ACER — Audit Report / Information 2021

Nov 4, 2021

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Stock Code:2353

ACER INCORPORATED

Parent-Company-Only Financial Statements With Independent Auditors’ Report For the Years Ended December 31, 2021 and 2020

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 home.kpmg/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, 2021 and 2020, 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, 2021 and 2020, 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 of the parent-company-only financial statements in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements section of our report. We are independent of the Company in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (the “ Code” ), and we have fulfilled our other ethical responsibilities in accordance with the Code. 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, 2021 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.

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(f) for the details of the write-down of inventories.

Description of key audit matter:

Inventories are measured at the lower of cost and net realizable value. Due to the rapid innovation of the computech industry and fierce market competition, the Company’ s product price may fluctuate rapidly. Furthermore, the stocks for products and 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(g) for the evaluation of goodwill impairment.

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 estimation base 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 business forecasts, and performing a sensitivity analysis of 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 parent-company-only financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditors’ 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 auditing standards generally accepted in 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 aggregated, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent-company-only financial statements.

3-3

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain 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, 2022

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, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

December 31, 2021 Assets Amount % Current assets: 1100 Cash and cash equivalents (note 6(a)) $ 20,564,678 13 1110 Financial assets measured at fair value through profit or loss－ current (note 6(b)) 443,248 - 1120 Financial assets measured at fair value through other comprehensive income－current (note 6(c)) - - 1140 Contract assets－current (note 6(u)) - - 1170 Notes and accounts receivable, net (notes 6(d) & (u)) 6,335,764 4 1180 Notes and accounts receivable from related parties (notes 6(d) & (u) and 7) 37,518,525 23 1200 Other receivables, net (note 6(e)) 263,174 - 1210 Other receivables from related parties (notes 6(e) and 7) 664,582 - 130X Inventories (note 6(f)) 16,213,599 10 1470 Other current assets 245,025 - Total current assets 82,248,595 50 Non-current assets: 1517 Financial assets measured at fair value through other comprehensive income－non-current (note 6(c)) 6,690,542 4 1550 Investments accounted for using the equity method (note 6(g)) 67,951,695 42 1600 Property, plant and equipment (note 6(h)) 1,740,178 1 1755 Right-of-use assets (note 6(i)) 76,756 - 1760 Investment property (note 6(j)) 811,781 1 1780 Intangible assets (note 6(k)) 175,814 - 1840 Deferred income tax assets (note 6(r)) 3,100,650 2 1900 Other non-current assets 40,261 - 1980 Other financial assets－non-current (note 8) 160,566 - Total non-current assets 80,748,243 50 Total assets $ 162,996,838 100

December 31, 2020

Amount % 15,999,824 12 156,738 - 51,857 - 250 - 5,910,659 5 24,595,958 18 206,551 - 214,152 - 13,657,588 10 226,214 - 61,019,791 45 4,656,750 3 66,039,920 49 1,844,520 1 73,967 - 724,504 1 180,529 - 1,911,708 1 61,608 - 88,955 - 75,582,461 55 136,602,252 100

(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, 2021 and 2020

(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: 2540 Long-term debt (note 6(l)) 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(s)): 3110 Common stock 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity 3500 Treasury stock Total equity Total liabilities and equity	December 31, 2021		December 31, 2020 Amount % 943,985 1 79,131 - 41,949,644 31 503,171 - 18,406,873 13 763,946 1 742,153 1 1,680,371 1 60,449 - 3,650,911 3 433,513 - 69,214,147 51 3,300,000 3 - - 3,153,296 2 14,236 - 607,208 - 20,034 - 7,094,774 5 76,308,921 56 30,478,538 22 27,378,068 20 853,852 1 3,976,265 3 6,038,916 4 (5,517,452) (4) (2,914,856) (2) 60,293,331 44 136,602,252 100

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

5

(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, 2021 and 2020

(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(f) & (o) and 7) Gross profit before realized gross profit on sales to subsidiaries, associates and joint ventures 5920 (Unrealized) realized gross profit on sales to subsidiaries, associates and joint ventures Gross profit Operating expenses (notes 6(d), (h), (i), (j), (k), (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(g)) Total non-operating income and loss Income before taxes 7950 Income tax expenses (note 6(r)) Net Income Other comprehensive income (loss) (notes 6(g), (q), (r), (s) & (y)): 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 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 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	2021	% 100 (94) 6 - 6 (1) (1) (1) (3) - 3 - - - - 2 2 5 (1) 4 - - - - - (1) - (1) (1) 3 3.63 3.60	2020 Amount 209,586,473 (199,065,721) 10,520,752 2,440 10,523,192 (3,034,971) (1,165,863) (1,986,440) (6,187,274) 154,916 4,490,834 50,577 185,228 178,477 (65,529) 2,524,675 2,873,428 7,364,262 (1,334,975) 6,029,287 (5,026) 716,961 (35,859) 1,005 677,081 (1,855,833) - (1,855,833) (1,178,752) 4,850,535	% 100 (95) 5 - 5 (1) (1) (1) (3) - 2 - - - - 2 2 4 (1) 3 - - - - - (1) - (1) (1) 2 2.01 1.99
	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 $ $

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

6

(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, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2020 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 Cash distributed from capital surplus Adjustments of capital surplus for the cash dividends distributed to subsidiaries Purchase of treasury share Retirement of treasury share Share of changes in equity of associates Changes in ownership interests in subsidiaries Difference between consideration and carrying amount of subsidiaries disposed Reorganization under common control Stock option compensation cost of subsidiaries Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries Balance at December 31, 2020 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 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	Common stock $ 30,749,338 - - - - - - - - - (270,800) - - - - - - 30,478,538 - - - - - - - - - - - - - $ 30,478,538	Capital surplus			Retain	ed earnings					Othe	r	equity		Treasury stock (2,914,856) - - - - - - - - (361,943) 361,943 - - - - - - (2,914,856) - - - - - - - - - - - - - (2,914,856)	Total equity
				Legal reserve 587,602 - - - 266,250 - - - - - - - - - - - - 853,852 - - - 602,575 - - - - - - - - - 1,456,427	Special reserve 2,940,572 - - - - 1,035,693 - - - - - - - - - - - 3,976,265 - - - - 857,485 - - - - - - - - 4,833,750	Unappropriated retained earnings 2,668,082 6,029,287 - 6,029,287 (266,250) (1,035,693) (1,352,971) - - - - - - - (12) - (3,527) 6,038,916 10,897,427 - 10,897,427 (602,575) (857,485) (4,571,781) - - - - - 40,230 (348,520) 10,596,212	Total		Foreign currency translation differences		Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income		Remeasurements of defined benefit plans (287,903) - 45,016 45,016 - - - - - - - - - - - - - (242,887) - 11,917 11,917 - - - - - 2,760 - - - - (228,210)	Total (4,342,227) - (1,178,752) (1,178,752) - - - - - - - - - - - - 3,527 (5,517,452) - (3,078,534) (3,078,534) - - - - - 72 - - (40,230) 348,520 (8,287,624)
		28,152,962					6,196,256		(4,187,394) - (1,855,833) (1,855,833) - - - - - - - - - - - - - (6,043,227) - (2,766,226) (2,766,226) - - - - - 3,856 - - - - (8,805,597)		133,070					57,841,473
		- -					6,029,287 -				- 632,065					6,029,287 (1,178,752)
		-					6,029,287				632,065					4,850,535
											- - - - - - - - - - - - 3,527					- - (1,352,971) (1,014,728) 36,416 (361,943) - 76,443 43,604 174,404 (12) 110 -
											768,662					60,293,331
																10,897,427 (3,078,534)
																7,818,893
																- - (4,571,781) 70,119 (24,908) 60,177 29,880 1,005 - -
																63,676,716

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, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

2021 Cash flows from operating activities: Income before income tax $ 13,702,861 Adjustments for: Adjustments to reconcile profit or loss: Depreciation 140,120 Amortization 24,593 Net loss on financial assets measured at fair value through profit or loss 406 Interest expense 51,662 Interest income (42,434) Dividend income (287,772) Share of profits of subsidiaries, associates and joint ventures (4,953,384) Gain on disposal of equipment and intangible assets (657) Property, Plant and equipment reclassified to expenses 917 Unrealized (realized) profit on sales to subsidiaries, associates and joint ventures 45,415 Acquisition of financial asset by contribution of technical know-how - Other profits from investment (196) Total adjustments for profit or loss (5,021,330) Changes in operating assets and liabilities: Changes in operating assets: Derivative financial instruments measured at fair value through profit or loss (1,084,932) Contract assets 250 Notes and accounts receivable (425,105) Notes and accounts receivable from related parties (12,922,567) Inventories (2,563,051) Other receivables and other current assets (70,225) Changes in operating assets (17,065,630) Changes in operating liabilities: Notes and accounts payable 6,028,200 Payables to related parties 159,923 Refund liabilities (14,624) Other payables and other current liabilities 8,119,742 Provisions 92,572 Contract liabilities (69,619) Other non-current liabilities and long-term payables to related parties (24,630) Changes in operating liabilities 14,291,564 Cash provided by operations 5,907,465 Interest received 42,317 Income taxes paid (1,065,249) Net cash provided by operating activities 4,884,533

2020 7,364,262 154,282 44,041 1,268 65,529 (50,577) (185,228) (2,524,675) (1,181) - (2,440) (17,421) - (2,516,402) 650,016 1,758 (2,045,779) (2,632,315) (980,229) 3,436 (5,003,113) 13,931,231 437,903 833,999 2,652,811 25,313 (28,167) (84,826) 17,768,264 17,613,011 50,566 (13,457) 17,650,120

(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, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

2021 Cash flows from investing activities: Purchase of financial assets measured at fair value through other comprehensive income (2,175,540) Proceeds from disposal of financial assets at fair value through other comprehensive income 107,703 Proceeds from capital return and liquidation of financial assets measured at fair value through other comprehensive income 2,845 Additions to investments accounted for using the equity method (113,655) Proceeds from disposal of investments accounted for using the equity method 66,165 Proceeds from capital return of investments accounted for using the equity method - Additions to property, plant and equipment and investment property (40,378) Proceeds from disposal of equipment and intangible assets 895 Increase in receivables from related parties (412,338) Additions to intangible assets (7,810) Cash outflows from business demerger - Increase in assets recognized from costs to fulfill contracts with customers (2,438) Increase in other non-current financial assets and other non-current assets (59,894) Dividends received 560,248 Net cash flows provided by (used in) investing activities (2,074,197) Cash flows from financing activities: Increase in short-term borrowings 23,465,683 Decrease in short-term borrowings (23,465,683) Proceeds from issuing bonds 10,000,000 Repayment of long-term debt (3,300,000) Payment of lease liabilities (77,024) Decrease in loans from related parties (280,000) Cash dividends (4,571,781) Cash distributed from capital surplus - Purchase of treasury stock - Interest paid (16,677) Net cash flows provided by (used in) financing activities 1,754,518 Net increase in cash and cash equivalents 4,564,854 Cash and cash equivalents at beginning of period 15,999,824 Cash and cash equivalents at end of period $ 20,564,678

2020 (297,000) - 2,746 (43,365) 29,930 602,819 (43,789) 5,251 (84,106) (410) (27,718) (19,096) (5,096) 333,191 453,357 5,233,942 (5,233,942) - (2,500,000) (78,575) (813,000) (1,352,971) (1,014,728) (361,943) (66,019) (6,187,236) 11,916,241 4,083,583 15,999,824

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, 2021 and 2020

(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 primarily engages in marketing and sale of brand-name IT products, as well as providing electronic information services to its clients. The Company aims at the integrated applications of Internet of Things (IoT) and service-oriented technology to provide more products and integrated applications combining software, hardware and service for consumer and commercial markets.

