2022 and 2021.

Discount rate Future salary increasing rate	December	December	31, 2022		December 31, 2021	December 31, 2021
	0.25% Increase		0.25% Decrease		0.25% Increase	0.25% Decrease ) 25,665 (23,636)
	$ (20,117)		20,774		(24,802
	$ 19,840		(19,317	)	24,284

The above sensitivity analysis considers the change in one assumption at a time, leaving other assumptions unchanged. This approach shows the isolated effect of changing one individual assumption but does not take into account that some assumptions are interrelated. The method used to carry out the sensitivity analysis is consistent with the calculation of the net defined benefit liabilities recognized in the balance sheets. The method and assumptions used to carry out the sensitivity analysis is the same as in the prior year.

(ii) Defined contribution plans

The Company contributes monthly an amount equal to 6% of each employee’s monthly wages to the employee’ s individual pension fund account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company has no legal or constructive obligation to pay additional amounts after contributing a fixed amount to the Bureau of Labor Insurance.

For the years ended December 31, 2022 and 2021, the Company recognized pension expenses of $85,098 and $84,708, respectively, which had been contributed to the Bureau of Labor Insurance, in relation to the defined contribution plans.

(r) Income taxes

(i) The components of income tax expense were as follows:

Current income tax expense Current period Adjustments for prior years Deferred tax expense Origination and reversal of temporary differences Change in unrecognized deductible temporary differences Income tax expense	2022 $ 1,060,710 (213) 1,060,497 60,066 235,599 295,665 $ 1,356,162	2021 2,869,233 12,571 2,881,804 (306,644) 230,274 (76,370) 2,805,434

(Continued)

45

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The components of income tax benefit (expense) recognized in other comprehensive income were as follows:

Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans	2022 $ 17,856	2021 (31,474)

Reconciliation between the expected income tax expense calculated based on the Company's statutory tax rate and the actual income tax expense reported in the statements of comprehensive income was as follows:

Income before taxes Income tax using the Company’s statutory tax rate Adjustments for prior-year income tax expense Change in unrecognized temporary differences Undistributed earnings additional tax Others	2022 $ 6,359,850 $ 1,271,970 (213) 235,599 1,187 (152,381) $ 1,356,162	2021 13,702,861 2,740,572 12,571 230,274 - (177,983) 2,805,434

(ii) Deferred income tax assets and liabilities

• 1) Unrecognized deferred income tax assets

Loss associated with investments in subsidiaries Deductible temporary differences	December 31, 2022 $ 2,069,328 816,471 $ 2,885,799	December 31, 2021 2,170,378 1,210,727 3,381,105

The above deferred income tax assets were not recognized as management believed that it is not probable that future taxable profits will be available against which the Company can utilize the benefits therefrom.

2) Unrecognized deferred income tax liabilities

The Company is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2022 and 2021. As management believed that it is probable that the temporary differences will not reverse in the foreseeable future, such temporary differences were not recognized as deferred income tax liabilities. The related amounts were as follows:

Profits associated with investments in subsidiaries	December 31, 2022 $ 884,717	December 31, 2021 1,615,622

(Continued)

46

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

3) Recognized deferred income tax assets and liabilities

Changes in the amount of deferred income tax assets and liabilities were as follows:

Deferred income tax assets:

Remeasurements of defined benefit plans Balance at January 1, 2022 $ 103,316 Recognized in other comprehensive income (17,856) Balance at December 31, 2022 $ 85,460 Balance at January 1, 2021 $ 71,842 Recognized in profit or loss - Recognized in other comprehensive income 31,474 Balance at December 31, 2021 $ 103,316	Accrued expenses and costs 2,997,334 - 2,997,334 1,839,866 1,157,468 - 2,997,334	Total 3,100,650 (17,856) 3,082,794 1,911,708 1,157,468 31,474 3,100,650

Deferred income tax liabilities:

Balance at January 1, 2022 Recognized in profit or loss Balance at December 31, 2022 Balance at January 1, 2021 Recognized in profit or loss Balance at December 31, 2021	Income from investments accounted for using the equity method $ 3,756,686 766,775 $ 4,523,461 $ 2,864,350 892,336 $ 3,756,686	Others 477,708 (471,110) 6,598 288,946 188,762 477,708	Total
			4,234,394 295,665
			4,530,059
			3,153,296 1,081,098
			4,234,394

(iii) No income tax was recognized directly in equity in 2022 and 2021.

(iv) The Company’s income tax returns for the years through 2019 were examined and approved by the R.O.C. income tax authorities.

(Continued)

47

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(s) Capital and other equity

• (i) Common stock

As of December 31, 2022 and 2021, the Company had issued 5,664 thousand units and 5,707 thousand units, respectively, of global depository receipts (GDRs). The GDRs were listed on the London Stock Exchange, and each GDR represents five common shares.

As of December 31, 2022 and 2021, the Company’ s authorized shares of common stock consisted of 4,000,000 thousand shares, of which 3,047,854 thousand shares were issued. The par value of the Company’s common stock is $10 per share. All issued shares were paid up upon issuance.

Certain shares of common stock were not outstanding as they were repurchased by the Company or held by the Company’ s subsidiaries. The movements in outstanding shares of common stock were as follows (in thousands of shares):

Balance at January 1 (Balance at December 31) (ii) Capital surplus Paid-in capital in excess of par value Surplus from mergers Surplus related to treasury stock transactions and cash dividend Difference between consideration and carrying amount of subsidiaries acquired or disposed Employee share options Surplus from equity-method investments

Pursuant to the Company Act, any realized capital surplus is initially used to cover accumulated deficit, and the balance, if any, could be transferred to common stock as stock dividends or distributed by cash based on the original shareholding ratio. Realized capital surplus includes the premium derived from the issuance of shares of stock in excess of par value and donations received by the Company. In accordance with the “Regulations Governing the Offering and Issuance of Securities by Securities Issuers”, distribution of stock dividends from capital surplus in any one year shall not exceed 10% of paid-in capital.

(Continued)

48

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(iii) Legal reserve, special reserve, surplus distribution and dividend policy

The Company’s Articles of Incorporation stipulate that at least 10% of annual net income, after deducting accumulated deficit, if any, must be retained as legal reserve until such retention equals the amount of paid-in capital. In addition, a special reserve shall be set aside in accordance with applicable laws and regulations. The remaining balance, together with the unappropriated earnings from the previous years, after retaining a certain portion of it for business considerations, can be distributed as dividends to stockholders. Except for the distribution of capital surplus and legal reserve in accordance with applicable laws and regulations, the Company cannot distribute any earnings when there are no retained earnings. The distributable dividends in whole or in part will be paid in cash by the Company after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting.

Since the Company operates in an industry experiencing rapid change and development, earnings are distributed in consideration of the current year’s earnings, the overall economic environment, related laws and decrees, and the Company’ s long-term development and stability in its financial position. The Company has adopted a stable dividend policy, in which a cash dividend comprises at least 10% of the total dividend distribution.

Additionally, pursuant to the Company Act, if the Company has no accumulated deficit, it may, pursuant to a resolution approved by the stockholders, distribute its legal reserve by issuing new shares or distributing cash for the portion of legal reserve which exceeds 25% of the paid-in capital.

In accordance with the rulings issued by the FSC, a special reserve shall be retained at an amount equal to the proportionate share of the carrying value of the treasury stock held by subsidiaries in excess of the market value at the reporting date. The special reserve may be reversed when the market value recovers in subsequent periods.

In accordance with the rulings issued by the FSC, a special reserve equal to the total amount of items that are accounted for as deductions from stockholders’ equity shall be set aside from the after-tax net profit in the period, plus items other than the after-tax net profit in the period, that are included in the undistributed current-period earnings and undistributed prior-period earnings. This special reserve shall revert to retained earnings and be made available for distribution when the items that are accounted for as deductions from stockholders’ equity are reversed in subsequent periods.

On March 16, 2022, the Company’ s Board of Directors approved the distribution of cash dividends amounting to $6,949,107 ($2.28 per share), of which $107,298 was distributed to the subsidiaries holding the Company’ s common shares. Additionally, on June 10, 2022, the Company’ s shareholders approved an appropriation of legal reserve and special reserve of $1,058,914 and $2,564,442, respectively.

(Continued)

49

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

On March 16, 2023, the Company’ s Board of Directors approved the distribution of cash dividends amounting to $4,571,781 ($1.5 per share), of which $70,119 was distributed to the subsidiaries holding the Company’s common shares.

On March 17, 2021, the Company’s Board of Directors had approved the distribution of cash dividends amounting to $4,571,781 ($1.5 per share), of which $70,119 was distributed to the subsidiaries holding the Company’ s common shares. Additionally, on July 9, 2021, the Company’ s shareholders approved an appropriation of legal reserve and special reserve of $602,575 and $857,485.

Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(iv) Treasury stock

As of December 31, 2022 and 2021, details of the GDRs (for the implementation of an overseas employee stock option plan) held by subsidiary ASCBVI and the Company’ s common stock held by subsidiaries ASCBVI (to maintain the Company’ s shareholders’ equity), CCI (to maintain the Company’s shareholders’ equity), and AGT (resulting from the acquisition of AGT) were as follows (expressed in thousands of shares):

December 31, 2022

Common stock GDRs Common stock GDRs		Number of shares	Number of shares	Number of shares
		Number of shares	Carrying amount $ 945,239 1,969,617 $ 2,914,856	Market value
		21,809 24,937 46,746		664,084 704,324
				1,368,408

(Continued)

50

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

According to the Securities and Exchange Act, treasury stock cannot be collateralized. In addition, treasury shares do not bear shareholder rights prior to being sold to third parties. Moreover, the number of treasury shares shall not exceed 10% of the number of common shares issued. The total amount of treasury stock shall not exceed the sum of retained earnings, paid-in capital in excess of par value, and other realized capital surplus.

• (v) Other equity items (net after tax)

• 1) Foreign currency translation differences:

Balance at January 1 Generated by the Company: Foreign exchange differences arising from translation of foreign operations Changes in ownership interests in subsidiaries Liquidation of subsidiaries Organizational restructuring under common control Balance at December 31	2022 $ (8,805,597) 4,595,828 (287) 1,855 (11,702) $ (4,219,903)	2021 (6,043,227) (2,766,226) 3,856 - - (8,805,597)

2) Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income:

2022 Balance at January 1 $ 746,183 Generated by the Company: Change in fair value of financial assets measured at fair value through other comprehensive income (1,127,724) Disposal of financial assets measured at fair value through other comprehensive income - Share of other comprehensive income (loss) of subsidiaries (77,205) Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries 43,825 Changes in ownership interests in subsidiaries 5,195 Balance at December 31 $ (409,726) 3) Remeasurement of defined benefit plans: 2022 Balance at January 1 $ (228,210) Change in the period (generated by the Company) 71,422 Share of other comprehensive income of subsidiaries 464,195 Changes in ownership interests in subsidiaries 7,486 Reorganization under common control 5,483 Balance at December 31 $ 320,376

2021 768,662 (83,057) (40,230) (241,168) 348,520 (6,544) 746,183 2021 (242,887) (125,894) 137,811 2,760 - (228,210)

(Continued)

51

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(t) Earnings per share (“EPS”)

• (i) Basic earnings per share

The basic earnings per share were calculated as the earnings attributable to the shareholders of the Company divided by the weighted-average number of common shares outstanding as follows:

Net income attributable to the ordinary shareholders of the Parent Weighted-average number of ordinary shares outstanding (in thousands) Basic earnings per share (in New Taiwan dollars) (ii) Diluted earnings per share Net income attributable to the ordinary shareholders of the Parent Weighted-average number of ordinary shares outstanding (in thousands) Effect of dilutive potential common stock (in thousands): Effect of employee remuneration in stock Weighted-average shares of common stock outstanding (including effect of dilutive potential common stock) (in thousands) Diluted earnings per share (in New Taiwan dollars)	2022 $ 5,003,688 3,001,108 $ 1.67 2022 $ 5,003,688 3,001,108 25,195 3,026,303 $ 1.65	2021
		10,897,427
		3,001,108
		3.63
		2021
		10,897,427
		3,001,108 27,180
		3,028,288
		3.60

(u) Revenue from contracts with customers

(i) Disaggregation of revenue

Primary geographical markets: EMEA Pan America Asia Pacific		2022
	IT Hardware Products $ 55,015,347 32,703,859 55,409,798 $ 143,129,004	Others 7,278,735 6,834,723 12,042,302 26,155,760	Total
			62,294,082 39,538,582 67,452,100
			169,284,764

(Continued)

52

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Primary geographical markets: EMEA Pan America Asia Pacific Contract balances Notes and accounts receivable (including receivables from related parties) Less: loss allowance Contract assets－current Contract liabilities－current	IT Hardware Products $ 82,901,974 63,536,596 64,632,708 $ 211,071,278 December 31, 2022 $ 16,315,190 (1,755) $ 16,313,435 $ - $ 8,809			2021	Total 93,467,499 73,770,780 79,590,177 246,828,456 January 1, 2021 30,508,838 (2,221) 30,506,617 250 79,131
		IT Hardware Products	Others 10,565,525 10,234,184 14,957,469 35,757,178 December 31, 2021 43,856,087 (1,798) 43,854,289 - 9,512

(ii) Contract balances

Please refer to note 6(e) for details on notes and accounts receivable and related loss allowance.

The major changes in the balance of contract assets and liabilities were due to the timing difference between the satisfaction of performance obligation and the receipt of customer’s payment.

The amount of revenue recognized in 2022 and 2021 that was included in the contract liability balance at January 1, 2022 and 2021, was $847 and $72,378, respectively.

(v) Remuneration to employees and directors

The Company’s Articles of Incorporation require that annual earning shall first be offset against any deficit, then, a minimum of 4% shall be allocated as employee remuneration and a maximum of 0.8% be allocated as directors’ remuneration. Employees who are entitled to receive the abovementioned employee remuneration, in share or cash, include the employees of subsidiaries of the Company who meet certain specific requirements.

(Continued)

53

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

For the years ended December 31, 2022 and 2021, the Company accrued its remuneration to employees amounting to $475,000 and $720,000, respectively, and the remuneration for directors of $18,800 and $29,819, respectively. The said amounts, which were recognized as operating expenses, were calculated based on pre-tax net profit for each year before deducting the amount of the remuneration to employees and directors, multiplied by the proposed distribution ratio of remuneration to employees and directors.

Except that the remuneration to directors for 2022 resolved by the Company’s Board of Directors on March 16, 2023 was $7,000 and that for 2021 resolved by the Company's Board of Directors on March 16, 2022 was $12,000, the aforementioned accrued remunerations to employees were the same as the amounts resolved by the Board of Directors, which were all paid in cash. The difference between accrual and actual payment, amounting to $11,800 and $17,819 for 2022 and 2021, respectively, is treated as change in accounting estimate and recognized in profit or loss in the following year.

Related information is available on the Market Observation Post System website of Taiwan Stock Exchange.

• (w) Other operating income and expenses – net

Rental income (x) Non-operating income and loss (i) Interest income Interest income from bank deposits Other interest income (ii) Other income Dividend income	2022 $ 132,051 2022 $ 64,625 9,996 $ 74,621 2022 $ 519,988	2021 161,174 2021 39,675 2,759 42,434 2021 287,772

(Continued)

54

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(iii) Other gains and losses Gain on disposal of equipment and intangible assets Foreign currency exchange (loss) gain, net Gain (loss) on financial assets and liabilities measured at fair value through profit or loss Loss on liquidation of subsidiaries Other investment gain Others (note 7(b)-(v)) (iv) Finance costs Interest expense from bank loans and bonds payable Interest expense on lease liabilities Others	2022 $ 670 (3,091,050) 2,992,204 (2,301) - 41,030 $ (59,447) 2022 $ 110,310 1,469 1,754 $ 113,533	2021 657 377,680 (475,157) - 196 62,700 (33,924) 2021 47,624 891 3,147 51,662

(y) Financial instruments and fair value information (i) Categories of financial instruments 1) Financial assets

Financial assets measured at fair value through profit or loss Financial assets measured at fair value through other comprehensive income Financial assets measured at amortized cost: Cash and cash equivalents Notes and accounts receivable and other receivables (including receivables from related parties) Financial assets measured at amortized cost – non- current Other financial assets – non-current	December 31, 2022 $ 125,665 6,465,744 16,424,913 17,515,548 797,782 148,466 $ 41,478,118	December 31, 2021
		443,248 6,690,542 20,564,678 44,782,045 - 160,566
		72,641,079

(Continued)

55

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

• 2) Financial liabilities

Financial liabilities measured at fair value through profit or loss Financial liabilities measured at amortized cost: Notes and accounts payable (including payables to related parties) Other payables (including payables to related parties) Lease liabilities (including current and non- current) Bonds payable	December 31, 2022 $ 714,504 21,857,688 27,585,516 121,132 10,000,000 $ 60,278,840	December 31, 2021
		145,969 48,606,709 27,092,942 77,242 10,000,000
		85,922,862

• (ii) Fair value information

• 1) Financial instruments not measured at fair value

The Company considers that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

• 2) Financial instruments measured at fair value

The following financial instruments are measured at fair value on a recurring basis.

The table below analyzes the financial instruments measured at fair value subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. The different levels have been defined as follows:

• a) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• c) Level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

(Continued)

56

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Financial assets mandatorily measured at fair value through profit or loss: Foreign currency forward contracts Stock listed on foreign markets Financial assets measured at fair value through other comprehensive income: Domestic listed stock Unlisted stock Financial liabilities measured at fair value through profit or loss: Foreign currency forward contracts Financial assets measured at amortized cost: Corporate bonds carrying fixed interest rates Callable bonds carrying fixed interest rates Financial assets mandatorily measured at fair value through profit or loss: Foreign currency forward contracts Stock listed on foreign markets Financial assets measured at fair value through other comprehensive income: Domestic listed stock Unlisted stock Financial liabilities measured at fair value through profit or loss: Foreign currency forward contracts			December 31, 2022	December 31, 2022	Total 123,004 2,661 125,665 6,143,288 322,456 6,465,744 (714,504) 177,410 591,950 769,360 Total 441,494 1,754 443,248 6,533,121 157,421 6,690,542 (145,969)
			Fair value
	Level 1 $ - 2,661 $ 2,661 $ 6,143,288 - $ 6,143,288 $ - $ 177,410 - $ 177,410		Level 2 123,004 - 123,004 - - - (714,504) - 591,950 591,950 December	Level 3 - - - - 322,456 322,456 - - - - 31, 2021
			Fair value
			Level 2 441,494 - 441,494 - - - (145,969)	Level 3 - - - - 157,421 157,421 -

There were no transfers among fair value hierarchies for the years ended December 31, 2022 and 2021.

(Continued)

57

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• 3) Movement in financial assets included in Level 3 fair value hierarchy

Movement in financial assets included in Level 3 fair	value hierarchy
Balance at January 1 Additions Disposals Balance at December 31	Financial assets measured at fair value through other comprehensive income 2022 2021 $ 157,421 140,266 165,035 20,000 - (2,845) $ 322,456 157,421
	2022 $ 157,421 165,035 - $ 322,456

• 4) Valuation techniques and inputs used for financial instruments measured at fair value

• a) The fair values of financial assets with standard terms and conditions and traded on active markets are determined with reference to quoted market prices (e.g. listed stocks).

• b) The fair value of derivative financial instruments is determined using a valuation technique, with estimates and assumptions consistent with those used by market participants that are readily available to the Company. The fair value of foreign currency forward contracts is computed individually by each contract using the valuation technique.

• c) The fair value of unlisted stocks in Level 3 fair value hierarchy is estimated by using the market approach and is determined by reference to recent financing activities, valuations of similar companies, market conditions, and other economic indicators. The significant unobservable input is the liquidity discount. No quantitative information is disclosed due to the possible changes in liquidity discount would not cause significant potential financial impact.

• (iii) Offsetting of financial assets and liabilities

The Company has financial instrument transactions which are set off in accordance with paragraph 42 of IAS 32; the related financial assets and liabilities are presented in the balance sheets on a net basis.

(Continued)

58

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The table below summarizes the related information of offsetting of financial assets and liabilities:

			December 31, 2022	December 31, 2022
Financial assets		subject to offsetting, enforceable master netting			arrangements or similar agreements
			Gross amounts
		Gross	of recognized
		amounts of	financial	Net amounts of
		recognized	liabilities offset	financial assets
		financial	in the balance	presented in the	Amount not	set off in the
		assets	sheet	balance sheet	balance	sheet (d)	Net amounts
					Financial Cash collateral
		(a)	(b)	(c)=(a)-(b)	instruments	received	(e)=(c)-(d)
Notes and accounts
receivable, net	$	23,100,619	19,530,644	3,569,975	-	-	3,569,975
			December 31, 2022
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements
		Gross	Gross amounts	Net amounts of
		amounts of	of recognized	financial
		recognized	financial assets	liabilities
		financial	offset in the	presented in the	Amount not set off in the
		liabilities	balance sheet	balance sheet	balance	sheet (d)	Net amounts
					Financial	Cash collateral
		(a)	(b)	(c)=(a)-(b)	instruments	received	(e)=(c)-(d)
Notes and accounts
payable	$	40,630,046	19,530,644	21,099,402	-	-	21,099,402
			December 31, 2021
Financial assets		subject to offsetting, enforceable master netting			arrangements or similar agreements
			Gross amounts
		Gross	of recognized
		amounts of	financial	Net amounts of
		recognized	liabilities offset	financial assets
		financial	in the balance	presented in the	Amount not	set off in the
		assets	sheet	balance sheet	balance	sheet (d)	Net amounts
					Financial Cash collateral
		(a)	(b)	(c)=(a)-(b)	instruments	received	(e)=(c)-(d)
Notes and accounts
receivable, net	$	50,654,082	44,318,318	6,335,764	-	-	6,335,764
			December 31, 2021
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements
		Gross	Gross amounts	Net amounts of
		amounts of	of recognized	financial
		recognized	financial assets	liabilities
		financial	offset in the	presented in the	Amount not set off in the
		liabilities	balance sheet	balance sheet	balance	sheet (d)	Net amounts
					Financial	Cash collateral
		(a)	(b)	(c)=(a)-(b)	instruments	received	(e)=(c)-(d)
Notes and accounts
payable	$	92,296,162	44,318,318	47,977,844	-	-	47,977,844

(Continued)

59

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(z) Financial risk management

The Company is exposed to credit risk, liquidity risk, and market risk (including currency risk, interest rate risk, and other market price risk). The Company has disclosed the information on exposure to the aforementioned risks and the Company’s policies and procedures to measure and manage those risks as well as the quantitative information below.

The Board of Directors are responsible for developing and monitoring the Company’ s risk management policies. The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor adherence to the controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s operations.

The Company’ s management monitors and reviews the financial activities in accordance with procedures required by relevant regulations and internal controls. Internal auditors undertake reviews of risk management controls and procedures, and the results of which are reported to the Board of Directors on a regular basis.

(i) Credit risk

• 1) The maximum exposure to credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations, and arises principally from the Company’ s cash and cash equivalents, derivative instruments, receivables from customers, and other receivables. The maximum exposure to credit risk is equal to the carrying amount of the Company’s financial assets.

2) Concentration of credit risk

The Company primarily sells and markets its multi-branded IT products through its subsidiaries and distributors in different geographic areas. The Company believes that there is no significant concentration of credit risk due to the Company’s large number of customers and their wide geographical spread.

3) Credit risk from receivables

Please refer to note 6(e) for credit risk exposure of notes and accounts receivable. Other financial assets measured at amortized cost include bonds carrying fixed interest rates, other receivables (refer to note 6(f)) and time deposits (classified as other financial assets). Abovementioned financial assets are considered low-credit-risk financial assets, and thus, the loss allowance is measured using 12 months ECL. Please refer to note 4(f) for descriptions about how the Company determines the credit risk.

(Continued)

60

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in settling its financial liabilities by delivering cash or another financial assets. The Company manages liquidity risk by monitoring regularly the current and mid- to long-term cash demand, maintaining adequate cash and banking facilities, and ensuring compliance with the terms of the loan agreements. As of December 31, 2022 and 2021, the Company had unused credit facilities of $35,045,988 and $33,798,870, respectively.

The table below is the maturity profile of the Company’ s financial liabilities based on contractual undiscounted payments, including principal and estimated interest.

December 31, 2022 Non-derivative financial liabilities: Bonds payable Notes and accounts payable (including related parties) Other payables (including related parties) Lease liability Derivative financial instruments: Foreign currency forward contracts－settled in gross Outflow Inflow December 31, 2021 Non-derivative financial liabilities: Bonds payable Notes and accounts payable (including related parties) Other payables (including related parties) Lease liability Derivative financial instruments: Foreign currency forward contracts－settled in gross Outflow Inflow	Contractual cash flows $ 10,260,500 21,857,688 27,585,516 122,738 $ 59,826,442 $ 42,059,383 (41,583,557) $ 475,826 $ 10,329,500 48,606,709 27,092,942 78,063 $ 86,107,214 $ 53,405,805 (53,670,897) $ (265,092)	Within 1 year 69,000 21,857,688 24,918,741 64,177 46,909,606 42,059,383 (41,583,557) 475,826 69,000 48,606,709 24,778,327 43,968 73,498,004 53,405,805 (53,670,897) (265,092)	1-2 years 69,000 - 2,666,775 40,653 2,776,428 - - - 69,000 - 2,314,615 19,616 2,403,231 - - -	2-5 years 10,122,500 - - 17,908
				10,140,408
				- -
				-
				10,191,500 - - 14,479
				10,205,979
				- -
				-

The Company does not expect that the cash flows included in the maturity analysis would occur significantly earlier or at significantly different amounts.

(iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, and will affect the Company’s income or the value of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(Continued)

61

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company utilizes derivative financial instruments to manage market risks and the volatility of profit or loss. All such transactions are carried out within the guidelines set by the Board of Directors.

1) Foreign currency risk

The Company is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the functional currency of the Company. The foreign currencies used in these transactions are mainly the Europe Currency (EUR) and the US dollar (USD), Australian dollar (AUD), Indian Rupee (INR), etc. The Company utilizes foreign currency forward contracts to hedge its foreign currency exposure with respect to its forecast sales and purchases over the following 12 months.

Exposure to foreign currency risk and sensitivity analysis:

The Company’s exposure to foreign currency risk arises from cash and cash equivalents, notes and accounts receivable/payable (including related parties), and other receivables/ payables (including related parties) that are denominated in foreign currencies. At the reporting date, the carrying amounts of the Company’s significant monetary assets and liabilities denominated in a currency other than the functional currency of the Company and their sensitivity analysis were as follows:

(in thousands)

		(in thousands)	(in thousands)	(in thousands)
Financial assets Monetary items USD INR Financial liabilities Monetary items USD EUR		December 31, 2022
	Foreign currency $ 767,940 9,337,477 1,355,712 79,900	Exchange rate 30.7080 0.3712 30.7080 32.8729	NTD 23,581,902 3,466,071 41,631,204 2,626,545	Change in magnitude Pre-tax effect on profit or loss % 1 235,819 % 1 34,661 % 1 416,312 % 1 26,265

(Continued)

62

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(in thousands)

		(in thousands)	(in thousands)	(in thousands)
Financial assets Monetary items EUR USD AUD INR Financial liabilities Monetary items USD		December 31, 2021
	Foreign currency $ 176,651 1,714,773 112,017 13,403,716 2,532,956	Exchange rate 31.4835 27.6900 20.1112 0.3725 27.6900	NTD 5,561,592 47,482,064 2,252,796 4,992,884 70,137,552	Change in magnitude Pre-tax effect on profit or loss % 1 55,616 % 1 474,821 % 1 22,528 % 1 49,929 % 1 701,376

With varieties of foreign currencies, the Company disclosed foreign exchange gain (loss) on monetary items in aggregate. Please refer to note 6(x) for further information.

2) Other market price risk

The Company is exposed to the risk of price fluctuation in securities resulting from its investment in publicly traded stocks. The Company supervises the equity price risk actively and manages the risk based on fair value. The Company also has strategic investments in privately held stocks, in which the Company does not actively participate in their trading.

Assuming a hypothetical increase or decrease of 5% in equity prices of the equity investments at each reporting date, the other comprehensive income for the years ended December 31, 2022 and 2021, would have increased or decreased by $323,287 and $334,527, respectively.

(aa) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Company maintains an optimal capital structure to enhance long-term shareholder value by managing its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, research and development activities, dividend payments, and other business requirements for continuing operations and to reward shareholders and take into consideration the interests of other stakeholders.

(Continued)

63

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (ab) Investing and financing activities not affecting cash flows

• (i) Please refer to note 6(j) for a description of acquisition of right-of-use assets through leases in 2022 and 2021.

• (ii) The reconciliation of liabilities arising from financing activities were as follows:

Lease liabilities Loans from related parties Bonds payable Total liabilities from financing activities Long-term debt Lease liabilities Loans from ralated parties Bonds payable Total liabilities from financing activities	January 1, 2022 $ 77,242 315,000 10,000,000 $ 10,392,242 January 1, 2021 $ 3,300,000 74,685 595,000 - $ 3,969,685	Cash flows (83,477) (225,000) - (308,477) Cash flows (3,300,000) (77,024) (280,000) 10,000,000 6,342,976	Non-cash changes of leasing 127,367 - - 127,367 Non-cash changes of leasing - 79,581 - - 79,581	December 31, 2022
				121,132 90,000 10,000,000
				10,211,132
				December 31, 2021
				- 77,242 315,000 10,000,000
				10,392,242

7. Related-party transactions

• (a) Related party name and categories

The followings are subsidiaries and other related parties that have had transactions with the Company during the reporting periods.