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, 2022.

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. 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, 2021:

• ●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”

• ●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform— Phase 2”

• ●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”

• (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, 2022, would not have a significant impact on its financial statements:

• －

• ●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”

(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 Effective date per Interpretations Content of amendment IASB Amendments to IAS 1 The amendments aim to promote January 1, 2023 “Classification of Liabilities consistency in applying the requirements as Current or Non-current” by helping companies determine whether, in the statement of balance sheet, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments include clarifying the classification requirements for debt a company might settle by converting it into equity.

The Company is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its parent-company-only financial position and parent-company-only 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”

• ●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

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 Company’ s 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.

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.

(Continued)

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ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(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)

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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)

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ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

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

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

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)

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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)

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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 cover the deficiency).

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 and hedge accounting

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.

The Company designates certain derivative instruments as either fair value hedges or cash flow hedges. At inception of designated hedging relationships, the Company documents the risk management objective and strategy for undertaking the hedge. The Company also documents the economic relationship between the hedged item and the hedging instrument, including whether the changes in cash flows or fair value of the hedged item and hedging instrument are expected to offset each other.

1) Fair value hedge

Changes in the fair value of a hedging instrument that is qualified as a fair value hedge are recognized in profit or loss (or other comprehensive income, if the hedged item is equity instrument measured at FVOCI).

2) Cash flow hedge

When a derivative is designated and qualified as a cash flow hedging instrument, the effective portion of changes in the fair value is recognized in other comprehensive income and accumulated in “other equity —gains (losses) on hedging instruments”, and is limited to the cumulative change in fair value of the hedged item from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.

Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the same periods when the hedged item is recognized in profit or loss, and are included in the same account in the statements of comprehensive income as the hedged item.

(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.

(Continued)

17

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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.

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

(Continued)

18

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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.

(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.

(Continued)

19

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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.

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.

(Continued)

20

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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.

(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;

(Continued)

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ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• － 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.

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.

(Continued)

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ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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.

(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.

(Continued)

23

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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.

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.

(Continued)

24

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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.

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.

(Continued)

25

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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.

(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.

(Continued)

26

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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.

(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.

(Continued)

27

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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.

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

(Continued)

28

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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.

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.

(Continued)

29

ACER INCORPORATED Notes to Parent-Company-Only 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.

(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.

Due to rapid technological changes, 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(f) 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(g) for further description of the impairment of goodwill.

(Continued)

30

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

6. Significant account disclosures

(a) Cash and cash equivalents

Cash and cash equivalents
Cash on hand Bank deposits Time deposits	December 31, 2021 $ 514 18,814,366 1,749,798 $ 20,564,678	December 31, 2020
		514 8,405,609 7,593,701
		15,999,824

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

Financial assets mandatorily measured at fair value through profit or loss: Derivative instruments not used for hedging Foreign currency forward contracts Non-derivative financial assets Stocks listed on foreign markets Financial liabilities held for trading－current: Derivatives－Foreign currency forward contracts	December 31, 2021 $ 441,494 1,754 $ 443,248 $ (145,969)	December 31, 2020 154,578 2,160 156,738 (943,985)

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

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, 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

(Continued)

31

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

December 31, 2020

Contract amount (in thousands) USD 594,000 USD 434,729 USD 12,220 USD 76,759 USD 146,869 USD 117,419	Currency Maturity period USD / NTD 2021/01 EUR / USD 2021/01~2021/05 NZD / USD 2021/01~2021/05 AUD / USD 2021/04~2021/05 USD / JPY 2021/01~2021/07 USD / INR 2021/01~2021/07

(c) Financial assets measured at fair value through other comprehensive income

Equity investments measured at fair value through other comprehensive income Domestic listed stock Domestic unlisted stock Current Non-current	December 31, 2021 $ 6,533,121 157,421 $ 6,690,542 $ - 6,690,542 $ 6,690,542	December 31, 2020
		4,568,341 140,266
		4,708,607
		51,857 4,656,750
		4,708,607

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.

• (d) 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, 2021 $ 14,619 6,322,943 (1,798) 6,335,764 37,518,525 $ 43,854,289	December 31, 2020 16,502 5,896,378 (2,221) 5,910,659 24,595,958 30,506,617

(Continued)

32

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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 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) - - - - - (1,798) Loss allowance (1,925) (188) (101) - (7) - (2,221)
	Gross carrying amount Weighted- average loss rate $ 5,579,837 0.03% 704,925 0.00% 34,807 0.00% 14,418 0.00% 3,556 0.00% 19 0.00% $ 6,337,562 December 31, 2020
		Weighted- average loss rate 0.04% 0.04% 0.17% 0.00% 1.43% 0.00%

(Continued)

33

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

As of December 31, 2021 and 2020, 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, 2021 $ 34,606,560 2,053,424 389,904 222,040 163,924 82,673 $ 37,518,525	December 31, 2020
		19,989,238 1,509,349 1,941,296 711,999 358,961 85,115
		24,595,958

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

Balance at January 1 Impairment losses reversed Write-off Balanceat December 31 (e) Other receivables, net Other receivables from related parties (note 7(b)) Reimbursement of advertising expense Purchase discount Others Less: loss allowance	2021 2020 $ 2,221 3,613 (423) (1,051) - (341) $ 1,798 2,221 December 31, 2021 December 31, 2020 $ 664,582 214,152 157,508 19,474 85,860 171,381 19,956 16,551 927,906 421,558 (150) (855) $ 927,756 420,703

As of December 31, 2021 and 2020, except for the loss allowance fully provided for certain other receivables, no other loss allowance was provided for other receivables after management's assessment.

(Continued)

34

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(f) Inventories

Raw materials Finished goods and merchandise Spare parts Inventories in transit	December 31, 2021 $ 14,497,453 815,669 57,484 842,993 $ 16,213,599	December 31, 2020 12,581,388 649,950 84,461 341,789 13,657,588

For the years ended December 31, 2021 and 2020, the amounts of inventories recognized as cost of revenues were $214,865,824 and $183,044,036, respectively, of which $959,823 and $(309,033), respectively, was the write-down of inventories (reversal of write-downs). The write-downs arose from the write-down of inventories to net realizable value. The reversal of write-downs arose from the increase in the net realizable value or sale of inventories, and the circumstance of net realizable value of inventory to be lower than its cost no longer existed.

(g) 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, 2021 $ 67,870,064 10,030 71,601 $ 67,951,695	December 31, 2020 65,941,416 9,186 89,318
		66,039,920

• (i) For the information of subsidiaries, please refer to the consolidated financial statements for the year ended December 31, 2021.

• (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, 2021 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, 2021 Percentage of ownership Carrying amount - $ 10,030 55.00 71,601 $ 81,631	December 31, 2020	December 31, 2020
	Percentage of ownership - 55.00	Percentage of ownership - 55.00	Carrying amount
			9,186 89,318
			98,504

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.

(Continued)

35

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company’s share of net income (loss) of the associates: Net income Other comprehensive income Total comprehensive income The Company’s share of net loss of the joint venture: Net loss Other comprehensive income Total comprehensive loss	2021 $ 844 - $ 844 2021 $ (17,717) - $ (17,717)	2020 595 - 595 2020 (19,713) - (19,713)

(h) 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, 2021 Additions Disposals Reclassifications Balance at December 31, 2021 Balance at January 1, 2020 Additions Disposals Reclassifications Balance at December 31, 2020 Accumulated depreciation and impairment loss: Balance at January 1, 2021 Depreciation Disposals Reclassifications Balance at December 31, 2021 Balance at January 1, 2020 Depreciation Disposals Reclassifications Balance at December 31, 2020 Carrying amounts: Balance at December 31, 2021 Balance at December 31, 2020	Land $ 1,550,181 - - (122,442) $ 1,427,739 $ 963,542 - - 586,639 $ 1,550,181 $ 320,087 - - (41,210) $ 278,877 $ 126,540 - - 193,547 $ 320,087 $ 1,148,862 $ 1,230,094	Buildings 2,774,665 23,956 - (256,672) 2,541,949 1,413,224 14,080 - 1,347,361 2,774,665 2,223,737 24,503 - (240,734) 2,007,506 1,010,242 25,279 - 1,188,216 2,223,737 534,443 550,928	Computer and communication equipment 583,180 12,480 (63,175) 1,540 534,025 607,864 10,507 (52,714) 17,523 583,180 541,365 18,763 (63,034) (4,583) 492,511 567,890 22,785 (49,310) - 541,365 41,514 41,815	Other equipment 274,992 3,498 (2,678) 186 275,998 280,743 4,787 (8,840) (1,698) 274,992 253,309 9,725 (2,581) 186 260,639 249,816 13,199 (8,174) (1,532) 253,309 15,359 21,683	Total 5,183,018 39,934 (65,853) (377,388)
					4,779,711
					3,265,373 29,374 (61,554) 1,949,825
					5,183,018
					3,338,498 52,991 (65,615) (286,341)
					3,039,533
					1,954,488 61,263 (57,484) 1,380,231
					3,338,498
					1,740,178
					1,844,520

(Continued)

36

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(i) Right-of-use assets

Buildings Cost: Balance at January 1, 2021 $ 205,855 Additions 79,645 Disposals (110,572) Balance at December 31, 2021 $ 174,928 Balance at January 1, 2020 $ 208,362 Additions 13,115 Disposals (15,622) Balance at December 31, 2020 $ 205,855 Accumulated depreciation: Balance at January 1, 2021 $ 137,425 Depreciation 74,753 Disposals (110,508) Balance at December 31, 2021 $ 101,670 Balance at January 1, 2020 $ 76,672 Depreciation 76,375 Disposals (15,622) Balance at December 31, 2020 $ 137,425 Carrying amount: Balance at December 31, 2021 $ 73,258 Balance at December 31, 2020 $ 68,430	Other equipment 6,117 - - 6,117 3,332 6,117 (3,332) 6,117 580 2,039 - 2,619 1,973 1,939 (3,332) 580 3,498 5,537	Total 211,972 79,645 (110,572) 181,045 211,694 19,232 (18,954) 211,972 138,005 76,792 (110,508) 104,289 78,645 78,314 (18,954) 138,005 76,756 73,967

(Continued)

37

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(j) Investment property Cost or deemed cost: Balance at January 1, 2021 Additions Reclassifications Balance at December 31, 2021 Balance at January 1, 2020 Additions Reclassifications Balance at December 31, 2020 Accumulated depreciation and impairment loss: Balance at January 1, 2021 Depreciation Reclassifications Balance at December 31, 2021 Balance at January 1, 2020 Depreciation Reclassifications Balance at December 31, 2020 Carrying amounts: Balance at December 31, 2021 Balance at December 31, 2020 Fair value: Balance at December 31, 2021 Balance at December 31, 2020	Land $ 718,427 - 122,442 $ 840,869 $ 1,305,066 - (586,639) $ 718,427 $ 233,500 - 41,210 $ 274,710 $ 427,047 - (193,547) $ 233,500 $ 566,159 $ 484,927	Buildings Total 1,905,121 2,623,548 444 444 256,771 379,213 2,162,336 3,003,205 3,237,899 4,542,965 14,415 14,415 (1,347,193) (1,933,832) 1,905,121 2,623,548 1,665,544 1,899,044 10,337 10,337 240,833 282,043 1,916,714 2,191,424 2,839,053 3,266,100 14,705 14,705 (1,188,214) (1,381,761) 1,665,544 1,899,044 245,622 811,781 239,577 724,504 $ 1,242,984 $ 1,130,556

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, 2021 and 2020, the estimated discount rate used for calculating the present value of the future cash flows was 5.79% and 5.18%, respectively.