Name of related party	Relationship with the Company
Acer Market Services Limited (AMS)	Subsidiaries
Acer Computer (Far East) Limited (AFE)	Subsidiaries
Acer Information (Zhong Shan) Co., Ltd. (AIZS)	Subsidiaries
Acer Computer (Shanghai) Ltd. (ACCN)	Subsidiaries
Acer (Chongqing) Ltd. (ACCQ)	Subsidiaries
Acer European Holdings SA (AEH)	Subsidiaries
Acer Europe B.V. (AHN)	Subsidiaries
Acer Africa (Proprietary) Limited (AAF)	Subsidiaries
AGP Insurance (Guernsey) Limited (AGU)	Subsidiaries
Acer Sales International SA (ASIN)	Subsidiaries
Acer Europe SA (AEG)	Subsidiaries
Sertec 360 SA (SER)	Subsidiaries
Acer Computer France S.A.S.U. (ACF)	Subsidiaries

(Continued)

64

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
Acer U.K. Limited (AUK)	Subsidiaries
Acer Italy S.R.L. (AIT)	Subsidiaries
Acer Computer GmbH (ACG)	Subsidiaries
Acer Austria GmbH (ACV)	Subsidiaries
Acer Czech Republic S.R.O. (ACZ)	Subsidiaries
Acer Computer Iberica, S.A. (AIB)	Subsidiaries
Acer Computer (Switzerland) AG (ASZ)	Subsidiaries
Asplex Sp. z o.o. (APX)	Subsidiaries
Acer Marketing Services LLC (ARU)	Subsidiaries
Acer Poland sp. z o.o. (APL)	Subsidiaries
Acer Bilisim Teknolojileri Limited Sirketi (ATR)	Subsidiaries
Acer Computer B.V. (ACH)	Subsidiaries
CPYou B.V. (CPY)	Subsidiaries
Enfinitec B.V. (ENNL)	Subsidiaries
Enfinitec Italy S.R.L. (ENIT)	Subsidiaries
Acer Computer Norway AS (ACN)	Subsidiaries
Acer Finland Oy (AFN)	Subsidiaries
Acer Sweden AB (ACW)	Subsidiaries
Acer Denmark A/S (ACD)	Subsidiaries
Boardwalk Capital Holdings Limited (Boardwalk)	Subsidiaries
Acer Computec Mexico, S.A. de C.V. (AMEX)	Subsidiaries
Acer American Holdings Corp. (AAH)	Subsidiaries
AGP Tecnologia em Informatica do Brasil Ltda. (ATB)	Subsidiaries
Acer Cloud Technology Inc. (ACTI)	Subsidiaries
Acer Cloud Technology (US), Inc. (ACTUS)	Subsidiaries
Gateway, Inc. (GWI)	Subsidiaries
Acer America Corporation (AAC)	Subsidiaries
Acer Service Corporation (ASC)	Subsidiaries
Acer Holdings International, Incorporated (AHI)	Subsidiaries
Acer Computer Co., Ltd. (ATH)	Subsidiaries
Acer Japan Corp. (AJC)	Subsidiaries
Acer Computer Australia Pty. Limited (ACA)	Subsidiaries
Acer Sales and Services SDN BHD (ASSB)	Subsidiaries
Acer Asia Pacific Sdn Bhd (AAPH)	Subsidiaries
Acer Computer (Singapore) Pte. Ltd. (ACS)	Subsidiaries
Acer Computer New Zealand Limited (ACNZ)	Subsidiaries
PT. Acer Indonesia (AIN)	Subsidiaries
PT. Acer Manufacturing Indonesia (AMI)	Subsidiaries
Acer India Private Limited (AIL)	Subsidiaries

(Continued)

65

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party Relationship with the Company Acer Vietnam Co., Ltd. (AVN) Subsidiaries Acer Philippines, Inc. (APHI) Subsidiaries Servex (Malaysia) Sdn Bhd (SMA) Subsidiaries Weblink International Inc. (WLII) Subsidiaries Wellife Inc. (WELL) Subsidiaries Pecer Bio-medical Technology Incorporated (PBT) Subsidiaries Protrade Applied Materials Corp. (PAM) Subsidiaries Protrade Global Limited (PGL) Subsidiaries Snoqualmie Company Ltd. (SCL) Subsidiaries Protrade Asia Limited (PAL) Subsidiaries Dakota Co., Ltd. (DCL) Subsidiaries Cascadia Resources Inc. (CRI) Subsidiaries Protrade Shanghai Trading Co., Ltd. (PST) Subsidiaries Protrade Resources Vietnam Company Limited (PRV) Subsidiaries Acer Synergy Tech Corp. (AST) Subsidiaries Shanghai AST Technology Service Ltd. (ASTS) Subsidiaries ISU Service Corp. (ISU) Subsidiaries Acer Synergy Tech America Corporation (ASTA) Subsidiaries Acer Digital Service Co. (ADSC) Subsidiaries Keypack Technology Incorporated (KTI) Subsidiaries Acer Gaming Inc. (AGM) Subsidiaries Acer Global Merchandise Philippines Inc. (AGPH) Subsidiaries Winking Entertainment Ltd (WKC) Subsidiaries (note 1) Winking Entertainment Corporation (WKTW) Subsidiaries (note 1) Winking Skywalker Entertainment Limited (WKSK) Subsidiaries (note 1) Winking Art Pte. Ltd (WKSG) Subsidiaries (note 1) Winking Entertainment (HK) Ltd Subsidiaries (note 1) Shanghai Winking Entertainment Limited (WKSH) Subsidiaries (note 1) Shanghai Wishing Entertainment Limited (SHW) Subsidiaries (note 1) Nanjing Winking Entertainment Ltd (WKNJ) Subsidiaries (note 1) Winking Entertainment Investment Limited Subsidiaries Winking Art Limited (WKHK) Subsidiaries Cross Century Investment Limited (CCI) Subsidiaries Acer SoftCapital Incorporated (ASCBVI) Subsidiaries DropZone Holding Limited (DZH) Subsidiaries DropZone (Hong Kong) Limited (DZL) Subsidiaries Acer Gadget Inc. (AGT, formerly ETEN) Subsidiaries (note 2) GadgeTek (Shanghai) Limited (GCN) Subsidiaries Acer BeingWare Holding Inc. (ABH) Subsidiaries

(Continued)

66

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
Acer Cloud Technology (Taiwan) Inc. (ACTTW)	Subsidiaries
Altos Computing Inc. (ALT)	Subsidiaries
MPS Energy Inc. (MPS)	Subsidiaries
Acer e-Enabling Service Business Inc. (AEB)	Subsidiaries
Acer ITS Inc. (ITS)	Subsidiaries
Acer Medical Inc. (AMED)	Subsidiaries
Xplova Inc. (XPL)	Subsidiaries
Acer AI Cloud Inc. (AIC, Formerly Pawbo Inc.)	Subsidiaries
Acer Third Wave Software (Beijing) Co. Ltd (TWPBJ)	Subsidiaries
Acer Cloud Technology(Chongqing) Ltd. (ACTCQ)	Subsidiaries
Acer Being Communication Inc. (ABC)	Subsidiaries
Acer Being Signage Inc. (ABST)	Subsidiaries
Acer Being Signage GmbH (ABSG)	Subsidiaries
Beijing Altos Computing Ltd. (BJAC)	Subsidiaries
Altos Computing (India) Private Limited (ALIN)	Subsidiaries
Altos Computing (Thailand) Co., Ltd. (ALTH)	Subsidiaries
Xplova (Shanghai) Ltd. (XPLSH)	Subsidiaries
Acer Cyber Security Incorporated (ACSI)	Subsidiaries
ACSI Cyber Security Academy Inc. (ACAD)	Subsidiaries
Acer e-Enabling Data Center Incorporated (EDC)	Subsidiaries
Acer China Venture Corp (ACVC)	Subsidiaries
Acer China Venture Partnership (ACVP)	Subsidiaries
Sertec (Beijing) Ltd. (SEB)	Subsidiaries
StarVR Corporation (ASBZ)	Subsidiaries
StarVR Europe SA (VRE)	Subsidiaries
AOPEN Inc. (AOI)	Subsidiaries
AOPEN America Inc.(AOA)	Subsidiaries
AOPEN Computer B.V.(AOE)	Subsidiaries
AOPEN Technology Inc.(AOTH)	Subsidiaries
AOPEN Japan Inc.(AOJ)	Subsidiaries
Aopen SmartVision Incorporated (AOSV)	Subsidiaries
Heartware Alliance and Integration Limited (HTW)	Subsidiaries
AOPEN Global Solutons Pty Ltd.(AOGS)	Subsidiaries
AOPEN SmartView Incorporated (AOSD)	Subsidiaries
Great Connection LTD.(GCL)	Subsidiaries
AOPEN International (ShangHai) Co., Ltd (AOC)	Subsidiaries
AOPEN Information Products (Zhongshan) Inc. (AOZ)	Subsidiaries
AOPEN Australia & New Zealand Pty Ltd (AOAU)	Subsidiaries
Bluechip Infotech Pty Ltd. (Bluechip)	Subsidiaries

(Continued)

67

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party Relationship with the Company Bluechip Infotech Incorporated (BLI) Subsidiaries Mia Telecomms Pty Limited (MIA) Subsidiaries Dingo Tech Pty Ltd. (DTP) Subsidiaries Bluechip Infotech (NZ) Limited (BLNZ) Subsidiaries Digital Networks Australia Pty Ltd. (DNA) Subsidiaries Ingeniq Pty Ltd (IGP) Subsidiaries Soft Solutions Limited (SSL) Subsidiaries Highpoint Service Network Corporation (HSNC) Subsidiaries Highpoint Service Network (Thailand) Co., Ltd (HSNT) Subsidiaries Highpoint Service Network Vietnam Company Limited Subsidiaries (HSNV) PT HSN Tech Indonesia (HSNI) Subsidiaries HighPoint Service Network Sdn Bhd (HSN) Subsidiaries Highpoint Services Network Philippines, Inc. (HSNP) Subsidiaries AcerPure Inc. (API) Subsidiaries Acer Property Development Inc. (APDI) Subsidiaries Aspire Service & Development Inc. (ASDI) Subsidiaries Acer Asset Management Incorporated (AAM) Subsidiaries Acer Beverage Incorporated (ABI) Subsidiaries Smart Frequency Technology Inc. (SFT) Joint venture Aegis Semiconductor Technology Inc. (ATI) Associates, liquidated on August 26, 2021 GrandPad Inc. (GrandPAD) Associates Piovision International Inc. (HPT) Associates ECOM Software Inc. (ECS) Associates Kbest Technology Inc. (KBest) Associates Erics Sports Marketing Inc. (Erics) The entity’ s chairman is the firstdegree relatives of one of the key management of the Company Acer Foundation Substantive related party Satoro Taiwan Inc. The entity’s chairman is the Company's director Mu-Jin Investments Co., Ltd. The entity’s director is the Company's chairman AiSails Power Inc. The entity’s chairman is the Company's director (On December 14, 2022, the chairman of AiSails Power Inc. resigned, AiSails Power Inc. was no longer a related party of the Company since then)

(Continued)

68

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
Mu-Shi Investments Co., Ltd.	The entity’s director is the
	Company's chairman

• (Note1) On December 31, 2022, AGM acquired control over WKC and its subsidiaries, as a result, WKC and its subsidiaries became related parties of the Company.

• (Note2) GadgetTek Inc. (GTI), one of subsidiaries of the Company, has been merged into Acer Gadget Inc. in the second quater of 2021.

• (b) Significant related-party transactions

• (i) Revenue

The amounts of significant sales to related parties were as follows:

Subsidiaries AEG AAC Others Associates Joint venture Other related parties	2022 $ 62,204,606 39,345,499 48,684,621 58,894 7 764 $ 150,294,391	2021
		93,323,424 73,481,903 58,522,673 128,715 - 89
		225,456,804

The sales prices and trade term with related parties depend on the economic environment and market competition, and are not comparable to those with third-party customers.

• (ii) Purchases

The amounts of significant purchases from related parties were as follows:

Subsidiaries	2022 $ 4,133,492	2021
		3,274,588

The purchase price with related parties are not comparable to the purchase price with thirdparty vendors as the specifications of products are different.

(Continued)

69

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(iii) Operating costs and expenses

The operating costs and expenses related to after-sale services for IT products, product development and design as well as business continuity plan services and the donation to related parties were as follows:

Accounts Cost of revenue Operating expense Operating expense Operating expense	Related-party categories 2022 Subsidiaries $ 461,334 Subsidiaries 208,974 Associates 1,745 Other related parties 13,835 $ 685,888	2021
		400,493 85,976 1,745 -
		488,214

(iv) Lease

The Company leased investment property and rental office premises to its related parties. The － related rental income was reported in “ other operating income and expenses net” and summarized as follows:

Subsidiaries: ASDI AEB Others Associates Joint venture Other related parties	2022 $ 58,745 17,890 18,422 212 211 127 $ 95,607	2021
		38,434 15,619 11,047 2,623 2,584 83
		70,390

(v) Service income

The service income related to the system maintenance service provided to related parties was included in “ other gains and losses ” and was summarized as follows:

Subsidiaries Associates Joint venture Other related parties	2022 $ 30,143 48 3,634 123 $ 33,948	2021
		39,187 48 3,223 165
		42,623

(Continued)

70

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(vi) Reorganization under common control

In view of continuously optimizing group resourses integration and maximizing operational synergies, the Company sold 44,462 thousand shares of EDC’s common stock to ACSI for a consideration of $475,747 in January 2022. In addition, in order to optimize the subsidiaries’ investment structure, the Company acquired 30,969 thousand shares of Acer Sales and Services SDN BHD’s common stock and 3,985 thousand shares of Acer Computer (Singapore) Pte. Ltd.’s common stock from Acer Holdings International, Incorporated for considerations of $1,193,559 and $171,997, respectively, in December 2022. The aforementioned transactions are classified as reorganization under common control, and therefore, the difference between the considerations and carrying amounts of subsidiaries disposed was recognized in capital surplus.

(vii) Loans to related parties

The actual drawdown amounts were as follows:

Subsidiaries: AFE ITS MPS ALT Interest rate	December 31, 2022 $ 373,931 410,000 76,000 132,000 $ 991,931 0.98%-2.75%	December 31, 2021
		330,294 110,000 56,000 78,000
		574,294
		0.65%-0.85%

Interest income related to loans to subsidiaries in 2022 and 2021 was $9,996 and $2,759, respectively.

(viii) Borrowings from related parties

The borrowings from related parties were as follows:

Subsidiaries: ADSC AGT CCI Others Interest rate	December 31, 2022 $ 90,000 - - - $ 90,000 0.93%	December 31, 2021
		100,000 70,000 100,000 45,000
		315,000
		0.60%

Interest expenses related to borrowings from subsidiaries in 2022 and 2021 were $1,744 and $3,042, respectively.

(Continued)

71

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (ix) Payables related to defined benefit liabilities due to personnel transfer to subsidiaries

The net defined benefit liabilities have been transferred while certain employees transferred from the Company to AEB, EDC, HSNC and other subsidiaries. Related payables were included in “other payables to related parties” and “long-term payable to related parties”.