(Continued)

38

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(k) Intangible assets

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

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 $ Net balance at January 1, 2020: Cost $ Accumulated amortization and impairment loss Net balance at January 1, 2020 Additions Amortization Net balance at December 31, 2020 $ Net balance at December 31, 2020: 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 (1,337,199) 7,481 - (5,796) 1,685 1,344,680 (1,342,995) 1,685 1,344,680 (1,319,116) 25,564 - (18,083) 7,481 1,344,680 (1,337,199) 7,481	Software 670,320 (663,876) 6,444 7,810 (6,729) 7,525 669,019 (661,494) 7,525 669,968 (654,221) 15,747 410 (9,713) 6,444 670,320 (663,876) 6,444	Total 9,670,902 (9,490,373) 180,529 7,810 (12,525) 175,814 9,669,601 (9,493,787) 175,814 9,670,550 (9,462,635) 207,915 410 (27,796) 180,529 9,670,902 (9,490,373) 180,529

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

• (l) Long-term debt

Type of Loan Creditor Unsecured loan Bank of Taiwan Unused credit facilities Interest rate	Credit Line The term tranche of $4 billion may be withdrawn separately.	Term The interest is paid monthly starting September 2019. The principal will be repaid in lump sum amount when due in September 2022. Interest rate is adjusted quarterly.The principal was early repaid in May 2021.	December 31, 2021 - $ - $ 8,469,000 -	December 31, 2020
				3,300,000 3,300,000
				4,400,000
				0.90%

No financial covenants were required for the unsecured loan agreements with Bank of Taiwan. Please refer to note 6(x) for related interest expense with respect to the abovementioned bank loans.

(m) Bonds payable

Unsecured bonds payable	December 31, 2021 $ 10,000,000	December 31, 2020
		-

On April 27, 2021, the Company issued $5,000,000 of unsecured corporate bonds at par value. The bonds have 5-year term and are repayable on maturity. The bonds bears 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. The bonds have 5- year term and are repayable in two equal installments on August 26, 2025 and on maturity. The bonds bears 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, 2021 $ 43,432 $ 33,810	December 31, 2020
		60,449
		14,236

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

(Continued)

40

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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	2021 $ 891 $ 3,129 $ 33	2020
		1,889
		2,415
		36

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

Total cash outflow for leases	2021 $ 81,077	2020
		82,915

(iv) Major terms of leases

The Company leases buildings, vehicles, office equipment, and miscellaneous equipment with lease terms ranged from 1 to 6 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.

－ (o) Provisions current

Balance at January 1, 2021 Additions Amount utilized Effect of exchange rate changes Balance at December 31, 2021 Balance at January 1, 2020 Additions Amount utilized Effect of exchange rate changes Balance at December 31, 2020	Warranties $ 482,287 312,444 (214,101) (1,355) $ 579,275 $ 428,096 261,274 (205,475) (1,608) $ 482,287	Litigation 199,556 - - (5,726) 193,830 210,742 - - (11,186) 199,556	Environmental protection 60,310 46,402 (45,092) - 61,620 78,002 46,909 (64,601) - 60,310	Total 742,153 358,846 (259,193) (7,081) 834,725 716,840 308,183 (270,076) (12,794) 742,153

(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.

(Continued)

41

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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(j) for the information of investment property.

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, 2021 $ 82,025 36,591 22,939 13,424 11,160 35,394 $ 201,533	December 31, 2020
		96,074 65,075 33,130 24,199 15,134 22,607
		256,219

In 2021 and 2020, the rental income from investment property amounted to $104,831 and $124,335, 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	2021 $ 34,756 11,957 $ 46,713	2020
		40,879 25,798
		66,677

(Continued)

42

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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, 2021 $ 945,444 (226,570) $ 718,874	December 31, 2020 890,212 (314,957) 575,255

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.

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, 2021 and 2020, the balances of aforementioned pension funds were $226,570 and $314,957, 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.

(Continued)

43

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

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

2021 Defined benefit obligations at January 1 $ 890,212 Current service costs 8,750 Interest expense 5,521 Remeasurement on the net defined benefit liabilities: Actuarial loss (gain) arising from experience adjustments 49,502 Actuarial loss (gain) arising from changes in demographic assumption 19,838 Actuarial loss (gain) arising from changes in financial assumption 90,527 Benefits paid by the company and the plan (97,193) Liabilities assumed (transferred) due to the Group’s employee shift (21,713) Defined benefit obligations at December 31 $ 945,444 3) Movements in fair value of plan assets 2021 Fair value of plan assets at January 1 $ 314,957 Remeasurement on the net defined benefit liabilities Return on plan assets (excluding amounts included in net interest expense) 2,499 Benefits paid by the plan (95,960) Interest income 1,381 Contributions by the employer 27,103 Payments to related parties for transferred employees (1,196) Loss on curtailment (22,214) Fair value of plan assets at December 31 $ 226,570 4) Changes in the effect of the asset ceiling In 2021 and 2020, there was no effect of the asset ceiling. 5) Expenses recognized in profit or loss 2021 Current service costs $ 8,750 Net interest expense 4,140 Loss on curtailment 22,214 $ 35,104 Classified under operating expense $ 35,104

2020 892,600 9,394 8,730 (22,698) - 35,564 (49,125) 15,747 890,212 2020 346,535 7,840 (49,125) 2,311 24,701 (9,216) (8,089) 314,957 2020 9,394 6,419 8,089 23,902 23,902

(Continued)

44

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

6) Actuarial assumptions

The principal assumptions of the actuarial valuation were as follows:

Discount rate Future salary increases rate	December 31, 2021 December 31, 2020 % 0.625 % 0.625 % 4.000 % 3.000

The Company expects to make contribution of $24,203 to the defined benefit plans in the year following December 31, 2021. The weighted average duration of the defined benefit plans is 12.86 years.

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, 2021 and 2020.

Discount rate Future salary increasing rate	December	December	31, 2021		December 31, 2020	December 31, 2020
	0.25% Increase		0.25% Decrease		0.25% Increase	0.25% Decrease ) 24,828 (22,990)
	$ (24,802)		25,665		(23,919
	$ 24,284		(23,636	)	23,719

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, 2021 and 2020, the Company recognized pension expenses of $84,708 and $83,831, respectively, which had been contributed to the Bureau of Labor Insurance, in relation to the defined contribution plans.

(Continued)

45

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(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	2021 $ 2,869,233 12,571 2,881,804 (306,644) 230,274 (76,370) $ 2,805,434	2020 1,292,482 9,832 1,302,314 203,781 (171,120) 32,661 1,334,975

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	2021 $ 31,474	2020
		1,005

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 Undistributed earnings additional tax Change in unrecognized temporary differences Others	2021 $ 13,702,861 $ 2,740,572 12,571 - 230,274 (177,983) $ 2,805,434	2020 7,364,262 1,472,852 9,832 380 (171,120) 23,031 1,334,975

(ii) Deferred income tax assets and liabilities

1) Unrecognized deferred income tax assets

Loss associated with investments in subsidiaries Deductible temporary differences	December 31, 2021 $ 2,170,378 1,210,727 $ 3,381,105	December 31, 2020
		2,591,465 1,046,282
		3,637,747

(Continued)

46

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

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, 2021 and 2020. 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, 2021 $ 1,615,622	December 31, 2020
		2,102,538

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, 2021 $ 71,842 Recognized in profit or loss - Recognized in other comprehensive income 31,474 Balance at December 31, 2021 $ 103,316 Balance at January 1, 2020 $ 70,837 Recognized in profit or loss - Recognized in other comprehensive income 1,005 Balance at December 31, 2020 $ 71,842	Accrued expenses and costs 1,839,866 1,157,468 - 2,997,334 903,004 936,862 - 1,839,866	Total
		1,911,708 1,157,468 31,474
		3,100,650
		973,841 936,862 1,005
		1,911,708

Deferred income tax liabilities:

Balance at January 1, 2021 Recognized in profit or loss Balance at December 31, 2021 Balance at January 1, 2020 Recognized in profit or loss Balance at December 31, 2020	Income from investments accounted for using the equity method $ 2,864,350 892,336 $ 3,756,686 $ 2,043,256 821,094 $ 2,864,350	Others 288,946 188,762 477,708 140,517 148,429 288,946	Total
			3,153,296 1,081,098
			4,234,394
			2,183,773 969,523
			3,153,296

(iii) No income tax was recognized directly in equity in 2021 and 2020.

(Continued)

47

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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

• (s) Capital and other equity

• (i) Common stock

As of December 31, 2021 and 2020, the Company had issued 5,707 thousand units and 5,850 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, 2021 and 2020, the Company’ s authorized shares of common stock consisted of 4,000,000 thousand shares, of which 3,047,845 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 Repurchase and retirement of treasury stock 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		2021		2020 3,028,188 (27,080) 3,001,108 December 31, 2020 10,086,648 15,797,245 551,856 217,421 90,000 634,898 27,378,068
		3,001,108 -
		3,001,108
		December 31, 2021
	$ 10,086,648 15,797,245 621,975 247,301 90,000 671,100 $ 27,514,269

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, 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 current and prior-year 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 17, 2021, 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. Additionally, on July 9, 2021, the Company’ s shareholders approved an appropriation of legal reserve and special reserve of $602,575 and $857,485, respectively.

(Continued)

49

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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 $106,582 was distributed to the subsidiaries holding the Company’s common shares.

On March 18, 2020, the Company’s Board of Directors had approved the distribution of cash dividends amounting to $1,352,971 ($0.443909 per share), of which $20,809 was distributed to the subsidiaries holding the Company’s common shares. Additionally, on June 12, 2020, the Company’ s shareholders approved an appropriation of legal reserve and special reserve of $266,250 and $1,035,693, respectively, as well as the distribution of cash deriving from the capital surplus of $1,014,728 ($0.332932 per share), of which $15,607 was distributed to the subsidiaries holding the Company’s common shares.

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

(iv) Treasury stock

According to Article 28-2 of the Securities and Exchange Act, the Company purchased its own common shares of 27,080 thousand shares for an aggregate amount of $361,943 from March 13, 2020 to May 5, 2020 in order to maintain the Company's credit and the shareholders' equity. All such treasury stock was retired on September 28, 2020 and related legal and registration procedures have been completed.

As of December 31, 2021 and 2020, 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 ETEN (resulting from the acquisition of ETEN) were as follows (expressed in thousands of shares):

Common stock GDRs Common stock GDRs		December 31, 2021	December 31, 2021	December 31, 2021
		Number of shares		Market value
				664,084 704,324
				1,368,408
		Number of shares	Carrying amount $ 945,239 1,969,617 $ 2,914,856	Market value
		21,809 24,937 46,746		515,783 639,821
				1,155,604

(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 Balance at December 31	2021 $ (6,043,227) (2,766,226) 3,856 $ (8,805,597)	2020 (4,187,394) (1,855,833) - (6,043,227)

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

2021 Balance at January 1 $ 768,662 Generated by the Company: Change in fair value of financial assets measured at fair value through other comprehensive income (83,057) Disposal of financial assets measured at fair value through other comprehensive income (40,230) Share of other comprehensive income (loss) of subsidiaries (241,168) Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries 348,520 Changes in ownership interests in subsidiaries (6,544) Balance at December 31 $ 746,183 3) Remeasurement of defined benefit plans: 2021 Balance at January 1 $ (242,887) Change in the period (generated by the Company) (125,894) Share of other comprehensive income of subsidiaries 137,811 Changes in ownership interests in subsidiaries 2,760 Balance at December 31 $ (228,210)

2020 133,070 716,961 - (84,896) 3,527 - 768,662 2020 (287,903) (4,021) 49,037 - (242,887)

(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)	2021 $ 10,897,427 3,001,108 $ 3.63 2021 $ 10,897,427 3,001,108 27,180 3,028,288 $ 3.60	2020
		6,029,287
		3,006,934
		2.01
		2020
		6,029,287
		3,006,934 22,460
		3,029,394
		1.99

(u) Revenue from contracts with customers

(i) Disaggregation of revenue

Primary geographical markets: EMEA Pan America Asia Pacific		2021
	IT Hardware Products $ 82,901,974 63,536,596 64,632,708 $ 211,071,278	Others 10,565,525 10,234,184 14,957,469 35,757,178	Total
			93,467,499 73,770,780 79,590,177
			246,828,456

(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 $ 71,369,455 56,881,698 48,697,093 $ 176,948,246 December 31, 2021 $ 43,856,087 (1,798) $ 43,854,289 $ - $ 9,512			2020	Total 81,277,633 69,695,137 58,613,703 209,586,473 January 1, 2020 25,832,136 (3,613) 25,828,523 2,008 107,298
		IT Hardware Products	Others 9,908,178 12,813,439 9,916,610 32,638,227 December 31, 2020 30,508,838 (2,221) 30,506,617 250 79,131

(ii) Contract balances

Please refer to note 6(d) 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 2021 and 2020 that was included in the contract liability balance at January 1, 2021 and 2020, was $72,378 and $85,693, 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, 2021 and 2020, the Company accrued its remuneration to employees amounting to $720,000 and $480,000, respectively, and the remuneration for directors of $29,819 and $23,821, 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 2021 resolved by the Company’s Board of Directors on March 16, 2022 was $12,000 and that for 2020 resolved by the Company's Board of Directors on March 17, 2021 was $10,013, 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 $17,819 and $13,808 for 2021 and 2020, 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 Government grants	2021 $ 161,174 - $ 161,174	2020 154,471 445 154,916

• (x) Non-operating income and loss

• (i) Interest income

Interest income from bank deposits Other interest income (ii) Other income Dividend income	2021 $ 39,675 2,759 $ 42,434 2021 $ 287,772	2020
		50,247 330
		50,577
		2020
		185,228

(Continued)

54

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(iii) Other gains and losses 2021 Gain on disposal of equipment and intangible assets $ 657 Foreign currency exchange gain, net 377,680 Loss on financial assets and liabilities measured at fair value through profit or loss (475,157) Other investment gain 196 Others (note 7(b)-(v)) 62,700 $ (33,924) (iv) Finance costs 2021 Interest expense from bank loans and bonds payable $ 47,624 Interest expense on lease liabilities 891 Others 3,147 $ 51,662 (y) Financial instruments and fair value information (i) Categories of financial instruments 1) Financial assets December 31, 2021 Financial assets measured at fair value through profit or loss $ 443,248 Financial assets measured at fair value through other comprehensive income 6,690,542 Financial assets measured at amortized cost: Cash and cash equivalents 20,564,678 Notes and accounts receivable and other receivables (including receivables from related parties) 44,782,045 Other financial assets – non-current 160,566 $ 72,641,079		2020 1,181 1,635,993 (1,495,854) - 37,157 178,477 2020 55,668 1,889 7,972 65,529 December 31, 2020
		156,738 4,708,607 15,999,824 30,927,320 88,955
		51,881,444

(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) Long-term debt Bonds payable	December 31, 2021 $ 145,969 48,606,709 27,092,942 77,242 - 10,000,000 $ 85,922,862	December 31, 2020
		943,985 42,452,815 19,190,853 74,685 3,300,000 -
		65,962,338

• (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 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, 2021	December 31, 2021	Total 441,494 1,754 443,248 6,533,121 157,421 6,690,542 (145,969) Total 154,578 2,160 156,738 4,568,341 140,266 4,708,607 (943,985)
			Fair value
	Level 1 $ - 1,754 $ 1,754 $ 6,533,121 - $ 6,533,121 $ -		Level 2 441,494 - 441,494 - - - (145,969) December	Level 3 - - - - 157,421 157,421 - 31, 2020
			Fair value
			Level 2 154,578 - 154,578 - - - (943,985)	Level 3 - - - - 140,266 140,266 -

There were no transfers among fair value hierarchies for the years ended December 31, 2021 and 2020.

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

Balance at January 1 Total gains or losses: Recognized in other comprehensive income Additions Disposals Balance at December 31	Financial assets measured at fair value through other comprehensive income 2021 2020 $ 140,266 177,425 - (51,834) 20,000 17,421 (2,845) (2,746) $ 157,421 140,266
	2021 $ 140,266 - 20,000 (2,845) $ 157,421

(Continued)

57

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The abovementioned total gains or losses were included in “unrealized gain (loss) from financial assets measured at fair value through other comprehensive income”. The gains or losses attributable to the financial assets held on December 31, 2021 and 2020 were as follows:

2021 Total gains or losses: Recognized in other comprehensive income (included in “unrealized gain (loss) from financial assets measured at fair value through other comprehensive income”) $ -	2020 (51,834)

• 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, 2021	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
			December 31, 2020
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	$	46,168,006	40,257,347	5,910,659	-	-	5,910,659
			December 31, 2020
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	$	82,206,991	40,257,347	41,949,644	-	-	41,949,644

(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(d) for credit risk exposure of notes and accounts receivable. Other financial assets measured at amortized cost include other receivables (refer to note 6(e)) 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, 2021 and 2020, the Company had unused credit facilities of $33,798,870 and $31,954,737, respectively.

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

		Contractual
		cash flows	Within 1 year	1-2 years	2-5 years
December 31, 2021
Non-derivative financial liabilities:
Bonds payable		10,329,500	69,000	69,000	10,191,500
Notes and accounts payable (including related
parties)		48,606,709	48,606,709	-	-
Other payables (including related parties)		27,092,942	24,778,327	2,314,615	-
Lease liability		78,063	43,968	19,616	14,479
$		86,107,214	73,498,004	2,403,231	10,205,979
Derivative financial instruments:
Foreign currency forward contracts－settled in gross
Outflow	$	53,405,805	53,405,805	-	-
Inflow		(53,670,897)	(53,670,897)	-	-
$		(265,092)	(265,092)	-	-
December 31, 2020
Non-derivative financial liabilities:
Long-term debt carrying floating interest rates	$	3,350,287	29,700	3,320,587	-
Notes and accounts payable (including related
parties)		42,452,815	42,452,815	-	-
Other payables (including related parties)		19,190,853	17,077,540	2,113,313	-
Lease liability		75,547	61,183	12,881	1,483
$		65,069,502	59,621,238	5,446,781	1,483
Derivative financial instruments:
Foreign currency forward contracts－settled in gross
Outflow	$	54,032,247	54,032,247	-	-
Inflow		(53,236,042)	(53,236,042)	-	-
$		796,205	796,205	-	-

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), Indian Rupee (INR), Japanese yen (JPY), 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 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

(Continued)

62

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(in thousands)

		(in thousands)	(in thousands)	(in thousands)
Financial assets Monetary items USD INR JPY Financial liabilities Monetary items USD		December 31, 2020
	Foreign currency $ 1,239,609 7,102,905 14,070,248 2,007,450	Exchange rate 28.5080 0.3902 0.2761 28.5080	NTD 35,338,773 2,771,554 3,884,795 57,228,385	Change in magnitude Pre-tax effect on profit or loss % 1 353,388 % 1 27,716 % 1 38,848 % 1 572,284

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) Interest rate risk

The Company’s long-term debt carries floating interest rates, and the Company has not entered into interest rate swap contracts to convert floating interest rates to fixed interest rates. To manage the interest rate risk, the Company periodically assesses the interest rates of bank loans and maintains good relationships with financial institutions to obtain lower financing costs. The Company also strengthens the management of working capital to reduce the dependence on bank loans as well as the risk arising from fluctuation of interest rates.

Please refer to the note on liquidity risk management for details on interest rate exposure of the Company’s financial liabilities. The following sensitivity analysis is based on the risk exposure to non-derivative financial instruments on the reporting date. The sensitivity analysis assumes the liabilities carrying floating interest rates recorded at the reporting date had been outstanding for the entire period. The change in interest rate reported to the key management in the Company is based on 100 basis points (1%), which is consistent with the assessment made by the key management in respect of the possible change in interest rate.

If the interest rate had been 100 basis points (1%) higher/lower with all other variables held constant, pre-tax income for the years ended December 31, 2021 and 2020 would have been $0 and $33,000, respectively, lower/higher, which mainly resulted from the borrowings with floating interest rates.

(Continued)

63

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• 3) 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, 2021 and 2020, would have increased or decreased by $334,527 and $235,430, 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.

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

• (i) Please refer to note 6(i) for a description of acquisition of right-of-use assets through leases in 2021 and 2020.