• (x) Receivables from related parties

Accounts Notes and accounts receivable from related parties Notes and accounts receivable from related parties Note and accounts receivable from related parties Other receivables from related parties Other receivables from related parties (financing) Other receivables from related parties Other receivables from related parties Other receivables from related parties	Related-party categories December 31, 2022 Subsidiaries: AAC $ 2,008,759 AEG 607,349 AIL 3,491,157 Others 6,598,605 Associates 37,557 Other related parties 33 Subtotal 12,743,460 Subsidiaries 56,772 Subsidiaries 991,931 Associates - Joint venture 667 Other related parties 129 Subtotal 1,049,499 $ 13,792,959	December 31, 2021
		15,257,348 6,603,418 5,039,862 10,617,881 - 16
		37,518,525
		89,811 574,294 10 294 173
		664,582
		38,183,107

(Continued)

72

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(xi) Payables to related parties

Accounts Accounts payable to related parties Accounts payable to related parties Other payables to related parties Other payables to related parties Other payables to related parties (financing) Long-term payable to related parties	Related party categories Subsidiaries Associates Subtotal Subsidiaries Other related parties Subsidiaries Subtotal Subsidiaries	December 31, 2022 $ 758,286 - 758,286 2,790,984 15,000 90,000 2,895,984 13,134 $ 3,667,404	December 31, 2021
			628,776 89
			628,865
			190,675 12,500 315,000
			518,175
			14,594
			1,161,634

• (xii) Guarantees and endorsements provided to related parties

As of December 31, 2022 and 2021, the balances of guarantees and endorsements provided to subsidiaries were $22,564,546 and $21,183,939, respectively, and the amounts actually drawn were $4,392,591 and $4,285,862, respectively.

• (c) Compensation for key management personnel

Compensation for key management personnel
Short-term employee benefits Post-employment benefits	2022 $ 185,428 3,716 $ 189,144	2021
		283,252 3,187
		286,439

8. Pledged assets

－ The carrying values of pledged assets (reported under other financial assets non-current) were as follows:

follows:
Assets	Pledged to secure Contract bidding, refundable deposits, and project fulfillment guarantee	December 31, 2022 $ 148,466	December 31, 2021
Cash in bank and time deposits			160,566

(Continued)

73

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

9. Significant commitments and contingencies

• (a) The Company has entered into software and royalty license agreements with Microsoft, IBM, and other companies. The Company has fulfilled its obligations according to the contracts.

• (b) In the regular course of its business from, the Company received letter of notice from third parties asserting that the Company has infringed certain patents and demanded that it should obtain certain patent licenses. Although the Company does not expect that the outcome of any of these legal proceedings (individually or collectively) will have a material adverse effect on its business operations and finance, the litigation is inherently unpredictable. Therefore, the Company may be involved in a future lawsuit or enter into settlements of claims that could adversely affect its operating results or cash flows within a particular period.

• (c) As of December 31, 2022, there were no outstanding stand-by letters of credit issued for bidding or contracts. As of December 31, 2021, the Company had outstanding stand-by letters of credit provided by the banks totaling $6,720 for purposes of bids and contracts.

• (d) As of December 31, 2022 and 2021, the Company had issued promissory notes amounting to $36,590,060 and $35,247,050, respectively, as collateral for obtaining credit facilities from financial institutions.

10. Significant loss from disaster: None

11. Significant subsequent events: None

12. Others

A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

follows:
	2022				2021
	Cost of revenue	Operating expenses	Total		Cost of revenue	Operating expenses		Total
Employee benefits: Salaries Insurance Pension Remuneration of directors Others Depreciation Amortization	- - - - - - 1,174	2,840,106 179,606 104,083 31,800 172,870 144,017 22,097	2,840,106 179,606 104,083 31,800 172,870 144,017 23,271		- - - - - - 12,068	3,753,103 174,644 119,812 42,819 207,345 140,120 12,525		3,753,103 174,644 119,812 42,819 207,345 140,120 24,593
Employees Directors not in concurrent employment Average employee benefits Average employee salaries Adjustment of average employee salaries							2021 1,662
							4
							2,566
							2,264

(Continued)

74

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company’s compensation policy, including directors, managers, and employees, is as follows:

The compensation of directors and managers is evaluated and reviewed by Compensation Committee periodically. The compensation of employees is determined by participating in salary surveys every year and reviewing salary level regularly to provide competitive compensation to employees.

13. Additional disclosures

• (a) Information on significant transactions:

• (i) Financing provided to other parties: See Table 1 attached;

• (ii) Guarantees and endorsements provided to other parties: See Table 2 attached;

• (iii) Marketable securities held at reporting date (excluding investments in subsidiaries, associates, and jointly controlled entities): See Table 3 attached;

• (iv) Marketable securities for which the accumulated purchase or sale amounts for the period exceed $300 million or 20% of the paid-in capital: See Table 4 attached;

• (v) Acquisition of real estate at costs which exceeds $300 million or 20% of the paid-in capital: None;

• (vi) Disposal of real estate at prices which exceeds $300 million or 20% of the paid-in capital: None;

• (vii) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital: See Table 5 attached;

• (viii) Receivables from related parties which exceed $100 million or 20% of the paid-in capital: See Table 6 attached;

• (ix) Information about derivative instruments transactions: See notes 6(b);

• (b) Information on investees: See Table 7 attached;

• (c) Information on investment in Mainland China:

• (i) The names of investees in Mainland China, the main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investees, share of profits (losses) of investees, ending balance, amount received as earnings distributions from the investment, and limitation on investment: See Table 8 attached;

• (ii) Significant direct or indirect transactions with investee companies, the prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in Mainland China on financial reports: For the Company’ s significant direct or indirect transactions (eliminated when compiling the consolidated financial statements) with investee companies in Mainland China for the year ended December 31, 2022, please refer to “Information on significant transactions” above.

(Continued)

75

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF Fund under the custody of Taishin Bank	188,317,000	% 6.17

• Note: (1) The information of major shareholders in this table was calculated by the Taiwan Depository & Clearing Corporation on the last business day at the end of each quarter, based on the Company’ s common shares (including treasury stock) without physical registration for which the major shareholders own more than 5% of the total shares. The total common shares stated in the accompanying consolidated financial statements and the actual number of shares delivered without physical registration may vary due to the different use of calculation basis.

• (2) If the shares are entrusted, the above information regarding such shares will be revealed by each trustor of individual trust account. The shareholders holding more than 10% of the total shares of the company should declare insider’s equity according to Securities and Exchange Act. Such shareholdings include self-held shares plus the shares that are delivered to the trust and have the right to exercise decision-making over the trust property, and so on. Please refer to the Market Observation Post System for information on insider shareholding declarations.

14. Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2022.

Acer Incorporated Financing provided to other parties For the year ended December 31, 2022

Table 1

Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2022
													(Amounts in Thousands of New Taiwan Dollars)
No.	Financing Company	Counterparty	Financial Statement Account (Note 5)	Related Party	Maximum Balance for the Period	Ending Balance	Amout Actually Drawn	Interest Rate	Nature of Financing (Note 1)	Transaction Amounts	Reasons for Short- term Financing	Loss Allowance	Collateral		Financing Limit for Each Borrowing Company (Note 2)	Financing Company's Total Financing Amount Limits (Note 2)
													Item	Value
0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 2 2 2 2 2 2 2 2 2 2 3 4 4 4	The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company APDI ABH ABH ABH ABH ABH ABH ABH ABH ABH ABH ABH CCI ADSC ADSC ADSC	APDI CCI ADSC ASDI AGT API MPS MPS EDC ALT AGM ITS AFE ABH The Company ABST ABST ABST ABSG ABC ABC ABC ABC AIC APDI The Company The Company The Company Bluechip Bluechip	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from relatedparties	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	30,000 4,000 16,000 35,000 100,000 25,000 250,000 250,000 800,000 405,000 295,000 900,000 744,497 1,000 30,000 209,000 209,000 209,000 134,731 58,000 58,000 58,000 58,000 70,000 80,000 100,000 100,000 190,000 86,529 86,529	- - 1,000 - - - 100,000 50,000 400,000 300,000 - 600,000 373,931 1,000 - 35,000 - 66,000 68,211 - 14,000 10,000 10,000 40,000 80,000 100,000 - 90,000 37,658 23,013	- - - - - - 76,000 - - 132,000 - 410,000 373,931 - - 35,000 - 66,000 68,211 - 14,000 10,000 7,500 20,000 74,000 - - 90,000 37,658 23,013	0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 6,594,746 15,467 195,478 195,478 195,478 195,478 195,478 195,478 195,478 195,478 195,478 195,478 781,911 155,719 507,215 126,804 126,804	32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 32,973,729 15,467 781,911 781,911 781,911 781,911 781,911 781,911 781,911 781,911 781,911 781,911 781,911 155,719 507,215 507,215 507,215

� 76 �

No.	Financing Company	Counterparty	Financial Statement Account (Note 5)	Related Party	Maximum Balance for the Period	Ending Balance	Amout Actually Drawn	Interest Rate	Nature of Financing (Note 1)	Transaction Amounts	Reasons for Short- term Financing	Loss Allowance	Collateral	Collateral	Financing Limit for Each Borrowing Company (Note 2)	Financing Company's Total Financing Amount Limits (Note 2)
													Item	Value
5 5 6 7 8 9 10 11 12 13 13 14 15 15 16 16 16 17 17 18 18 18 18 19	ASDI ASDI AGT API AIZS GWI AAH MPS EDC Bluechip Bluechip AEG AST AST WLII WLII WLII PGL PGL PAL PAL PAL PAL WKHK	The Company APDI The Company The Company ACCQ AAC AAC The Company The Company BLI DNA AEH ASTA ISU PAM CRI PGL CRI PAM CRI PAM PGL PST WKTW	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from relatedparties	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	35,000 38,000 185,000 25,000 428,063 866,596 9,109,671 1,000 50,000 15,387 34,878 98,619 90,000 60,000 74,315 190,458 84,063 16,945 16,945 9,634 9,634 9,634 9,634 45,000	- - - - 215,890 446,801 4,652,263 - - 9,213 - 98,619 90,000 60,000 - 153,540 - - - - - - - 45,000	- - - - 215,890 446,801 4,621,554 - - 7,370 - 98,619 21,496 - - 153,540 - - - - - - - 18,438	0%~4% 0%~4% 0.6% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 1.3% - 1%~1.2% 1.2%~5.5% 1%~1.2% 1.2~1.5% 1.2~1.5% 1.2~1.5% 1.2~1.5% 1.2~1.5% 1.2~1.5% -	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - - - - - - - - - - -	Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - - - - - - - - - - - - - - - - - - - -	None None None None None None None None None None None None None None None None None None None None None None None None	- - - - - - - - - - - - - - - - - - - - - - - -	33,049 33,049 420,010 119,006 266,340 28,625,365 35,643,772 8,173 225,673 77,784 77,784 1,910,388 69,951 69,951 202,585 202,585 202,585 (Note 3) (Note 3) 3,926 3,926 3,926 3,926 82,861	33,049 33,049 420,010 119,006 266,340 28,625,365 35,643,772 32,691 225,673 77,784 77,784 3,820,776 279,804 279,804 810,339 810,339 810,339 (Note 3) (Note 3) 15,704 15,704 15,704 15,704 82,861

� 77 �

Note	1:	Nature of Financing:
		Type 2: Short-term financing purpose
Note	2:	1. The aggregate financing amount shall not exceed 50% of net worth of the Company, within which the short-term financing amount shall not exceed 20% of net worth of the Company.
		1-1. For an entity which the Company owns less than 50% of its outstanding common shares, the individual financing amounts shall not exceed lower of 5% of net worth of the Company and 40% of net worth of the entity.
		1-2. For an entity which the Company owns more than 50% of its outstanding common shares, the individual financing amounts shall not exceed 10% of net worth of the Company.
		1-3. When a subsidiary who provides financing to other parties is directly or indirectly wholly owned by the Company, the aforementioned limit of aggregate amount and individual financing amount is applied.
		2. For AIZS, the aggregate financing amount shall not exceed 120% of net worth of AIZS.
		3. The financing limits of GWI and AAH were as follows:
		3-1. The individual financing amounts shall not exceed higher of 20% of net worth of the entity or 50% of net worth of the ultimate parent company.
		3-2. For an entity which the ultimate parent company wholly owns directly or indirectly, the individual financing amounts shall not exceed 120% of net worth of the entity.
		4. The financing limits of APDI, ABH, CCI, ADSC, API and EDC were as follows:
		4-1. The aggregate financing amount shall not exceed 40% of net worth of the entities listed above.
		4-2. The individual financing amounts to the ultimate parent company shall not exceed 40% of net worth of the entities listed above.
		5. For an entity which the financing company owns more than 50% of its outstanding common shares or is fellow subsidiary of the same group, the individual financing amounts of ABH and ADSC
		shall not exceed 10% of net worth of ABH and ADSC.
		6. The financing limit of ASDI was as follows:
		6-1. The aggregate financing amount shall not exceed 40% of net worth of ASDI.
		6-2. The individual financing amounts to the ultimate parent company and its related parties shall not exceed 40% of net worth of ASDI.
		7. Both of the aggregate financing amount and the individual financing amounts of Bluechip shall not exceed 20% of net worth of Bluechip.
		8. The financing limits of AST, AGT, MPS, WLII, PGL and PAL were as follows:
		8-1. The aggregate financing amount shall not exceed 40% of net worth of the entities listed above.
		8-2. The individual financing amounts shall not exceed 10% of net worth of the entities listed above.
		8-3.Regarding the financing provided by AST to ASTA, since the financing contract with a financing limit of $30,000 will expire in January 2023, AST's Board of Directors approved the financing of $60,000 to ASTA due to its operating requirements.
		However, because of the early meeting of the Board of Directors, the ending balance of the financing provided by AST to ASTA was repetitively calculated.
		9. The financing limit of AEG was as follows:
		8-1. The aggregate financing amount shall not exceed 100% of net worth of the entities listed above.
		8-2. The individual financing amounts shall not exceed 50% of net worth of the entities listed above.
		10. For the financing limit of WKHK, both of the aggregate financing amount and the individual financing amounts shall not exceed 100% of its net worth.
Note	3:	PGL was liquidated during 2022.
Note	4:	Net worth of the Company and subsidiaries listed above are the most recent audited.
Note	5:	The above transactions are eliminated when preparing the consolidated financial statements.