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

Long-term debt Lease liabilities Loans from related parties Bonds payable Total liabilities from financing activities Long-term debt Lease liabilities Loan from ralated parties Total liabilities from financing activities	January 1, 2021 $ 3,300,000 74,685 595,000 - $ 3,969,685 January 1, 2020 $ 5,800,000 134,028 1,408,000 $ 7,342,028	Cash flows (3,300,000) (77,024) (280,000) 10,000,000 6,342,976 Cash flows (2,500,000) (78,575) (813,000) (3,391,575)	Non-cash changes of leasing - 79,581 - - 79,581 Non-cash changes of leasing - 19,232 - 19,232	December 31, 2021
				- 77,242 315,000 10,000,000
				10,392,242
				December 31, 2020
				3,300,000 74,685 595,000
				3,969,685

(Continued)

64

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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.

pany 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 Computer (M.E.) Limited (AME)	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
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 Computer Finland Oy (AFN)	Subsidiaries

(Continued)

65

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party Relationship with the Company Acer Computer 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 Aurion Tecnologia, S.A. de C.V. (Aurion) 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 Acer Infotech Pvt Ltd. (AIP) Subsidiaries 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 Global Limited (PGL) Subsidiaries Snoqualmie Company Ltd. (SCL) Subsidiaries Protrade Asia Limited (PAL) Subsidiaries Dakota Co., Ltd. (DCL) Subsidiaries Cascadia Resources Inc. (CRI) Subsidiaries Portrade Applied Materials Corp. (PAM) Subsidiaries

(Continued)

66

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
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
Acer Property Development Inc. (APDI)	Subsidiaries
Aspire Service & Development Inc. (ASDI)	Subsidiaries
Acer Gaming Inc. (AGM)	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)
Acer BeingWare Holding Inc. (ABH)	Subsidiaries
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
Beijing Altos Computing Ltd. (BJAC)	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
Xplova Inc. (XPL)	Subsidiaries
Acer AI Cloud Inc. (AIC, Formerly Pawbo Inc.)	Subsidiaries
Xplova (Shanghai) Ltd. (XPLSH)	Subsidiaries
Acer Cyber Security Incorporated (ACSI)	Subsidiaries
ACSI Cyber Security Academy Inc. (ACAD)	Subsidiaries
Acer China Venture Corp (ACVC)	Subsidiaries
Acer China Venture Partnership (ACVP)	Subsidiaries
Acer e-Enabling Data Center Incorporated (EDC)	Subsidiaries
Acer Third Wave Software (Beijing) Co. Ltd (TWPBJ)	Subsidiaries

(Continued)

67

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
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
Bluechip Infotech Incorporated (BLI)	Subsidiaries
Dingo Tech Pty Ltd. (DTP)	Subsidiaries
Digital Networks Australia Pty Ltd. (DNA)	Subsidiaries
Ingeniq Pty Ltd. (IGP)	Subsidiaries
Bluechip Infotech (NZ) Limited (BLNZ)	Subsidiaries
Soft Solutions Limited (SSL)	Subsidiaries
GadgeTek (Shanghai) Limited (GCN)	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 Asset Management Incorporated (AAM)	Subsidiaries
Smart Frequency Technology Inc. (SFT)	Joint venture
Aegis Semiconductor Technology Inc. (ATI)	Associates, liquidated on August
	26th, 2021

(Continued)

68

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
GrandPad Inc. (GrandPAD)	Associates
Piovision International Inc. (HPT)	Associates
ECOM Software Inc. (ECS)	Associates
Kbest Technology Inc. (KBest)	Associates
Erics Co., LTD (Erics)	The entity’ s chairman is the first-
	degree relatives of one of the key
	management of the Company
Acer Foundation	Substantive related party
Taurus Insterstellar Inc.	The entity’s chairman is the
	Company's director
Mu-Jin Investments Co., Ltd.	Same chairman with the Company

(Note) 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	2021 $ 93,323,424 73,481,903 58,522,673 128,715 - 89 $ 225,456,804	2020
		81,108,431 69,391,765 45,901,657 197,093 22 5,917
		196,604,885

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.

(Continued)

69

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(ii) Purchases

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

Subsidiaries	2021 $ 3,274,588	2020
		1,869,722

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

(iii) Operating costs and expenses

The operating costs and expenses related to services including management consulting, system maintenance, product development and design provided by related parties and the donation to related parties were as follows:

Accounts Cost of revenue Operating expense Operating expense Operating expense	Related-party categories 2021 Subsidiaries $ 400,493 Subsidiaries 85,976 Associates 1,745 Other related parties - $ 488,214	2020
		380,197 70,445 6,225 12,500
		469,367

(iv) Lease

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

Subsidiaries: ASDI AEB Others Associates Joint venture Other related parties	2021 $ 38,434 15,619 11,047 2,623 2,584 83 $ 70,390	2020
		38,434 17,436 9,190 2,491 1,668 78
		69,297

(Continued)

70

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(v) Service income

The service income related to the management consulting service and 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	2021 $ 39,187 48 3,223 165 $ 42,623	2020
		16,792 48 3,223 19
		20,082

(vi) Loans to related parties

The actual drawdown amounts were as follows:

Subsidiaries: AFE ITS AGM MPS ALT AGT Interest rate	December 31, 2021 $ 330,294 110,000 - 56,000 78,000 - $ 574,294 0.65%-0.85%	December 31, 2020
		- - 95,000 - 63,000 20,000
		178,000
		0.80%

Interest income related to loans to subsidiaries in 2021 and 2020 was $2,759 and $330, respectively.

(vii) Borrowings from related parties

The borrowings from related parties were as follows:

Subsidiaries: ADSC EDC AGT CCI ABH Others Interest rate	December 31, 2021 $ 100,000 - 70,000 100,000 - 45,000 $ 315,000 0.60%	December 31, 2020
		- 250,000 80,000 100,000 150,000 15,000
		595,000
		0.75%

(Continued)

71

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Interest expenses related to borrowings from subsidiaries in 2021 and 2020 were $3,042 and $7,822, respectively.

－ (viii) Organizational restructuring Intelligent solutions of air quality business

In May 2020, the Company acquired 3,222 thousand shares of API’ s common stock from ACTTW for a cash consideration of $43,365. Additionally, the Company spun off its intelligent solutions of air quality business in Taiwan to API on July 7, 2020 in accordance with Business Merger and Acquisition Act, Company Act and other relevant regulations. The carrying value of the net assets transferred was $22,282; in the meantime, the Company made a cash payment of $27,718 to acquire 5,000 thousand shares of API’ s common stock. The carrying amounts of the respective assets and liabilities transferred were as follows:

Assets:

Assets:
Inventories, net	$	23,581
Other current assets		2,519
Subtotal		26,100
Liabilities:
Accounts payables		(3,687)
Other payables		(131)
Subtotal		(3,818)
Net Assets	$	22,282

(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, AGT, HSNC and other subsidiaries. Related payables were included in “other payables to related parties” and “long-term payable to related parties”.

(Continued)

72

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(x) Receivables from related parties

(xi)	Accounts Related-party categories December 31, 2021 Notes and accounts receivable from related parties Subsidiaries: AAC $ 15,257,348 AJC 720,672 AEG 6,603,418 AIL 5,039,862 Others 9,897,209 Notes and accounts receivable from related parties Associates - Note and accounts receivable from related parties Other related parties 16 Other receivables from related parties Subsidiaries 89,811 Other receivables from related parties (financing) Subsidiaries 574,294 Other receivables from related parties Associates 10 Other receivables from related parties Joint venture 294 Other receivables from related parties Other related parties 173 $ 38,183,107 Payables to related parties Accounts Related party categories December 31, 2021 Accounts payable to related parties Subsidiaries $ 628,776 Accounts payable to related parties Associates 89 Other payables to related parties Subsidiaries 190,675 Other payables to related parties Other related parties 12,500 Other payables to related parties (financing) Subsidiaries 315,000 Long-term payable to related parties Subsidiaries 14,594 $ 1,161,634	December 31, 2020
		10,693,291 3,889,769 1,887,259 2,785,837 5,313,782 26,020 - 35,512 178,000 323 297 20
		24,810,110
		December 31, 2020
		503,171 - 143,946 25,000 595,000 20,034
		1,287,151

(Continued)

73

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (xii) Guarantees and endorsements provided to related parties

As of December 31, 2021 and 2020, the balances of guarantees and endorsements provided to subsidiaries were $21,183,939 and $21,503,281, respectively, and the amounts actually drawn were $4,285,862 and $5,012,962, respectively.

• (c) Compensation for key management personnel

Short-term employee benefits Post-employment benefits	2021 $ 283,252 3,187 $ 286,439	2020
		214,259 19,709
		233,968

8. Pledged assets

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

Assets	Pledged to secure Contract bidding, refundable deposits, and project fulfillment guarantee	December 31, 2021 $ 160,566	December 31, 2020
Cash in bank and time deposits			88,955

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 ordinary course of its business from time to time, the Company received notices from third parties asserting that Acer has infringed certain patents and demanded that Acer 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 the Company’ s business operations and finance, the litigation is inherently unpredictable. Therefore, the Company could incur judgments or enter into settlements of claims that could adversely affect its operating results or cash flows in a particular period.

• (c) As of December 31, 2021 and 2020, the Company had outstanding stand-by letters of credit provided by the banks totaling $6,720 and $14,227, respectively, for purposes of bids and contracts.

• (d) As of December 31, 2021 and 2020, the Company had issued promissory notes amounting to $35,247,050 and $36,809,506, respectively, as collateral for obtaining credit facilities from financial institutions.

10. Significant loss from disaster: None

(Continued)

74

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

11. Significant subsequent events:

The Company’s subsidiaries were exposed to the risk of recoverability of accounts receivables from customers in Russia and Ukraine due to the conflict between Russia and Ukraine occurred in the end of February 2022. As of March 16, 2022, the exposure of accounts receivable arising from revenue recognized in 2021 amounted to $1,032,000 approximately. The Company’s subsidiaries initially assessed that some of such accounts receivable might be impaired as they might not be recovered. The Company’ s subsidiaries have proactively managed to ensure the above-mentioned accounts receivable will be collected, and evaluated any ways to reduce the potential impairment loss such as insurance claim and other safeguard actions. The impairment loss of accounts receivable could not be estimated certainly at this stage as the conflict situation is still evolving. The impairment loss of accounts receivable in respect of the above-mentioned conflict, if any, will be recognized in 2022.

12. Others

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

follows:
		2021			2020
	Cost of revenue	Operating expenses	Total		Cost of revenue	Operating expenses		Total
Employee benefits: Salaries Insurance Pension Remuneration of directors Others Depreciation Amortization	- - - - - - 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		- - - - - - 16,245	2,738,139 156,719 111,744 36,821 175,306 154,282 27,796		2,738,139 156,719 111,744 36,821 175,306 154,282 44,041
Employees Directors not in concurrent employment Average employee benefits Average employee salaries Adjustment of average employee salaries Supervisor's remuneration							2020 1,627
							4
							1,961
							1,687
							-

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.

(Continued)

75

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

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, 2021, please refer to “Information on significant transactions” above.

• (d) Major shareholders:

According to the information provided by Taiwan Depository & Clearing Corporation, none of the shareholders holds over 5% of the Company’s stocks.

(Continued)

76

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

14. Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2021.

Acer Incorporated Financing provided to other parties For the year ended December 31, 2021

Table 1

Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2021
(Amounts in Thousands of New Taiwan Dollars)
No.	Financing Company	Counterparty	Financial Statement Account (Note 3)	Related Party	Maximum Balance for the Period	Ending Balance	Actually drawndown Amounts	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 0 0 0 0 1 2 2 2 2	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 APDI ABH ABH ABH ABH	APDI ABH CCI ADSC ASDI AGT API MPS MPS AMED EDC GTI ALT ALT AGM AGM AGM AFE The Company The Company ACTTW ABST ABST	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	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	40,000 15,000 4,000 25,000 38,000 100,000 25,000 35,000 65,000 15,000 400,000 50,000 100,000 105,000 300,000 295,000 300,000 332,833 40,000 150,000 30,000 40,000 38,000	30,000 - 4,000 15,000 35,000 100,000 25,000 35,000 65,000 - 400,000 - - 105,000 - 295,000 300,000 330,294 30,000 - - - 38,000	- - - - - - - 35,000 21,000 - - - - 78,000 - - 110,000 330,294 - - - - 37,800	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	- - - - - - - - - - - - - - - - - - - - - - -	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	- - - - - - - - - - - - - - - - - - - - - - -	6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 6,148,393 43,005 611,622 152,905 152,905 152,905	30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 30,741,967 43,005 611,622 611,622 611,622 611,622

～ 77 ～

No.	Financing Company	Counterparty	Financial Statement Account (Note 3)	Related Party	Maximum Balance for the Period	Ending Balance	Actually drawndown Amounts	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
2 2 2 2 2 2 2 2 3 4 4 4 4 5 6 6 6 7 8 9 9 9 10 10 11 11	ABH ABH ABH ABH ABH ABH ABH ABH CCI ADSC ADSC ADSC ADSC ACTTW ASDI ASDI ASDI AGT API AIZS AIZS AIZS GWI GWI AAH AAH	ABSG ABSG ABC ABC ABC ABST ABST AIC The Company The Company Bluechip Bluechip ABST ABSG The Company APDI APDI The Company The Company ACCQ ACCQ ACCQ AAC AAC AAC AAC	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	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	77,486 69,711 10,000 12,000 12,000 68,000 70,000 30,000 100,000 100,000 28,514 25,098 70,000 17,413 38,000 40,000 38,000 100,000 25,000 207,460 212,122 211,288 397,768 407,993 4,290,212 4,336,712	- 66,115 - 12,000 12,000 - 70,000 30,000 100,000 100,000 - 24,133 - - 35,000 - 38,000 100,000 25,000 - 209,109 211,288 - 395,967 - 4,208,880	- 65,328 - 12,000 - - 68,000 - 100,000 100,000 - 24,133 - - 20,000 - 14,000 70,000 25,000 - 209,109 - - 395,967 - 4,208,880	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	- - - - - - - - - - - - - - - - - - - - - - - - - -	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	- - - - - - - - - - - - - - - - - - - - - - - - - -	152,905 152,905 152,905 152,905 152,905 152,905 152,905 152,905 151,975 498,611 124,653 124,653 124,653 - 85,951 85,951 85,951 141,378 33,667 253,844 253,844 253,844 25,818,317 25,818,317 32,213,321 32,213,321	611,622 611,622 611,622 611,622 611,622 611,622 611,622 611,622 151,975 498,611 498,611 498,611 498,611 - 85,951 85,951 85,951 141,378 33,667 253,844 253,844 253,844 25,818,317 25,818,317 32,213,321 32,213,321

～ 78 ～

No.	Financing Company	Counterparty	Financial Statement Account (Note 3)	Related Party	Maximum Balance for the Period	Ending Balance	Actually drawndown Amounts	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
12 13 14 15 15 15 16 16 16 17 17 18 18 18 18	MPS AMED EDC Bluechip Bluechip Bluechip WLII WLII WLII PGL PGL PAL PAL PAL PAL	The Company The Company The Company BLI BLI DNA PGL PAM CRI CRI PAM CRI PAM PGL PST	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	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	1,000 1,000 400,000 1,141 5,593 33,559 83,598 69,665 139,330 14,846 14,846 9,360 9,360 9,360 9,360	1,000 - 50,000 - 5,538 33,229 83,598 69,665 139,330 14,782 14,782 9,320 9,320 9,320 9,320	- - - - 3,600 - 83,070 69,225 138,450 - - - - - -	0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 0%~4% 1%~1.12% 1%~1.12% 1%~1.12% 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	- - - - - - - - - - - - - - -	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	- - - - - - - - - - - - - - -	18,632 48,623 185,004 60,613 60,613 60,613 186,749 186,749 186,749 18,686 18,686 10,323 10,323 10,323 10,323	18,632 48,623 185,004 60,613 60,613 60,613 746,996 746,996 746,996 74,743 74,743 41,292 41,292 41,292 41,292

～ 79 ～

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.

• For AIZS, the aggregate financing amount shall not exceed 120% of net worth of AIZS.

• 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.

• The financing limits of APDI, ABH, CCI, ADSC, ACTTW, AGT, API, MPS, AMED 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.

• 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, ADSC and ACTTW shall not exceed 10% of net worth of ABH, ADSC and ACTTW.

• The financing limit of ASDI is 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.

• Both of the aggregate financing amount and the individual financing amounts of Bluechip shall not exceed 20% of net worth of Bluechip.

• The financing limits of 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.

Note 3: Net worth of the Company and subsidiaries listed above are the most recent audited or reviewed.

Note 4: The above transactions are eliminated when preparing the consolidated financial statements.

～ 80 ～

Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021

Table 2

Table 2	Table 2	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021	Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2021
		(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 6)	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 6)	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 1 2 2 3 4 4 4 5 5 5 6 6 6 7	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 AOZ AST AST AST WLII WLII WLII PGL PGL PGL PAM	AJC ATH Acer Asia Pacific subsidiaries AEG Acer EMEA subsidiaries ACN/ACD/ACW/AFN ATB Acer Pan America subsidiaries AMEX Acer Greater China subsidiaries AEB SMA ACA AIL ACCN/ACCQ/BJAC ABSG ITS ALT GTI HSNC HSNP HSNT HSNC/HSNI/HSNP/HSNT MPS EDC AAC AGM HSNI API AGT HSNV ASC AOSD AOC AOC ASTA ASTS ISU CRI PAM PST CRI PAL PAM PAL	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 4 2 2 2 2 2 2 2 2 2 4	12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 12,296,787 2,260,071 197,093 197,093 49,833 73,233 73,233 73,233 373,498 373,498 373,498 37,372 37,372 37,372 6,415	828,320 151,214 1,997,170 275,058 998,585 13,860 855,930 4,850,270 256,779 1,569,205 850,000 106,365 285,310 3,080,352 883,842 142,655 400,000 400,000 360,000 222,810 57,062 72,869 114,124 48,503 2,567,790 975,310 400,000 114,124 150,000 83,070 27,810 17,119 2,769 152,295 28,531 55,620 17,677 30,000 137,957 174,188 142,137 9,788 318,812 318,812 223,728	721,846 146,756 1,938,300 262,420 969,150 12,233 830,700 4,707,300 249,210 1,522,950 - 99,700 152,295 3,019,977 871,289 138,450 400,000 400,000 - 222,690 55,380 72,690 110,760 47,073 2,492,100 969,150 400,000 110,760 150,000 83,070 27,690 16,614 2,769 152,295 - 55,380 17,295 30,000 137,957 174,188 142,137 8,307 - - -	- 18,580 159,624 262,420 144,992 12,233 1,761 26,633 - 51,468 - 1,705 152,295 925,865 - - 104,195 - - - - 6,182 21,014 47,073 1,177,632 689,120 400,000 - - 83,070 - 16,614 - - - - - - 6,071 9,599 27,080 - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	1.17% 0.24% 3.15% 0.43% 1.58% 0.02% 1.35% 7.66% 0.41% 2.48% - 0.16% 0.25% 4.91% 1.42% 0.23% 0.65% 0.65% - 0.36% 0.09% 0.12% 0.18% 0.08% 4.05% 1.58% 0.65% 0.18% 0.24% 0.14% 0.05% 0.15% 0.43% 24.01% - 15.12% 4.76% 8.19% 7.00% 9.00% 8.00% 4.00% - - -	61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 61,483,935 2,260,071 642,038 642,038 124,582 183,083 183,083 183,083 933,745 933,745 933,745 93,429 93,429 93,429 16,038	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

～ 81 ～

No.	Endorsement/ Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Note 2 to Note 6)	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 6)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship (Note 1)
8 8 9	PAL PAL DCL	PAM PST PST	4 4 2	20,646 20,646 26,405	223,728 176,186 29,364	- - -	- - -	- - -	- - -	51,615 51,615 66,012			Y Y

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

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

• The endorsement/guarantee provided to individual guarantee party shall not exceed 30% of the most recent audited or reviewed net worth of AOI.

• 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 or reviewed net worth of AOZ.

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

• Note 6: The aggregate endorsement/guarantee amount provided shall not exceed 50% of the most recent audited or reviewed net worth of AST.

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

• Note 7: 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 or reviewed net worth of the entities listed above.

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

～ 82 ～

Acer Incorporated

Marketable securities held at reporting date

(Excluding investments in subsidiaries, associates, and joint controlled entities) December 31, 2021

Table 3

Table 3 December 31,	Table 3 December 31,	Table 3 December 31,	Table 3 December 31,	2021	2021	2021	2021	2021	2021	2021
				(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 2021		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 ADSC ADSC ADSC ASCBVI ASCBVI ASCBVI	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: Pell Bio-med Technology Co., Ltd. Stock: CellMax Life Inc. Stock: CT Ambi Investment and Consulting Inc. Stock: Wistron Stock: Pi Mobile Technology Inc. Stock: Benepet Biomedical Co., Ltd. ID5 Fund L.P. Stock: Trutag Stock: Gorilla	- - - - - - - - - - - - - - - - - - - - - - -	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 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 81,713 4,012 54,816 6,830 7,538 830 1,177 260 951 254 30 7,000 150 2,400 600 2,000 13,046 1,604 322 3,800 1,346 244	1,754 2,488,151 211,008 1,597,886 292,666 1,292,713 53,286 74,741 16,354 60,008 16,053 1,590 420,700 7,965 120,000 17,421 20,000 380,296 126,000 12,108 145,120 5,981 55,380	0.10% 4.15% 0.24% 1.89% 3.08% 3.48% 0.25% 0.17% 0.03% 0.14% 0.04% 0.02% 2.10% 0.02% 7.19% 1.02% 14.39% 0.45% 3.76% 18.92% 19.39% 0.33% 1.90%	1,754 2,488,151 211,008 1,597,886 292,666 1,292,713 53,286 74,741 16,354 60,008 16,053 1,590 420,700 7,965 120,000 17,421 20,000 380,296 126,000 12,108 145,120 5,981 55,380	572 81,713 4,012 54,816 6,830 7,538 830 1,177 260 951 254 30 7,000 150 1,200 600 2,000 13,046 1,604 322 3,800 1,346 244	0.21% 4.15% 0.24% 1.93% 3.08% 3.49% 0.25% 0.17% 0.03% 0.14% 0.04% 0.02% 2.10% 0.02% 7.24% 1.02% 14.39% 0.46% 3.77% 18.92% 19.39% 1.00% 1.91%	Note 1 Note 1 Note 1 Note 2 Note 1 Note 2 Note 2 Note 3 Note 4

～ 83 ～

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 2021	Maximum ownership during 2021	Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
ASCBVI ASCBVI AGT ABST ACTCQ ACTCQ AHN AHI AEB AEB ACSI AOI AOI AST AST	Stock: Locix Stock: BoniO Stock: RoyalTek Stock: PilotTV Holdings Equity of Thinputer Technology Corporation Equity of Shenmou Technology (Shenzhen) EUR Term Liquidity Fund USD Term Liquidity Fund Preferred Stock B: SKFHC Stock: Ambi Arts Preferred Stock B: SKFHC Stock: MPL Preferred stock C: FBFH Preferred stock C: FBFH Stock: Simple Mart Retail	- - - - - - - - - - - - - - -	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 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	1,000 463 1,015 2,676 - - - - 666 180 666 25 200 400 300	41,535 110,760 37,064 57,462 8,384 411 736,433 1,804,553 28,538 778 28,538 20,505 12,020 24,040 21,240	4.05% 12.20% 2.01% 19.18% 13.79% 19.99% - - 0.30% 18.00% 0.30% 15.06% 0.06% 0.12% 0.44%	41,535 110,760 37,064 57,462 8,384 411 736,433 1,804,553 28,538 778 28,538 20,505 12,020 24,040 21,240	1,000 463 1,015 2,676 - 960 - - 666 180 666 25 200 400 300	4.58% 14.07% 2.01% 19.18% 13.79% 19.99% - - 0.30% 18.00% 0.30% 15.06% 0.06% 0.12% 0.44%	Note 1 Note 1 Note 3 Note 3

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.