� 78 �

Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022

Table 2

Table 2	Table 2	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2022
		(Amounts in Thousands of New Taiwan Dollars)
No.	Endorsement/ Guarantee Provider	Guaranteed Party		Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Note 2 to Note 7)	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount Allowable (Note 2 to Note 7)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship (Note 1)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 2 3 3 3 4 4 4 5	The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company AAC AOI AOI AST AST AST WLII WLII WLII PGL	AJC ATH Acer Asia Pacific subsidiaries AEG Acer EMEA subsidiaries ACN/ACD/ACW/AFN ATB Acer Pan America subsidiaries AMEX Acer Greater China subsidiaries SMA ACA AIL ACCN/ACCQ/BJAC ABSG ITS ALT HSNC HSNP HSNT HSNC/HSNI/HSNP/HSNT MPS EDC AAC AGM HSNI API AGT HSNV CPY ALTH ALIN ASC AOSD AOC ISU ASTS ASTA CRI PAM PST CRI	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 4 2 2 2 2 2 2 2 2 2	13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 13,189,491 2,519,031 254,729 254,729 139,902 139,902 139,902 405,169 405,169 405,169 (Note 8)	730,983 170,713 2,254,700 289,681 1,127,350 12,233 858,660 5,475,700 289,890 1,771,550 104,591 177,155 3,248,771 902,902 170,588 402,100 400,000 224,480 58,960 76,903 117,920 152,533 2,898,900 1,127,350 1,529,020 117,920 150,000 344,510 29,480 16,436 48,315 113,849 19,326 3,221 177,155 60,000 35,611 128,840 266,756 337,333 293,834 9,523	702,593 162,752 2,149,560 288,911 1,074,780 11,779 - 5,220,360 276,372 1,688,940 104,591 168,894 3,181,039 890,268 169,977 402,100 400,000 - - - - 152,204 2,763,720 1,074,780 1,407,080 - 100,000 - - 16,436 46,062 111,348 18,425 - 168,894 60,000 35,611 122,832 142,844 180,935 168,238 -	- - 31,164 288,911 23,999 11,779 - 2,303 - - 2,087 168,894 914,494 - 16,436 102,159 - - - - - 52,204 1,055,808 1,067,377 638,540 - - - - 16,436 - - 18,425 - - - - - - - 25,251 -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	1.07% 0.25% 3.26% 0.44% 1.63% 0.02% 0.00% 7.92% 0.42% 2.56% 0.16% 0.26% 4.82% 1.35% 0.26% 0.61% 0.61% 0.00% 0.00% 0.00% 0.00% 0.23% 4.19% 1.63% 2.13% 0.00% 0.15% 0.00% 0.00% 0.02% 0.07% 0.17% 0.73% 0.00% 19.89% 8.58% 5.09% 17.56% 7.05% 8.93% 8.30% (Note 8)	65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 65,947,457 2,519,031 849,095 849,095 349,755 349,755 349,755 1,012,923 1,012,923 1,012,923 (Note 8)	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y		Y Y Y Y Y

� 79 �

No.	Endorsement/ Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Note 2 to Note 7)	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount Allowable (Note 2 to Note 7)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship (Note 1)
6 6 6 6 6	HSNC HSNC HSNC HSNC HSNC	HSNT HSNI HSNV HSNP HSN	2 2 2 2 2	39,867 39,867 39,867 39,867 39,867	32,210 32,210 32,210 32,210 32,210	30,708 30,708 30,708 30,708 30,708	14,146 888 - - -	- - - - -	15.41% 15.41% 15.41% 15.41% 15.41%	199,334 199,334 199,334 199,334 199,334

• Note 1: Relationships between the endorsement/guarantee provider and the guaranteed party:

• Type 2: an entity directly or indirectly owned by the Company over 50%

• Type 4: between entities directly or indirectly owned by the Company over 90%

• Note 2: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of the Company. The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of the Company.

• Note 3: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of AOI.

• The endorsement/guarantee provided to individual guarantee party shall not exceed 30% of the most recent audited net worth of AOI. AOSD was dissolved due to merger on December 15, 2021, and the liquidation was completed on January 28, 2022.

• Note 4: The aggregate endorsement/guarantee amount provided shall not exceed 20% of the most recent audited net worth of AAC. The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of AAC.

• Note 5: The aggregate endorsement/guarantee amount provided shall not exceed 50% of the most recent audited net worth of AST. The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of AST.

• Note 6: The aggregate endorsement/guarantee amount provided limits of WLII and its subsidiaries were as follows:

• The aggregate endorsement/guarantee amount provided shall not exceed 50% of the most recent audited net worth of the entities listed above. The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of the entities listed above. The aggregate endorsement/guarantee amount provided by WLII and its subsidiaries shall not exceed 50% of the most recent audited net worth of WLII. The endorsement/guarantee provided to individual guarantee party by WLII and its subsidiaries shall not exceed 20% of the most recent audited net worth of WLII.

• Note 7: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of HSNC.

• The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of HSNC.

• Note 8: PGL was liquidated during 2022.

� 80 �

Acer Incorporated

Marketable securities held at reporting date

(Excluding investments in subsidiaries, associates, and joint controlled entities) December 31, 2022

Table 3

Table 3	Table 3	Table 3	Table 3
				(Amounts in Thousands of New Taiwan Dollars / Shares)
Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	Ending Balance				Maximum ownership during 2022		Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Stock: Starbreeze Stock: Qisda Stock: WPG Holdings Stock: Wistron Preferred Stock B: SKFHC Stock: FocalTech Preferred stock B: CTBC Preferred stock B: CTFH Preferred stock A: CTFH Preferred stock B: FBFH Preferred stock A: FBFH Preferred stock A: UBOT Preferred stock C: FBFH Preferred stock E: TSFH Stock: Apacer Stock: Pell Bio-med Technology Co., Ltd. Stock: CellMax Life Inc. Stock: CT Ambi Investment and Consulting Inc. Stock: Fortune Electric	- - - - - - - - - - - - - - - - - - -	Financial assets measured at fair value through profit or loss — current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current	572 89,516 4,012 54,816 6,830 8,733 855 1,177 260 991 254 30 7,000 335 11,000 2,400 600 2,000 2,500	2,661 2,519,867 192,956 1,611,590 245,197 511,735 50,701 64,265 14,716 56,982 15,342 1,551 385,700 17,286 455,400 120,000 17,421 20,000 80,000	0.10% 4.55% 0.24% 1.89% 3.08% 4.04% 0.26% 0.17% 0.03% 0.15% 0.04% 0.02% 2.10% 0.07% 8.97% 5.41% 0.19% 15.50% 8.83%	2,661 2,519,867 192,956 1,611,590 245,197 511,735 50,701 64,265 14,716 56,982 15,342 1,551 385,700 17,286 455,400 120,000 17,421 20,000 80,000	572 89,516 4,012 54,816 6,830 8,733 855 1,177 260 991 254 30 7,000 335 11,000 2,400 600 2,000 2,500	0.10% 4.55% 0.24% 1.89% 3.08% 4.04% 0.26% 0.17% 0.03% 0.15% 0.04% 0.02% 2.10% 0.07% 8.97% 7.19% 1.02% 15.50% 8.83%	Note 1 Note 1 Note 1 Note 2 Note 1 Note 2 Note 2 Note 3 Note 4

� 81 �

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	Ending Balance	Ending Balance	Ending Balance	Ending Balance	Maximum ownership during 2022	Maximum ownership during 2022	Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
The Company The Company The Company The Company The Company The Company The Company The Company ADSC ADSC ADSC ASCBVI ASCBVI ASCBVI ASCBVI ASCBVI AGT ABST ACTCQ ACTCQ AHN AEB	Stock: Starbit Stock: GreenHarvest USD Fixed Rate Callable Note (2022/2/23) USD Fixed Rate Callable Note (2022/4/1) USD Fixed Rate Callable Note (2022/5/13) HSBC Holdings PLC Bond CREDIT AGRICOLE SA Corporate Bond UBS GROUP AG Corporate Bond Stock: Wistron Stock: Benepet Biomedical Co., Ltd. 21st Century Technology Co., Ltd ID5 Fund L.P. Stock: Trutag Stock: Gorilla Stock: Locix Stock: BoniO Stock: RoyalTek Stock: PilotTV Holdings Equity of Thinputer Technology Corporation Equity of Shenmou Technology (Shenzhen) EUR Term Liquidity Fund Preferred Stock B: SKFHC	- - - - - - - - - - - - - - - - - - - - - -	Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at amortized cost�non- current Financial assets measured at amortized cost�non- current Financial assets measured at amortized cost�non- current Financial assets measured at amortized cost�non- current Financial assets measured at amortized cost�non- current Financial assets measured at amortized cost�non- current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through profit or loss — current Financial assets measured at fair value through other comprehensive income — non-current	2,920 1,111 - - - - - - 13,046 322 478 3,800 1,346 910 1,000 463 1,015 2,676 - - - 666	35,040 49,995 307,080 153,540 153,540 60,919 61,556 61,147 383,559 12,108 126,414 160,937 6,633 61,416 - 122,832 22,848 57,462 8,566 420 771,292 23,909	15.31% 8.40% - - - - - - 0.45% 18.92% 0.86% 19.39% 0.33% 1.21% 4.05% 12.20% 2.01% 19.18% 13.79% 19.99% 0.00% 0.30%	35,040 49,995 307,080 153,540 153,540 60,919 61,556 61,147 383,559 12,108 126,414 160,937 6,633 61,416 - 122,832 22,848 57,462 8,566 420 771,292 23,909	2,920 1,111 - - - - - - 13,046 322 478 3,800 1,346 910 1,000 463 1,015 2,676 - - - 666	15.31% 8.40% - - - - - - 0.45% 18.92% 0.94% 19.39% 0.33% 1.90% 4.05% 12.20% 2.01% 19.18% 13.79% 19.99% 0.00% 0.30%	Note 1

� 82 �

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	Ending Balance	Ending Balance	Ending Balance	Ending Balance	Maximum ownership during 2022	Maximum ownership during 2022	Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
AEB ACSI AOI AOI AST AST AST AST AST	Stock: Ambi Arts Preferred Stock B: SKFHC Stock: MPL Preferred stock C: FBFH Preferred stock C: FBFH Stock: Simple Mart Retail Preferred stock A: FBFH Preferred stock E: TSFH Preferred Stock B: SKFHC	- - - - - - - - -	Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current	180 666 25 200 400 300 20 952 549	983 23,909 9,981 11,020 22,040 13,140 1,208 49,123 19,709	18.00% 0.30% 15.06% 0.06% 0.12% 0.44% 0.003% 0.19% 0.25%	983 23,909 9,981 11,020 22,040 13,140 1,208 49,123 19,709	180 666 25 200 400 300 20 952 549	18.00% 0.30% 15.06% 0.60% 0.12% 0.44% 0.003% 0.19% 0.25%	Note 1 Note 3 Note 3 Note 2 Note 4 Note 1

Note 1: The stocks of SKFHC�CTBC�CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.�CTBC�CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.CTBC�CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.�CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B. Note 2: The stocks of CTFH�FBFH�UBOT are prefered stock A. The percentage of ownership listed above is the percentage of ownership of preferred stock A. Note 3: The stocks of FBFH are prefered stock C. The percentage of ownership listed above is the percentage of ownership of preferred stock C. Note 4:

The stocks of SKFHC�CTBC�CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.�CTBC�CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.CTBC�CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.�CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.CTFH�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.�FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.FBFH are prefered stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B.

The stocks of TSFH are prefered stock E. The percentage of ownership listed above is the percentage of ownership of preferred stock E.

� 83 �

Acer Incorporated

Marketable securities for which the accumulated purchase or sale amounts for the period exceed NT$300 million or 20% of the paid-in capital For the year ended December 31, 2022

Table 4

Table 4	Table 4	Table 4	Table 4	Table 4
					(Amounts in Thousands of New Taiwan Dollars / Shares)
Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance		Acquisitions		Disposal				Ending Balance
					Shares/ Units (in thousands)	Amount	Shares/ Units (in thousands)	Amount	Shares/ Units (in thousands)	Amount	Carrying Value	Gain (Loss) on Disposal	Shares/ Units (in thousands)	Amount
ACCN ACCQ The Company ACSI AGM WLII	Fubon Bank (China) CNY SDRMBC 16030000 Fubon Bank (China) CNY SDRMBC 16030000 Acer e-Enabling Data Center Incorporated Acer e-Enabling Data Center Incorporated WKC PAM	Financial assets measured at fair value through profit or loss� current Financial assets measured at fair value through profit or loss� current Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	Fubon Bank (China) Co., Ltd. Fubon Bank (China) Co., Ltd. Acer Cyber Security Incorporated The Company WKC and its shareholders (Note 2)	None None Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	- - 44,462 - - -	- - 468,820 - - -	788,000 4,127,000 - 44,462 9,589 14,340	3,518,675 18,347,417 - 475,748 641,544 628,483 (Note 2)	788,000 4,127,000 44,462 - - -	3,543,359 18,430,956 475,748 - - -	3,518,675 18,347,417 468,820 - - -	24,684 83,539 6,928 (Note 1) - - -	- - - 44,462 9,589 14,340	- - - 564,183 (Note 3) 641,544 591,945 (Note 3)

• Note 1: Because ACSI’s acquisition of 100% equity ownership of EDC from the Company was classfied as reorganization under common control, the Company recognized such amount in capital surplus.

• Note 2: WLII acquired the shares of PAM through its reorganization and subscription its cash capital increase.

• Note 3: Ending balances include share of profits of subsidiaries, exchange differences on translation of foreign operations, amortization of customer relationships, capital surplus subscripted disproportionately to the current ownership percentage and the adjustment of retained earnings.

� 84 �

Acer Incorporated Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2022

Table 5

Table 5	Table 5	Table 5	For the year ended December 31, 2022	For the year ended December 31, 2022	For the year ended December 31, 2022	For the year ended December 31, 2022	For the year ended December 31, 2022	For the year ended December 31, 2022	For the year ended December 31, 2022	For the year ended December 31, 2022	For the year ended December 31, 2022
			(Amounts in Thousands of New Taiwan Dollars)
Company Name	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others(Note 1)		Notes/Accounts Receivable or (Payable)		Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company WELL ALT	AAC ACA ACCQ ACNZ ACS AEG AFE AIL AIN AJC AMI APHI ASC ASSB ATH AVN WLII APHI API AVN ALT AEB AOI AGT WLII The Company	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales)	(39,345,499) (5,346,411) (12,460,328) (612,267) (1,760,586) (62,204,606) (533,177) (7,928,004) (4,244,333) (1,493,314) (2,676,504) (2,389,336) (134,189) (2,365,200) (4,489,999) (142,574) (1,845,817) 204,754 102,754 118,420 577,442 157,280 2,240,569 952,666 510,187 (577,442)	(23.24)% (3.16)% (7.36)% (0.36)% (1.04)% (36.75)% (0.31)% (4.68)% (2.51)% (0.88)% (1.58)% (1.41)% (0.08)% (1.40)% (2.65)% (0.08)% (1.09)% 0.13% 0.07% 0.08% 0.37% 0.10% 1.44% 0.61% 100.00% (65.51)%	OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA150 OA90 OA60 OA90 OA60 OA60 OA60 OA60 OA60 EM45 OA60 OA60 OA60 OA60 EM30 EM60 OA60 EM45 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - -	2,008,759 1,251,180 369,683 149,370 107,310 607,349 82,193 3,491,157 995,444 970,810 555,097 532,357 7,639 535,730 636,650 - 262,434 (59,587) (16,182) (30,868) (86,429) (24,289) (385,516) (173,919) (42,376) 86,429	12.31% 7.67% 2.27% 0.92% 0.66% 3.72% 0.50% 21.40% 6.10% 5.95% 3.40% 3.26% 0.05% 3.28% 3.90% - 1.61% (0.27)% (0.07)% (0.14)% (0.40)% (0.11)% (1.76)% (0.80)% (95.15)% 47.47%

� 85 �

Company Name	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others(Note 1)	Transactions with Terms Different from Others(Note 1)	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
AEB AEB AGM AOI AOI AOI AGT WLII WLII WLII PAM AAC AAC AAC AAC ACA ACA ACCN ACCQ ACCQ ACCQ ACF ACF ACF ACG ACG ACG ACG ACH ACNZ ACS ACZ ACZ ACZ AEG AEG	The Company WLII AGPH AOA AOE The Company The Company WELL AEB The Company CRI AMEX ASC ATB The Company Bluechip The Company ACCQ ACCN AOC The Company AEG AEG APX AEG AEG APL APX AEG The Company The Company AEG ASIN APX ACF ACG	Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary	(Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) Purchases (Sales) Purchases (Sales) Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) (Sales)	(157,280) 249,242 297,781 (168,493) (404,061) (2,240,569) (952,666) (510,187) (249,242) 1,845,817 (876,523) (1,831,758) (728,672) (271,139) 39,345,499 (162,433) 5,346,411 (353,145) 353,145 274,431 12,460,328 (345,788) 7,995,951 160,511 (573,227) 18,376,210 141,242 231,546 3,824,276 612,267 1,760,586 (123,247) (230,913) 177,290 (7,995,951) (18,376,210)	(2.19)% 4.10% (12.78)% (5.82)% (13.96)% (77.44)% (65.30)% (2.81)% (1.37)% 10.80% (40.00)% (3.18)% (1.27)% (0.47)% 92.03% (2.10)% 86.95% (70.07)% 2.35% 1.83% 82.86% (3.86)% 93.14% 1.87% (2.85)% 95.68% 0.74% 1.21% 96.33% 89.72% 72.94% (21.48)% (40.24)% 34.25% (11.79)% (27.10)%	EM30 EM60 OA30 OA90 OA60 EM60 OA60 EM45 EM60 EM45 TT60 OA60 OA60 OA60 OA90 EM30 OA60 OA60 OA60 EM60 OA60 OA60 OA60 OA60 OA60 OA60 OA30 OA45 OA60 OA60 OA60 OA60 OA30 OA90 OA60 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	24,289 (63,638) 220,353 224,100 194,671 385,516 173,919 42,376 63,638 (262,434) 152,244 385,231 93,693 34,368 (2,008,759) 23,743 (1,251,180) 137,377 (137,377) (26,738) (369,683) 1,360,946 (1,712,753) (15,204) 2,058,090 (3,737,706) (9,407) (39,767) (937,216) (149,370) (107,310) 15,055 17,439 (26,958) 1,712,753 3,737,706	1.22% (4.84)% 40.16% 26.58% 23.09% 45.73% 63.63% 1.76% 2.64% (11.95)% 46.31% 4.06% 0.99% 0.36% (55.18)% 1.67% (93.44)% 89.59% (11.73)% (2.28)% (31.58)% 27.72% (98.26)% (0.87)% 27.63% (97.51)% (0.25)% (1.04)% (96.81)% (96.20)% (91.38)% 20.83% 24.13% (82.70)% 12.10% 26.41%

� 86 �

Company Name	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others(Note 1)	Transactions with Terms Different from Others(Note 1)	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEH AFE AGPH AIB AIB AIB AIL AIL AIN AIN AIN AIT AIT AJC ALIN AMEX AMI AMI	ACH AIB AIT ASIN ASZ AUK CPY SER ACF ACG ACZ AEH AIB AIT APX ASZ ENNL The Company AEG The Company AGM AEG AEG APX ALIN The Company AMI AMI The Company AEG AEG The Company AIL AAC AIN AIN	Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases	(3,824,276) (4,042,590) (3,872,482) (18,640,638) (2,047,700) (6,330,433) (1,214,566) (1,559,211) 345,788 573,227 123,247 216,766 303,279 252,276 644,861 126,574 193,794 62,204,606 (216,766) 533,177 297,781 (303,279) 4,042,590 134,904 (327,647) 7,928,004 (359,615) 3,107,010 4,244,333 (252,276) 3,872,482 1,493,314 327,647 1,831,758 (3,107,010) 359,615	(5.64)% (5.96)% (5.71)% (27.49)% (3.02)% (9.34)% (1.79)% (2.30)% 0.53% 0.87% 0.19% 0.33% 0.46% 0.38% 0.98% 0.19% 0.30% 94.89% (73.09)% 42.98% 98.29% (6.58)% 90.66% 3.03% (1.99)% 52.44% (3.85)% 32.81% 44.82% (5.86)% 94.25% 97.02% 100.00% 100.00% (99.72)% 11.09%	OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA30 OA60 OA60 OA60 OA30 OA60 OA60 OA60 OA120 OA150 OA60 OA90 OA90 OA60 OA60 OA60 OA120 OA60 OA90 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	937,216 859,846 15,866 2,161,708 10,413 1,895,944 304,759 279,817 (1,360,946) (2,058,090) (15,055) (3,584) (688,815) (900,067) (52,803) (232,080) (26,786) (607,349) 3,584 (82,193) (220,353) 688,815 (859,846) (29,114) 96,076 (3,491,157) 13,244 (582) (995,444) 900,067 (15,866) (970,810) (96,076) (385,231) 582 (13,244)	6.62% 6.08% 0.11% 15.28% 0.07% 13.40% 2.15% 1.98% (18.89)% (28.56)% (0.21)% (0.05)% (9.56)% (12.49)% (0.73)% (3.22)% (0.37)% (8.43)% 100.00% (92.19)% (99.71)% 31.54% (95.24)% (3.22)% 4.44% (85.20)% 4.29% (0.06)% (99.08)% 48.56% (55.70)% (93.37)% (99.92)% (100.00)% 7.86% (2.20)%

� 87 �

Company Name	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others(Note 1)	Transactions with Terms Different from Others(Note 1)	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
AMI AOA AOC AOE APHI APHI API APL APX APX APX APX APX ARU ASC ASC ASIN ASIN ASIN ASSB ASSB ASSB ASZ ASZ ATB ATH AUK AVN AVN Bluechip Bluechip CPY CRI ENNL HSN	The Company AOI ACCQ AOI The Company The Company The Company ACG ACF ACG ACZ AEG AIB ASIN AAC The Company ACZ AEG ARU HSN SMA The Company AEG AEG AAC The Company AEG The Company The Company ACA MIA AEG PAM AEG ASSB	Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary	Purchases Purchases (Sales) Purchases (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) Purchases	2,676,504 168,493 (274,431) 404,061 (204,754) 2,389,336 (102,754) (141,242) (160,511) (231,546) (177,290) (644,861) (134,904) (154,416) 728,672 134,189 230,913 18,640,638 154,416 (112,401) (411,108) 2,365,200 (126,574) 2,047,700 271,139 4,489,999 6,330,433 (118,420) 142,574 162,433 115,045 1,214,566 876,523 (193,794) 112,401	82.51% 92.85% (92.22)% 99.29% (6.43)% 86.22% (51.24)% (100.00)% (9.13)% (13.17)% (10.08)% (36.68)% (7.67)% (100.00)% 84.08% 15.48% 1.18% 95.19% 0.79% (3.81)% (12.80)% 90.21% (5.22)% 90.56% 2.09% 80.41% 97.56% (31.98)% 67.07% 4.19% 2.97% 90.55% 48.60% (100.00)% 73.36%	OA90 OA90 EM60 OA60 OA60 OA60 OA60 OA30 OA60 OA45 OA90 OA60 OA60 OA60 OA60 OA60 OA30 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 EM30 EM30 OA60 TT60 OA30 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	(555,097) (224,100) 26,738 (194,671) 59,587 (532,357) 16,182 9,407 15,204 39,767 26,958 52,803 29,114 12,088 (93,693) (7,639) (17,439) (2,161,708) (12,088) 7,610 - (535,730) 232,080 (10,413) (34,368) (636,650) (1,895,944) 30,868 - (23,743) (108,923) (304,759) (152,244) 26,786 (7,610)	(92.08)% (98.12)% 96.14% (100.00)% 22.68% (91.48)% 56.78% 62.98% 7.16% 18.73% 12.70% 24.87% 13.71% 100.00% (51.84)% (4.23)% (0.74)% (91.45)% (0.51)% 4.47% - (97.75)% 51.97% (98.04)% (1.51)% (93.54)% (99.33)% 62.27% - (4.29)% (19.69)% (94.02)% (99.83)% 100.00% (49.47)%

� 88 �

Company Name	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others(Note 1)	Transactions with Terms Different from Others(Note 1)	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
MIA SER SMA	Bluechip AEG ASSB	Parent/Subsidiary Fellow subsidiary Parent/Subsidiary	(Sales) Purchases Purchases	(115,045) 1,559,211 411,108	(66.43)% 100.00% 12.57%	EM30 OA60 OA60	- - -	- - -	108,923 (279,817) -	94.84% (99.33)% -

Note 1: The trade terms and price of sales with related parties are not comparable to those with third-party customers as they are determined by the economic environment and market competition of specific locations.

The purchase price with related parties are not comparable to the purchase price with third-party vendors as the specifications of products are different. Note 2: The above transactions between parent and subsidiary are eliminated when preparing the consolidated financial statements.

� 89 �

Acer Incorporated

Receivables from related parties which exceed NT$100 million or 20% of the paid-in capital December 31, 2022

Table 6

Table 6	Table 6	Table 6	Table 6	Table 6
					(Amounts in Thousands of New Taiwan Dollars)
Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Loss Allowance	Note
					Amount	Action Taken
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company ABH AGM AOI AOI AOI AGT WLII PAM AAC	AAC ACA ACCQ ACNZ ACS AEG AFE AIL AIN AJC AMI APHI ASSB ATH ALT ITS WLII ABST AGPH AOA AOE The Company The Company CRI CRI AMEX	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary	2,008,759 1,252,722 369,683 149,370 107,310 607,349 458,021 3,491,157 995,693 981,656 555,204 534,957 535,730 636,650 144,693 411,943 263,164 101,303 220,353 224,100 194,671 385,516 174,848 155,325 152,244 385,231	4.56 3.06 21.16 3.23 4.41 17.25 5.33 1.86 2.35 1.77 7.28 4.20 4.32 4.20 7.37 3.95 9.08 - 1.34 0.82 2.58 6.47 5.70 - 6.36 5.80	- 752,848 - 103,725 - - 69,777 729,842 - 602,730 8,036 37,768 337,627 326,676 27 205 - - 58,319 196,233 102,787 - 72,885 - - 351,108	- Under collection - Under collection - - Under collection Under collection - Under collection Under collection Under collection Under collection Under collection Under collection Under collection - - Under collection Under collection Under collection - Under collection - - Undercollection	926,743 965,158 369,683 149,370 106,161 190,323 33,480 1,293,579 514,137 307,538 276,262 314,837 230,319 589,855 5,102 413 251,776 - 213,737 7,074 63,760 385,516 107,401 - 38,947 322,879	- - - - - - - - - - - - - - - - - - - - - - - - - -	Note 2

� 90 �

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period	Loss Allowance	Note
					Amount	Action Taken
AAC AAH ACCN ACCQ ACF ACG ACH AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AIB AIT ASC ASIN ASZ AUK Bluechip GWI MIA	ASC AAC ACCQ The Company AEG AEG AEG AEH The Company ACF ACG ACH AIB ASIN AUK CPY SER AEG AEG AAC AEG AEG AEG MIA AAC Bluechip	Fellow subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	503,387 4,644,919 137,377 274,215 1,360,946 2,058,090 406,881 137,954 2,014,650 1,712,753 3,737,706 937,216 859,846 2,161,708 1,895,944 304,759 279,817 690,995 900,067 292,373 485,200 232,540 515,237 108,960 446,801 108,923	8.94 - 3.20 - 0.27 0.26 0.07 0.40 - 4.41 3.52 4.10 4.88 4.54 3.08 3.61 4.96 0.46 0.28 27.44 - 0.50 0.11 - - 2.11	2,367 - - - 32,477 - 6,511 - - 699,467 1,417,196 556,309 468,021 - 1,162,773 - - - - - - - - 1,472 - -	Under collection - - - Under collection - Under collection - - Under collection Under collection Under collection Under collection - Under collection - - - - - - - - Under collection - -	2,339 - - - 32,477 - 6,511 - - 688,803 737,545 547,905 458,726 - 1,130,425 - - - - - - - - 30 - -	- - - - - - - - - - - - - - - - - - - - - - - - - -

Note 1: The above transactions between parent and subsidiary are eliminated when preparing the consolidated financial statements. Note 2: Receivables are financing and interest receivables, not applicable.