～ 84 ～

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, 2021

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 The Company	Fubon Bank (China) CNY SDRMBC 16030000 Fubon Bank (China) CNY SDRMBC 16030000 Common Stock of FocalTech Preferred stock C of FBFH	Financial assets measured at fair value through profit or loss— current 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	Fubon Bank (China) Co., Ltd. Fubon Bank (China) Co., Ltd. Centralized Securities Exchange Market Centralized Securities Exchange Market	None None None None	- - - -	- - - -	827,000 4,432,000 7,538 7,000	3,587,303 19,229,403 1,500,487 420,700	827,000 4,432,000 - -	3,609,549 19,317,616 - -	3,587,303 19,229,403 - -	22,246 88,213 - -	- - 7,538 7,000	- - 1,292,713 420,700

～ 85 ～

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, 2021

Table 5

Table 5	Table 5	Table 5	For the year ended December 31, 2021	For the year ended December 31, 2021	For the year ended December 31, 2021	For the year ended December 31, 2021	For the year ended December 31, 2021	For the year ended December 31, 2021	For the year ended December 31, 2021	For the year ended December 31, 2021	For the year ended December 31, 2021
			(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 The Company The Company The Company The Company WELL ALT	AAC ACA ACCQ ACNZ ACS AEG AFE AIL AIN AIN AJC AMI APHI APHI APX ASC ASSB ATH AVN AVN GrandPAD ALT AEB AOI AGT WLII AOSD GTI 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 Associate 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) Purchases (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases Purchases Purchases (Sales)	(73,481,903) (6,199,228) (11,420,047) (878,109) (2,965,691) (93,323,424) (574,495) (9,717,757) (7,765,861) 719,887 (1,580,432) (987,777) (1,989,819) 198,222 (144,075) (160,162) (4,444,131) (7,508,925) (246,007) 118,143 (128,715) 134,306 179,874 313,375 404,098 (1,667,404) 1,117,417 309,033 354,960 (134,306)	(29.77)% (2.51)% (4.63)% (0.36)% (1.20)% (37.81)% (0.23)% (3.94)% (3.15)% 0.31% (0.64)% (0.40)% (0.81)% 0.08% (0.06)% (0.06)% (1.80)% (3.04)% (0.10)% 0.05% (0.05)% 0.06% 0.08% 0.13% 0.17% (0.68)% 0.48% 0.13% 94.36% (30.91)%	OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA150 OA90 OA60 OA60 OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 EM120 OA60 EM30 EM60 OA60/EM60 EM45 OA60 OA60 EM45 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	15,257,348 2,246,002 808,111 229,474 690,477 6,603,418 117,976 5,039,862 2,614,602 (37,111) 720,672 180,379 605,612 (69,439) 24,763 13,235 559,237 1,499,048 34,721 (8,606) - (51,885) (31,766) (307,088) (130,458) 144,320 - - (100,886) 51,885	34.79% 5.12% 1.84% 0.52% 1.57% 15.06% 0.27% 11.49% 5.96% (0.08)% 1.64% 0.41% 1.38% (0.14)% 0.06% 0.03% 1.28% 3.42% 0.08% (0.02)% - (0.11)% (0.07)% (0.63)% (0.27)% 0.33% - - (97.85)% 42.74%

～ 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
AEB AEB AOI AOI AOI AGT WLII WLII WLII AOSD PAM GTI AAC AAC AAC AAC ACA ACA ACA ACCN ACCQ ACCQ ACCQ ACF ACF ACF ACG ACG ACG ACH ACH ACH ACNZ ACNZ ACS ACZ	The Company WLII AOA AOE The Company The Company The Company WELL AEB The Company CRI The Company AMEX ASC ATB The Company ACNZ Bluechip The Company ACCQ ACCN AOC The Company AEG AEG APX AEG AEG APX AEG AEG APX ACA The Company The Company AEG	Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow 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 Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary	(Sales) Purchases (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) Purchases (Sales) Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales)	(179,874) 276,499 (162,293) (359,355) (313,375) (404,098) 1,667,404 (354,960) (276,499) (1,117,417) (220,569) (309,033) (1,861,265) (646,615) (461,158) 73,481,903 (103,193) (165,789) 6,199,228 (273,941) 273,941 188,166 11,420,047 (354,977) 11,738,713 159,511 (613,935) 27,230,308 249,848 (102,053) 6,256,704 115,006 103,193 878,109 2,965,691 (112,569)	(2.90)% 5.47% (16.90)% (37.43)% (32.64)% (52.17)% 9.87% (1.97)% (1.54)% (100.00)% (23.66)% (83.48)% (2.61)% (0.91)% (0.65)% 100.00% (1.43)% (2.30)% 93.20% (67.89)% 1.76% 1.21% 73.48% (2.74)% 93.86% 1.28% (2.08)% 95.24% 0.87% (1.50)% 95.10% 1.75% 10.23% 87.04% 86.63% (16.86)%	EM30 EM60 OA90 OA60 EM60 OA60/EM60 EM45 EM45 EM60 OA60 TT60 OA60 OA60 OA60 OA60 OA90 OA60 EM30 OA60 OA60 OA60 EM60 OA60 OA60 OA60 OA60 OA60 OA60 OA45 OA60 OA60 OA60 OA60 OA60 OA60 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	31,766 (77,555) 187,371 119,025 307,088 130,458 (144,320) 100,886 77,555 - 123,406 - 246,628 69,240 87,068 (15,257,348) 407 30,254 (2,246,002) 83,394 (83,394) (72,841) (808,111) 1,172,814 (1,910,308) (13,030) 2,346,828 (6,705,578) (40,822) 439,617 (930,024) (18,307) (407) (229,474) (690,477) 13,765	1.73% (7.88)% 27.73% 17.61% 45.44% 47.58% (6.89)% 4.16% 3.20% - 42.91% - 2.48% 0.70% 0.88% (96.17)% 0.02% 1.83% (98.22)% 87.97% (5.05)% (4.41)% (48.94)% 23.44% (97.64)% (0.67)% 20.09% (99.01)% (0.60)% 22.13% (97.57)% (1.92)% (0.18)% (99.11)% (97.98)% 12.15%

～ 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
ACZ ACZ ACZ AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEH AFE AIB AIB AIB AIL AIN AIN AIN AIN AIT	APX APX ASIN ACF ACF ACG ACG ACH ACH ACZ AEH AIB AIB AIT AIT APX APX ASIN ASZ ASZ AUK CPY ENNL SER The Company AEG The Company AEG AEG APX The Company AMI AMI The Company The Company AEG	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 Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary	(Sales) Purchases (Sales) (Sales) Purchases (Sales) Purchases (Sales) Purchases Purchases Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) (Sales) Purchases (Sales) (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases Purchases Purchases (Sales) Purchases (Sales) Purchases (Sales)	(101,091) 236,158 (255,450) (11,738,713) 354,977 (27,230,308) 613,935 (6,256,704) 102,053 112,569 186,652 (5,833,518) 339,693 (5,843,573) 268,015 (1,138,756) 1,659,237 (28,132,758) (2,329,461) 104,885 (9,446,695) (1,428,061) 119,695 (1,619,494) 93,323,424 (186,652) 574,495 (339,693) 5,833,518 140,758 9,717,757 (189,477) 1,055,874 (719,887) 7,765,861 (268,015)	(15.14)% 38.33% (38.25)% (11.64)% 0.36% (27.00)% 0.63% (6.20)% 0.10% 0.12% 0.19% (5.78)% 0.35% (5.79)% 0.27% (1.13)% 1.70% (27.89)% (2.31)% 0.11% (9.37)% (1.42)% 0.12% (1.61)% 95.56% (70.17)% 89.37% (5.24)% 92.44% 2.23% 68.09% (2.30)% 13.16% (8.74)% 86.84% (4.17)%	OA60 OA90 OA30 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA30 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA150 OA60 OA90 OA60 OA90 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	27,877 (40,823) 21,615 1,910,308 (1,172,814) 6,705,578 (2,346,828) 930,024 (439,617) (13,765) (15,720) 796,243 (630,307) 669,913 (892,698) - (59,609) 6,054,479 349,445 (278,167) 2,209,507 368,248 (26,013) 348,429 (6,603,418) 15,720 (117,976) 630,307 (796,243) (23,452) (5,039,862) 24,192 - 37,111 (2,614,602) 892,698	24.60% (76.49)% 19.07% 9.30% (8.25)% 32.64% (16.50)% 4.53% (3.09)% (0.10)% (0.11)% 3.88% (4.43)% 3.26% (6.28)% - (0.42)% 29.47% 1.70% (1.96)% 10.76% 1.79% (0.18)% 1.70% (46.43)% 56.42% (93.11)% 28.32% (97.52)% (2.87)% (91.60)% 2.68% - 4.11% (99.59)% 34.32%

～ 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
AIT AJC AMEX AMI AMI AMI AOA AOC AOE APHI APHI APX APX APX APX APX APX APX APX APX ARU ASC ASC ASIN ASIN ASIN ASSB ASSB ASSB ASZ ASZ ATB ATH AUK AVN AVN	AEG The Company AAC AIN AIN The Company AOI ACCQ AOI The Company The Company ACF ACG ACH ACZ ACZ AEG AEG AIB The Company ASIN AAC The Company ACZ AEG ARU HSN SMA The Company AEG AEG AAC The Company AEG The Company The Company	Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow 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 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	Purchases Purchases Purchases (Sales) Purchases Purchases Purchases (Sales) Purchases (Sales) Purchases (Sales) (Sales) (Sales) (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases	5,843,573 1,580,432 1,861,265 (1,055,874) 189,477 987,777 162,293 (188,166) 359,355 (198,222) 1,989,819 (159,511) (249,848) (115,006) (236,158) 101,091 (1,659,237) 1,138,756 (140,758) 144,075 (132,317) 646,615 160,162 255,450 28,132,758 132,317 (122,135) (643,486) 4,444,131 (104,885) 2,329,461 461,158 7,508,925 9,446,695 (118,143) 246,007	94.03% 62.85% 94.11% (99.84)% 15.38% 80.16% 98.47% (84.91)% 99.33% (8.34)% 86.57% (4.67)% (7.32)% (3.37)% (6.92)% 3.38% (48.58)% 38.10% (4.12)% 4.82% (100.00)% 80.14% 19.85% 0.89% 98.48% 0.46% (2.36)% (12.43)% 95.42% (3.90)% 91.80% 4.68% 94.55% 93.73% (32.06)% 89.11%	OA60 OA60 OA60 OA90 OA60 OA90 OA90 EM60 OA60 OA60 OA60 OA60 OA45 OA60 OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA30 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	(669,913) (720,672) (246,628) - (24,192) (180,379) (187,371) 72,841 (119,025) 69,439 (605,612) 13,030 40,822 18,307 40,823 (27,877) 59,609 - 23,452 (24,763) 9,718 (69,240) (13,235) (21,615) (6,054,479) (9,718) 28,762 - (559,237) 278,167 (349,445) (87,068) (1,499,048) (2,209,507) 8,606 (34,721)	(96.16)% (99.98)% (97.23)% - (11.44)% (85.28)% (98.27)% 91.98% (100.00)% 33.61% (95.60)% 5.71% 17.90% 8.03% 17.90% (16.46)% 26.14% - 10.28% (14.62)% 100.00% (53.48)% (10.22)% (0.35)% (99.34)% (0.16)% 11.81% - (98.42)% 29.33% (96.85)% (3.35)% (93.35)% (99.90)% 17.77% (80.61)%