� 91 �

Acer Incorporated

Names, Locations, and Related Information of Investees over which The Company Exercises Significant Influence December 31, 2022

Table 7

Table 7	Table 7	Table 7	Table 7	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022
				(Amounts in Thousands of New Taiwan Dollars/Shares)
Investor	Investee	Location	Main Businesses and Products	Original Investment Amount		Balances as of December 31, 2022			Maximum ownership during 2022		Net Income (Loss) of the Investee	Share of profits/ losses of investee	Note
				December 31, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company ASBZ HSNC HSNC HSNC HSNC HSNC AST AST AST ADSC ADSC ADSC ADSC ADSC ADSC ADSC	ADSC Boardwalk AEH AHI Bluechip ASCBVI CCI ACSI WLII AGT ABH ASBZ EDC AOI HSNC SFT AST API AGM AAM ABI ASSB ACS CHC VRE HSNT HSNI HSN HSNP HSNV ISU ASTA SPE ECS APDI ASDI KBest KTI AST ACSI	Taiwan British Virgin Islands Switzerland British Virgin Islands Australia British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Malaysia Singapore Taiwan Switzerland Thailand Indonesia Malaysia Philippines Vietnam Taiwan U.S.A. Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Investment and holding activity Investment and holding activity Investment and holding activity Investment and holding activity Sale of computer peripherals and software system Investment and holding activity Investment and holding activity Cyber security service Sale of computers and communication products Research, design and sale of smart handheld products and peripheral 3C products Investment and holding activity Solutions provider of B2B virtual reality Business continuity plan and IT operation outsourcing services Sale, manufacture, import and export of commercial computer products, software, components, peripheral equipment and apparatus; repair and maintenance service of computer products After-sale and value-added services of IT products Research, manufacturing and sale of radio-detection and civilian technology application products related to distance System integration service Intelligent solutions of air quality Agency of video game console and peripherals Property held and related management business Sales of beverages and related products Sale of brand-name IT products Sale of brand-name IT products Energy technical services Research of solutions to B2B virtual reality After-sale and value-added services of IT products After-sale and value-added services of IT products After-sale and value-added services of IT products After-sale and value-added services of IT products After-sale and value-added services of IT products Human resources and project service System integration service Plant engineering planning and construction Business integration system Solar optronics business Hotel management service Development and manufacturing of radio and microwave equipment Manufacturing of lithium battery module System integration service Cyber security service	1,143,730 41,496,383 2,464,262 6,230,208 43,407 5,658,111 1,299,817 1,362,550 728,694 6,993,697 2,128,004 395,981 - 333,155 102,419 132,000 288,390 271,642 893,639 1,077,189 15,000 1,193,559 171,997 50,000 - 2,345 30,501 87,268 6,357 4,192 20,000 14,000 99,700 40,851 - - 130,720 15,000 8,998 18,720	1,143,730 41,496,383 2,464,262 6,230,208 43,407 5,658,111 1,299,817 1,139,390 728,694 6,826,148 2,128,004 395,981 518,167 333,155 107,429 132,000 82,577 93,365 107,851 1,077,189 - - - - 38,979 2,345 30,501 83,802 6,357 4,192 20,000 14,000 - 40,851 29,577 500,000 130,720 - - -	66,215 1,263,432 147 191,155 1,421 158,475 - 13,296 48,073 39,309 130,308 441 - 28,970 10,242 13,200 11,349 22,484 24,449 107,719 1,500 30,969 3,985 5,000 - 25 990 1,000 106 - 2,000 1 3,000 1,244 - - 4,713 1,500 200 200	100.00 92.02 100.00 100.00 24.86 100.00 100.00 59.78 58.93 65.51 100.00 66.81 - 40.55 63.18 55.00 56.75 89.94 69.85 100.00 100.00 100.00 100.00 41.67 - 100.00 99.00 100.00 100.00 100.00 100.00 100.00 33.33 24.88 - - 29.84 75.00 1.00 0.88	1,268,035 28,595,246 19,359,626 16,338,839 92,038 3,271,416 615,773 722,725 1,211,483 2,232,474 1,954,777 7,649 - 347,183 125,938 53,733 396,941 267,573 799,007 1,075,017 5,151 1,404,134 223,952 49,513 - 5,995 42,529 104,332 32,116 4,230 40,798 20,867 110,277 28,268 - - 31,836 6,545 6,994 10,638	66,215 1,263,432 147 191,155 1,421 158,475 - 13,296 48,073 39,308 130,308 441 44,462 28,970 10,743 13,200 11,349 22,484 24,449 107,719 1,500 30,969 3,985 5,000 100 25 990 1,000 106 - 2,000 1 3,000 1,244 2,958 5,000 4,713 1,500 200 200	100.00 92.02 100.00 100.00 28.10 100.00 100.00 64.54 58.93 100.00 100.00 66.81 100.00 40.55 66.27 55.00 56.75 100.00 100.00 100.00 100.00 100.00 100.00 41.67 100.00 100.00 99.00 100.00 100.00 100.00 100.00 100.00 33.33 24.88 100.00 100.00 29.84 75.00 1.00 0.90	47,216 403,836 331,884 11,811 36,737 (18,676) 3,997 155,366 415,049 132,552 156,011 692 89,192 216,560 22,285 (32,488) 75,902 (622) 39,840 (2,222) (9,849) 20,408 7,072 (1,843) 145 3,708 4,943 24,488 10,994 1,233 17,891 11,236 35,886 33,425 1,577 26,784 (4,617) (11,274) 75,902 155,366	47,216 371,591 331,884 11,811 9,315 (18,676) 3,997 95,406 244,574 90,223 156,011 462 - 89,063 12,980 (17,868) 42,881 (543) 28,670 (2,222) (9,849) 194,934 38,755 (487) Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Joint Venture Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Associate Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Fellow subsidiaries Fellow subsidiaries

� 92 �

Investor	Investee	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balances as of December 31, 2022	Balances as of December 31, 2022	Balances as of December 31, 2022	Maximum ownership during 2022	Maximum ownership during 2022	Net Income (Loss) of the Investee	Share of profits/ losses of investee	Note
				December 31, 2022	December 31, 2021	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
CCI WLII WLII WLII WLII WLII WLII WLII PAM PAM PAM PAM AEH ACTI Bluechip Bluechip Bluechip ABH ABH ABH ABH ABH ABH ABH ABH ABH ACTTW ACTTW ABST AEB AGM AGM API API ACSI ACSI AOI AOI AOI AOI AOI AOI AOI AOI AOI AOTH AOGS	ECS HPT WELL ANT PBT PGL Bluechip PAM PAL DCL CRI PRV Boardwalk GrandPAD BLI DTP BLNZ AEB ACTTW MPS ALT ITS AMED ABC XPL AIC ABC ABST ABSG DIS AGPH WKC APDI ASDI ACAD EDC Bluechip AOA AOE AOTH AOJ AOSV AOGS HTW AMTC GCL AOAU	Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Islands Australia Taiwan British Virgin Islands Samoa U.S.A. Vietnam British Virgin Islands U.S.A. Taiwan Australia New Zealand Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Germany Taiwan Philippines Cayman Islands Taiwan Taiwan Taiwan Taiwan Australia U.S.A. the Netherlands British Virgin Islands Japan Taiwan Australia Hong Kong Taiwan Hong Kong Australia	Business integration system Retail service of software Sales of 3C products and home appliances OEM sales agent of mechanical components, automobiles and locomotives Sale of health supplements and biotech service Investment and holding activity Sale of computer peripherals and software system Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Investment and holding activity Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Investment and holding activity Development of user-friendly IoT device Sale of computer peripherals and software system Investment and holding activity Investment and holding activity Providing solutions of cloud and digitalization Development of Internet of Beings and cloud technology, and integration of cloud technology, software and hardware Research, development, and sale of batteries High performance computing, cloud computing, softwaredefined storage, and IT solution Programs and services of intelligent transportation and electronic ticketing Intelligent medical examination and data interpretation analysis, medical big data, and health management and related information exchange Software design service Design, development and sale of smart bicycle speedometer Providing cloud technology and solutions Software design service Technical service and research of aBeing cloud digital content management Technical service and research of aBeing cloud digital content management Wholesale of packaged software Agency of video game console and peripherals Investment and holding activity Solar optronics business Hotel management service Cyber security training Uninterrupted operation and IT operation outsourcing services Sale of computer peripherals and software system Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment Investment and holding activity Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment Software development and agency Manufacturing and sale of touch display, touch controller and its driver Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment	- 26,820 10,000 203,052 750 - 22,411 628,483 36,979 135,924 99,087 2,880 3,333,032 350,477 1,000 110,110 69,343 276,559 955,056 179,111 78,613 394,772 267,834 18,500 38,173 50,676 76,371 300,000 325,630 10,125 8,340 641,544 37,446 73,758 10,000 475,748 36,915 295,771 214,094 1,623 2,899 60,000 2,956 - 363,284 2,675 3	- 26,820 10,000 203,052 750 337,906 - - - - - 2,880.00 3,333,032 350,477 1,000 110,110 69,343 275,612 955,056 141,711 78,613 394,772 83,490 18,500 38,173 50,676 76,371 300,000 325,630 - - - - - 10,000 - 36,915 295,771 214,094 1,623 2,899 60,000 2,956 405 376,238 2,675 3	452 882 1,000 6,000 75 - 434 14,340 70 650 2,000 1 109,639 436 100 1 3,600 26,304 2,900 9,750 6,581 34,308 10,279 1,225 2,310 2,900 1,275 2,500 6,029 675 154 9,589 2,958 5,000 1,000 44,462 570 15,000 1 50 1 1,500 105 - 6,399 300 1	9.05 30.22 100.00 20.00 75.00 - 7.59 62.53 100.00 100.00 100.00 100.00 7.98 28.85 100.00 100.00 100.00 63.46 100.00 94.20 78.59 94.41 67.51 49.00 100.00 100.00 51.00 100.00 100.00 20.00 100.00 54.96 100.00 100.00 100.00 100.00 9.97 100.00 100.00 100.00 100.00 100.00 70.00 - 16.60 100.00 100.00	10,275 16,899 26,616 317,502 704 - 22,719 591,945 39,259 123,915 133,279 2,128 2,485,368 182,967 (2,654) 115,329 95,207 1,129,963 (42,450) 76,990 65,666 31,478 175,605 (11,789) 14,152 16,298 (12,271) (63,553) (22,597) 10,785 17,133 641,544 38,667 82,622 5,922 564,183 37,003 (169,763) (23,115) 319,822 28,413 13,574 9,195 - 348,265 3,890 13,355	452 882 1,000 6,000 75 2,550 434 14,340 70 650 2,000 1 109,639 436 100 1 3,600 26,404 2,900 9,750 6,581 34,308 10,279 1,225 2,310 2,947 1,275 2,500 6,029 675 154 9,589 2,958 5,000 1,000 44,462 570 15,000 1 50 1 4,000 105 - 6,399 300 1	9.05 30.22 100.00 20.00 75.00 51.00 8.31 62.53 100.00 100.00 100.00 100.00 7.98 28.88 100.00 100.00 100.00 72.44 100.00 100.00 78.59 94.41 67.51 49.00 100.00 100.00 51.00 100.00 100.00 20.00 100.00 54.96 100.00 100.00 100.00 100.00 11.27 100.00 100.00 100.00 100.00 100.00 70.00 100.00 17.28 100.00 100.00	33,425 9,210 16,737 394,843 (7) 64,986 36,737 4,486 16,488 (11,221) 71,915 (652) 403,836 (5,232) (1,040) 902 4,311 436,771 (9,161) (23,280) 1,338 (80,169) (54,706) (11,494) 1,623 (556) (11,494) (492) 244 12,401 8,609 - 1,577 26,784 (1,783) 89,192 36,737 (646) (1,065) 45,541 727 20 (4,646) 5 312,302 (1) (4,646)	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Associate Associate Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Fellow subsidiaries Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiaries Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiaries Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary

Note 1: The share of profits or losses of the investee company is not disclosed herein as such amount is already included in the share of profits or losses of the investor company.

� 93 �

Acer Incorporated

Information on Investments in Mainland China For the year ended December 31, 2022

Table 8

Table 8	Table 8	Table 8	Table 8	Table 8
										(Amounts in Thousands of New Taiwan Dollars)
Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2022	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2022	Net Income (Losses) of Investee	% of Ownership of Direct or Indirect Investment	Maximum ownership during 2022		Share of profits/ losses of investee	Carrying Value as of December 31, 2022	Accumulated Inward Remittance of Earnings as of December 31, 2022
					Outflow	Inflow				Shares	Percentage of Ownership
Acer Third Wave Software (Beijing) Co. Ltd. Acer Information (Zhong Shan) Co., Ltd. Acer Computer (Shanghai) Ltd. Acer (Chongqing) Ltd. Acer Cloud Technology (Chongqing) Ltd. Innovation and Commercialization Accelerator Inc. Xplova (Shanghai) Ltd. Consumer Insights Research (Chongqing) Inc. Acer China Venture Corp Acer China Venture Partnership (Limited Partnership) Sertec (Beijing) Ltd. Beijing Altos Computing Ltd. Shanghai AST Technology Service Ltd. GadgeTek (Shanghai) Limited AOPEN International (ShangHai) Co., Ltd AOPEN Information Products (Zhongshan) Inc. Protrade Shanghai Trading Co., Ltd. Shanghai Winking Entertainment Limited Shanghai Wishing Entertainment Limited Nanjing Winking Entertainment Ltd	Sale of commercial and cloud application software and technical service Sale of brand-name IT products Sale of brand-name IT products Sale of brand-name IT products Design, development, sale, and advisory of computer software and hardware Development, design, manufacturing, sale, and maintenance of intelligent terminal devices Sale of smart bicycle speedometer and operating social platform for bicycle riding and sports Collection, analysis and research of data information Fund company management Investment fund Repair and maintenance of IT products High performance computing, cloud computing, software-defined storage, and IT solution System integration service Sale of peripheral 3C products Sale of computer, apparatus system, and peripheral equipment Manufacture and sale of computer parts and components Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Holding activity, Art outsourcing and Game development headquarter Management of collaborative art design and IP licensing in Mainland China Art outsourcing	92,124 46,062 61,416 4,606,200 153,540 26,708 9,231 13,354 22,257 66,770 4,451 19,586 19,973 15,354 161,322 450,261 19,960 446,030 92,000 88,847	1 2 2 2 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2	92,124 - 61,416 4,729,032 (Note 2) 153,540 (Note 3) 9,231 (Note 3) 22,257 62,319 (Note 4) 4,451 19,586 19,973 15,354 161,322 450,261 - - - -	- - - - - - - - - - - - - - - - - - - -	- - - - - - - - 1,898 9,469 - - - - - - - - - -	92,124 - 61,416 4,729,032 153,540 - 9,231 - 20,359 52,850 4,451 19,586 19,973 15,354 161,322 450,261 - - - -	(6,480) 3,569 19,448 (55,754) (2,939) (4,013) (276) (4,697) (118) 2 68 (2,029) 713 11,184 (2,864) 48,454 (10,743) - - -	100.00 100.00 100.00 100.00 100.00 30.00 100.00 30.00 - - 100.00 100.00 100.00 100.00 100.00 100.00 100.00 54.96 54.96 54.96	- - - - - - - - - - - - - - - - - - -	100.00 100.00 100.00 100.00 100.00 30.00 100.00 30.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 54.96 54.96 54.96	(6,480) 3,569 19,448 (55,754) (2,939) (1,204) (276) (1,409) (117) 2 68 (2,029) 713 11,184 (2,864) 48,454 (10,743) - - -	(7,364) 221,950 1,256,648 4,487,516 28,662 6,314 5,164 7,272 - - 9,163 93,295 29,842 46,583 12,768 303,577 120,897 158,855 9,053 114,213	- - - - - - - - - - - - - - - - - - - -

Note 1: Method of Investment:

Type 1: Direct investment in Mainland China.

Type 2: Indirect investment in Mainland China through a holding company established in other countries.

Note 2: Acer Intellectual (Chongqing) Limited had merged with Acer (Chongqing) Ltd. in 2014, and Acer (Chongqing) Ltd. was the surviving entity from the merger. This amount included the original investment in

Acer Intellectual (Chongqing) Limited of $122,832 (US$ 4,000 thousand).

Note 3: Innovation and Commercialization Accelerator Inc. and Consumer Insights Research (Chongqing) Inc. were reinvested by Acer Cloud Technology(Chongqing) Ltd.

Note 4: Acer China Venture Partnership was invested by the Company and Acer China Venture Corp of $60,533 and $4,324, respectively.

� 94 �

Investor Company Name	Accumulated Investment in Mainland China as of December 31, 2022 (Note 5)(Note 6)(Note 7)(Note 8)	Investment Amounts Authorized by Investment Commission, MOEA (Note 5)(Note 6)(Note 7)(Note 8)	Upper Limit on Investment Authorized by Investment Commission, MOEA
The Company and Subsidiaries	$5,791,757 (US$188,607,415)	$7,893,171 (US$257,039,530.8)	(Note)

Note 5: In September, 2008, AOI had disposed all shares of JNS Technology Co., Ltd., and the proceeds from the disposal of US$ 730,000 had been remitted to AOI in March 2010.

AOI has not yet to report to MOEA, therefore, the amout of US$ 1,645,200 was still included the original investment in JNS Technology Co., Ltd.

Note 6: T-Conn Precision(Zhongshan) Co., Ltd., indirectly invested by AOI, had been dissolved and the related liquidation process has been completed. The liquidation proceeds of US$ 31,549.06 (according to ownership percentage of 19%) has been remitted to Super Elite Ltd., a holding company established in other countries. On March 12, 2010, AOI has obtained MOEA's approval to

withdraw its investment. However, the amount of accumulated investment in Mainland China still included the amount of US$ 57,000 due to the liquidation of capital which has yet to be remitted to Taiwan. Note 7: As a result of the acquisition of WKC, AGM indirectly acquired its investment of WKSH located in Mainland China, and meanwhile accumulated the investments in Mainland China amounting to US$16,033,042. Note 8: AGM made indirect investment in Mainland China through a holding company (WKC) established in other countries.

The above amounts were translated into New Taiwan dollars at the exchange rate of US$1=NT$30.708 as of December 31, 2022.

Note: Since the Company has obtained the Certificate of Headquarter Operation, there is no upper limitation on investment in Mainland China.

� 95 �

96

ACER INCORPORATED

Statement of Cash and Cash Equivalents

December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

Item Cash on hand Bank deposits Time deposits (mature within three months)	Description Amount $ 614 Note 1 5,185,171 Interest rate at 4.00%~4.38%; Note 2 11,239,128 $ 16,424,913

Note 1: Foreign currency deposits (in thousands) and their exchange rates were as follows:

CNY	$	685	CNY: NTD=1	:	4.4513
EUR	$	1,071	EUR: NTD=1	:	32.8729
USD	$	105,768	USD: NTD=1	:	30.7080
JPY	$	13	JPY: NTD=1	:	0.2342
SEK	$	213	SEK: NTD=1	:	2.9447
AUD	$	81	AUD: NTD=1	:	20.9214
NZD	$	491	NZD: NTD=1	:	19.4996
HKD	$	0.2	HKD: NTD=1	:	3.9361

Note 2: Including USD $366,000.

(Continued)

97

ACER INCORPORATED

Statement of Notes and Accounts Receivable

December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

Item		Amount
Notes and accounts receivable:
Client A	$	548,419
Client B		439,851
Client C		215,398
Client D		207,280
Others (the amount of individual client does not exceed 5% of the account balance)		2,160,782
Less: loss allowance		(1,755)
	$	3,569,975

Statement of Inventories

Item Raw materials Finished goods and merchandise Spare parts Inventories in transit		Amount Carrying Amount Market Value Note $ 11,456,106 11,458,853 Market value at net realizable value 709,763 856,128 Market value at net realizable value 59,573 59,573 Market value at net realizable value 290,504 290,504 Market value at net realizable value $ 12,515,946 12,665,058
		Carrying Amount $ 11,456,106 709,763 59,573 290,504 $ 12,515,946

(Continued)

98

ACER INCORPORATED

Statement of Other Current Assets

December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Prepaid expenses		$	67,340
Input VAT			172,021
Current income tax assets			56,483
Others			10,805
		$	306,649

(Continued)

99

Acer Incorporated

Statement of Changes in Financial Assets Measured at Amortized Cost – Non-current

December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

Name Citigroup Global Markets Holdings Inc. Bond UBS Group AG Bond Credit Agricole SA Bond HSBC Bond	Beginning Balance Quantity Amount - $ - - - - - - - $ -	Addi	tion Amount 566,000 57,880 58,174 57,721 739,775	Deduc	tions Amount - - - - -	Others	(Note) Amount 48,160 3,267 3,382 3,198 58,007	Ending	Balance Amount 614,160 61,147 61,556 60,919 797,782	Pledged as Collateral Remark
	Quantity	Quantity - - - -		Quantity - - - -		Quantity - - - -		Quantity - - - -
	- - - -

Note: Others include amortization and translation adjustments.

(Continued)

100

ACER INCORPORATED

Statement of Changes in Investments Accounted for Using The Equity Method

For the year ended December 31, 2022

(Expressed in Thousands of New Taiwan Dollars / Thousands of Shares)

Name of Investee	Beginning	Balance		Addi	tion	Decre	ase Amount (note) (57,927) - - - (1,812) - - (40,590) (153,834) - (112,895) - - (481,643) (2,474) (9,016) - - (5,520) (23,833) (964) (41,931) (453) - - - - - (932,892) - 40,330 (892,562)	Others (13,100) 2,723 439,371 (791,193) (1,574) 2,531,495 10,884 29,040 1,190 (9,315) 303,203 - (9,341) 12,823 - - - - 2,399 (19,366) 6,026 (117,353) - - 761,108 25,466 - 3,530 3,168,016 (2,491,854) - 676,162	Investment Profit (Loss) 47,216 371,591 331,884 11,811 9,315 (18,676) 3,997 95,406 244,574 90,223 156,011 462 89,063 - (117) 2 68 (17,868) 12,980 42,881 (543) 28,670 (2,222) (9,849) 194,934 38,755 (487) 997 1,721,078 - - 1,721,078	Foreign Currency Translation Differences 12 2,733,735 849,611 1,674,281 4,023 75,461 - - 1,384 614 903 95 (3,780) - (2) 363 194 - 4,480 1,043 - 128 - - (745,467) (12,266) - (973) 4,583,839 - - 4,583,839	Ending balance	Ending balance		Market Valu V	e or Net Assets alue Total Amount Collateral 1,268,035 - 28,595,246 - 19,359,626 - 16,338,839 - 92,038 - 3,271,416 - 615,773 - 1,509,096 - 1,870,040 - 2,232,474 - 1,954,777 - 7,649 - 1,370,281 - - - - - - - 9,163 - 53,733 - 353,349 - 486,872 - 267,573 - 1,960,810 - 1,075,017 - 5,151 - 1,404,134 - 223,952 - 49,513 - - -
	Shares Amount 66,215 1,291,834 1,263,432 25,487,197 147 17,738,760 191,155 15,443,940 1,421 82,086 158,475 683,136 - 600,892 10,971 415,709 48,073 1,118,169 12,540 1,983,403 130,308 1,607,555 441 7,092 28,970 271,241 44,462 468,820 - 2,593 - 8,651 - 8,901 13,200 71,601 10,743 111,599 6,775 190,403 8,222 84,778 10,000 133,637 107,719 1,077,692 - - - - - - - - - 9,895 68,899,584 (423,002) (524,887) $ 67,951,695 h dividend $422,308 distributed f			Shares - - - - - - - 2,325 - 26,769 - - - - - - - - - 4,574 14,262 15,200 - 1,500 30,969 3,985 5,000 - om the investees.	Amount - - - - - - - 223,160 - 167,549 - - - - - - - - - 205,813 178,276 795,856 - 15,000 1,193,559 171,997 50,000 - 3,001,210 - - 3,001,210	Shares - - - - - - - - - - - - - (44,462) - - - - (501) - - (751) - - - - - -					Shares 66,215 1,263,432 147 191,155 1,421 158,475 - 13,296 48,073 39,309 130,308 441 28,970 - - - - 13,200 10,242 11,349 22,484 24,449 107,719 1,500 30,969 3,985 5,000 -	Percentage of Ownership % 100.00 % 92.02 % 100.00 % 100.00 % 24.86 % 100.00 % 100.00 % 59.78 % 58.93 % 65.51 % 100.00 % 66.81 % 40.55 - - - % 100.00 % 55.00 % 63.18 % 56.75 % 89.94 % 69.85 % 100.00 % 100.00 % 100.00 % 100.00 % 41.67 -	Amount 1,268,035 28,595,246 19,359,626 16,338,839 92,038 3,271,416 615,773 722,725 1,211,483 2,232,474 1,954,777 7,649 347,183 - - - 9,163 53,733 125,938 396,941 267,573 799,007 1,075,017 5,151 1,404,134 223,952 49,513 13,449 80,440,835 (2,914,856) (484,557) 77,041,422	Unit Price (In Dollars) 19.15 22.63 131,698 85.47 64.77 20.64 - 113.50 38.90 56.79 15.00 17.34 47.30 - - - - 4.07 34.50 42.90 11.90 80.20 9.98 3.43 45.34 56.20 10.00 -
ADSC Boardwalk AEH AHI Bluechip ASCBVI CCI ACSI WLII AGT ABH ASBZ AOI EDC ACVC ACVP SEB SFT HSNC AST API AGM AAM ABI ASSB ACS CHC Others Subtotal Less: Treasury stock held by subsidiaries Adjustments of unrealized profits or losses resulting from transactions with subsidiaries and associates Note: The amount included cas			r

(Continued)

101

ACER INCORPORATED

Statement of Changes in Financial Assets Measured at Fair Value through Other Comprehensive Income

－ Non-current

For the year ended December 31, 2022

(Expressed in Thousands of New Taiwan Dollars / Thousands of Shares)

Name of Financial Instrument Common Stock of Qisda Common Stock of Wistron Common Stock of WPG Holdings Preferred stock B of SKFH Stock of Pell Bio-med Technology Co., Ltd. Stock of CellMax Life Inc. Stock of CT Ambi Investment and Consulting Inc. Common Stock of FocalTech Preferred stock B of CTBC Preferred stock A of CTFH Preferred stock B of CTFH Preferred stock A of FBFH Preferred stock B of FBFH Preferred stock C of FBFH Preferred stock A of UBOT Preferred stock E of TSFH Common Stock of Apacer Technology Stock of Fortune Electric Value Company Limited Stock of Starbit Innovation Co., Ltd. Stock of GreenHarvest Co., Ltd.	Beginning b	a	lance Amount $ 2,488,151 1,597,886 211,008 292,666 120,000 17,421 20,000 1,292,713 53,286 16,354 74,741 16,053 60,008 420,700 1,590 7,965 - - - - $ 6,690,542	Additio	n Amount 223,781 - - - - - - 137,149 1,593 - - - 2,513 - - 9,855 363,000 80,000 35,040 49,995 902,926	Decrea	se		Unrealized Gain (Loss) (192,065) 13,704 (18,052) (47,469) - - - (918,127) (4,178) (1,638) (10,476) (711) (5,539) (35,000) (39) (534) 92,400 - - - (1,127,724)	Ending B	alance Amount Collateral 2,519,867 - 1,611,590 - 192,956 - 245,197 - 120,000 - 17,421 - 20,000 - 511,735 - 50,701 - 14,716 - 64,265 - 15,342 - 56,982 - 385,700 - 1,551 - 17,286 - 455,400 - 80,000 - 35,040 - 49,995 - 6,465,744
	Shares 81,713 54,816 4,012 6,830 2,400 600 2,000 7,538 830 260 1,177 254 951 7,000 30 150 - - - -			Shares 7,803 - - - - - - 1,195 25 - - - 40 - - 185 11,000 2,500 2,920 1,111		Shares - - - - - - - - - - - - - - - - - - - -	Amount - - - - - - - - - - - - - - - - - - - -			Shares 89,516 54,816 4,012 6,830 2,400 600 2,000 8,733 855 260 1,177 254 991 7,000 30 335 11,000 2,500 2,920 1,111
							-

Statement of Other Non-current Assets

Item		Amount
Prepaid patent development expense	$	45,232
Assets recognized from costs to fulfill contracts		1,225
with customers
	$	46,457

(Continued)

102

ACER INCORPORATED

－ Statement of Other Financial Assets Non-current

December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

Item Amount Tender deposits and refundable deposits $ 148,466

Statement of Notes and Accounts Payable

	Vendor Name		Amount
Vendor A		$	6,430,763
Vendor B			2,334,521
Vendor C			1,865,677
Vendor D			1,193,147
Others (the amount of	individual vendor does not exceed 5% of the account balance)		9,275,294
		$	21,099,402

(Continued)

103

ACER INCORPORATED

Statement of Other Payables

December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Royalty payable		$	3,467,820
Accrued for price difference			8,239,338
Accrued product development costs			5,307,281
Salaries and bonus payable			2,452,568
Others (the amount of individual item	does not exceed 5% of the account balance)		5,209,391
		$	24,676,398

Statement of Other Current Liabilities

	Items		Amount
Temporary credits		$	273,289
Others (the amount of individual item does not exceed 5% of the account balance)			3,448
		$	276,737

(Continued)

104

ACER INCORPORATED

Statement of Other Non-Current Liabilities

December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Defined benefit liabilities		$	610,526
Guarantee deposits			13,553
		$	624,079

Statement of Lease Liabilities

Item	Description Buildings Other equipments	Lease terms 2019/12~2027/11 2020/09~2023/09	Discount rate Ending balance 0.90%~1.79% $ 119,655 1.10% 1,477 $ 121,132 $ 63,209 $ 57,923
Lease liabilities Lease liabilities Lease liabilities—current Lease liabilities—non-current

(Continued)

105

ACER INCORPORATED

Statement of Cost of Revenue

For the year ended December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

Item Cost of goods sold from purchase Beginning inventory Net purchase for the period Ending inventory Reclassified to property, plant and equipment Royalty for software and technology Write-downs of inventories ODM stock provision Others Cost of product development and repair and maintenance Cost of revenue	Amount	Amount
	Subtotal $ 18,061,147 143,109,622 (15,005,479) (10,237) 10,565,897 894,308 139,938 797,268	Total
		$ 158,552,464 640,334 $ 159,192,798

(Continued)

106

ACER INCORPORATED

Statement of Operating Expenses

For the year ended December 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

Item Salaries Depreciation Amortization Advertising and promotion expense Utilities expense Professional service expense Others	Selling expenses		Administrative expenses 579,991 63,454 20,064 1,279 6,968 541,866 69,547 1,283,169	Research and development expenses
	$ 1,381,565 57,937 319 454,169 14,798 662,698 201,086 $ 2,772,572			878,550 22,626 1,714 992 8,566 512,163 566,852 1,991,463

Statement of Financial Assets Measured at Fair Value through Profit or Loss – Current: Note 6(b). Statement of Receivable from Related Parties and Other Receivable from Related Parties: Note 7. Statement of Other Receivables: Note 6(f).

Statement of Changes in Property, Plant and Equipment: Note 6(i). Statement of Changes in Right-of-use Assets: Note 6(j). Statement of Changes in Investment Property: Note 6(k). Statement of Changes in Intangible Assets: Note 6(l). Statement of Financial Liabilities Measured at Fair Value through Profit or Loss – Current: Note 6(b). Statement of Payables to Related Parties and Other Payables to Related Parties: Note 7. Statement of Provisions – Current: Note 6(o).

Statement of Bonds Payable: Note 6(m). Statement of Deferred Tax Assets/Liabilities: Note 6(r). Statement of Revenue: Note 6(u). Statement of Other Operating Income and Expenses: Note 6(w). Statement of Other Income: Note 6(x). Statement of Other Gains and Losses: Note 6(x). Statement of Financial Costs: Note 6(x).