～ 89 ～

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
Bluechip CPY CRI ENNL GrandPAD HSN SER SMA	ACA AEG PAM AEG The Company ASSB AEG ASSB	Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Associate Fellow subsidiary Fellow subsidiary Parent/Subsidiary	Purchases Purchases Purchases (Sales) Purchases Purchases Purchases Purchases	165,789 1,428,061 220,569 (119,695) 128,715 122,135 1,619,494 643,486	6.62% 100.00% 26.44% (100.00)% 47.38% 38.85% 100.00% 18.08%	EM30 OA60 TT60 OA30 EM120 OA60 OA60 OA60	- - - - - - - -	- - - - - - - -	(30,254) (368,248) (123,406) 26,013 - (28,762) (348,429) -	(16.42)% (97.35)% (68.88)% 98.80% - (9.15)% (98.41)% -

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.

～ 90 ～

Acer Incorporated Receivables from related parties which exceed NT$100 million or 20% of the paid-in capital December 31, 2021

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 ABH AOI AOI AOI AGT WLII WLII PAM ADSC ADSC CCI	AAC ACA ACCQ ACNZ ACS AEG AFE AIL AIN AJC AMI APHI ASSB ATH ITS WLII ABST AOA AOE The Company The Company CRI WELL CRI ASDI The Company 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 Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary	15,257,348 2,246,606 808,111 229,474 697,621 6,603,418 448,270 5,039,862 2,614,602 722,364 180,379 605,612 560,163 1,499,048 111,490 144,811 105,988 187,371 119,025 307,088 201,387 138,801 100,886 123,406 169,060 100,314 100,314	5.66 3.25 17.88 4.87 5.07 21.98 1.87 2.48 5.11 0.69 10.33 4.48 8.18 7.33 2.92 10.36 - 0.78 3.02 4.02 6.20 - 4.59 6.13 - - -	- 813,274 - 151,625 280,528 - 8,029 - - 431,182 - 9,113 - 346,831 459 - - 148,733 62,404 2,025 23,417 - - - - - -	Under collection Under collection Under collection Under collection Under collection Under collection Under collection Under collection Under collection Under collection Under collection Under collection	8,662,642 1,477,610 898,553 218,534 329,171 7,485,642 92,656 1,008,839 1,822,071 120,538 57,462 521,626 437,352 1,280,001 1,135 144,811 - 11,586 40,120 307,088 23,417 - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - -	Note 2

～ 91 ～

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 AAC AAH ACCQ ACF ACG ACH AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AIB AIT AIZS ASC ASIN ASZ AUK GWI	AMEX ASC AAC The Company AEG AEG AEG ACF ACG ACH AIB AIT ASIN ASZ AUK CPY SER AEG AEG ACCQ AAC AEG AEG AEG AAC	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 Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary	246,628 411,324 4,213,197 139,088 1,172,814 2,346,828 439,617 1,910,308 6,705,578 930,024 796,243 669,913 6,054,479 349,445 2,209,507 368,248 348,429 631,314 892,698 212,068 153,973 402,953 278,439 846,791 395,967	3.94 8.78 - - 0.32 0.25 0.22 7.81 4.74 7.92 7.08 6.48 5.71 8.52 4.37 7.76 5.50 0.56 0.33 - 88.36 0.01 0.36 0.11 -	- - - - 30,634 47,014 - - 1,071,963 - - - - - 657,169 21,444 - - - - - - - - -	Under collection Under collection Under collection Under collection Under collection	- - - - 30,634 47,014 - - 958,073 - - - - - 668,472 21,444 - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - -

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.

～ 92 ～

Acer Incorporated

Names, Locations, and Related Information of Investees over which The Company Exercises Significant Influence December 31, 2021

Table 7

Table 7	Table 7	Table 7	Table 7	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
				(Amounts in Thousands of New Taiwan Dollars/Shares)
Investor	Investee	Location	Main Businesses and Products	Original Investment Amount		Balances as of December 31, 2021			Maximum ownership during 2021		Net Income (Loss) of the Investee	Share of profits/ losses of investee	Note
				December 31, 2021	December 31, 2020	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 ASBZ HSNC HSNC HSNC HSNC HSNC AST AST ADSC ADSC ADSC ADSC ADSC	ADSC Boardwalk AEH AHI Bluechip ASCBVI CCI ACSI WLII ATI AGT ABH ASBZ EDC AOI GTI HSNC SFT AST API AGM AAM VRE HSNT HSNI HSN HSNP HSNV ISU ASTA ECS APDI ASDI AGM Kbest	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 Taiwan Switzerland Thailand Indonesia Malaysia Philippines Vietnam Taiwan U.S.A. 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 Integrated circuit test service Research, design and sale of smart handheld products and peripheral 3C products Investment and holding activity Solutions provider of B2B virtual reality Data center and cloud services Sale, manufacture, import and export of commercial computer products, software, components, peripheral equipment and apparatus; repair and maintenance service of computer products Sale of peripheral 3C products Repair and maintenance 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 Research of solutions to B2B virtual reality Repair and maintenance of IT products Repair and maintenance of IT products Repair and maintenance of IT products Repair and maintenance of IT products Repair and maintenance of IT products Human resources and project service System integration service Business integration system Solar optronics business Hotel management service Agency of video game console and peripherals Development and manufacturing of radio and microwave equipment	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 85,419 6,741 4,192 20,000 14,000 40,851 29,577 500,000 - 129,293	1,143,730 41,496,383 2,464,262 6,230,208 32,988 5,658,111 1,299,817 1,139,390 730,210 815,583 6,800,751 2,128,004 395,981 1,595,356 333,155 45,000 150,000 132,000 82,577 93,365 - - 38,979 1,763 30,501 85,419 6,741 - 20,000 - 40,851 29,577 500,000 10,000 129,293	66,215 1,263,432 147 191,155 1,421 158,475 - 10,971 48,073 - 12,540 130,308 441 44,462 28,970 - 10,743 13,200 6,775 8,222 10,000 107,719 100 74 99 500 106 - 2,000 1 1,244 2,958 5,000 - 4,713	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 52.00 100.00 100.00 100.00 100.00 100.00 99.00 100.00 0.00 100.00 100.00 100.00 24.88 100.00 100.00 - 29.84	1,291,834 25,487,197 17,738,760 15,443,940 82,086 683,136 600,892 415,709 1,118,169 - 1,983,403 1,607,555 7,092 468,820 271,241 - 111,599 71,601 190,403 84,778 133,637 1,077,692 (144) 1,733 37,275 92,840 19,957 2,783 38,576 11,657 27,195 38,156 58,571 - 32,937	128,282 1,263,432 147 191,155 1,225 158,475 - 10,971 49,674 1,203 16,000 149,779 441 162,956 28,970 4,500 15,000 13,200 6,775 8,222 10,000 107,719 100 74 99 500 106 - 2,000 1 1,244 2,958 22,593 1,000 4,713	100.00 92.02 100.00 100.00 33.39 100.00 100.00 64.54 67.36 19.39 100.00 100.00 66.81 100.00 40.55 83.64 92.54 55.00 60.88 100.00 100.00 100.00 100.00 100.00 99.00 100.00 100.00 100.00 100.00 100.00 24.88 100.00 100.00 100.00 29.84	64,348 1,846,032 2,098,315 594,893 28,407 (24,306) 2,769 86,853 340,919 - 8,082 125,439 (475) 30,747 136,351 10,921 12,158 (32,213) 20,697 1,046 32,391 503 (229) (3,850) 5,022 9,178 25,145 (1,419) 17,409 (2,199) 32,327 1,184 10,932 32,391 26,851	64,348 1,698,627 2,098,315 594,893 7,665 (24,306) 2,769 56,052 204,569 - (3,922) 125,439 (317) 30,747 53,664 8,346 10,630 (17,717) 16,544 1,046 25,807 503 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 Associate 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 Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate

～ 93 ～

Investor	Investee	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balances as of December 31, 2021	Balances as of December 31, 2021	Balances as of December 31, 2021	Maximum ownership during 2021	Maximum ownership during 2021	Net Income (Loss) of the Investee	Share of profits/ losses of investee	Note
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
ASDI CCI WLII WLII WLII WLII WLII AEH ACTI Bluechip Bluechip Bluechip ABH ABH ABH ABH ABH ABH ABH ABH ABH ACTTW ACTTW ABST ACSI AOI AOI AOI AOI AOI AOI AOI AOI AOI	Kbest ECS HPT WELL ANT PBT PGL Boardwalk GrandPAD BLI DingoTech BLNZ AEB ACTTW MPS ALT ITS AMED ABC XPL AIC ABC ABST ABSG ACAD Bluechip AOA AOE AOTH AOJ AOSV AOGS HTW AOSD	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Islands British Virgin Islands U.S.A. Taiwan Australia New Zealand Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Germany Taiwan Australia U.S.A. the Netherlands British Virgin Islands Japan Taiwan Australia Hong Kong Taiwan	Development and manufacturing of radio and microwave equipment 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 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, software-defined 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 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 Cyber security training Sale of computer peripherals and software system Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment 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 Sale of displaydevice	3,997 - 26,820 10,000 203,052 750 337,906 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 0	3,997 - 26,820 10,000 203,052 750 152,983 3,333,032 350,477 1,000 - - 275,612 955,056 141,711 78,613 394,772 50,000 18,500 38,173 50,676 76,371 300,000 291,910 - 36,915 295,771 214,094 1,623 2,899 60,000 2,956 405 20,000	0 452 882 1,000 6,000 75 2,550 109,639 436 100 1 3,600 26,404 2,900 7,249 6,581 34,308 7,299 1,225 2,310 2,947 1,275 2,500 6,029 1,000 0 15,000 1 50 1 4,000 105 100 0	0.00 9.05 30.22 100.00 20.00 75.00 51.00 7.98 28.88 100.00 100.00 100.00 72.44 100.00 100.00 78.59 94.41 60.83 49.00 100.00 100.00 51.00 100.00 100.00 100.00 11.27 100.00 100.00 100.00 100.00 100.00 70.00 100.00 -	0 9,885 16,568 16,576 275,656 730 335,224 2,257,417 169,885 (1,613) 109,985 112,634 639,809 (32,918) 61,003 63,156 105,848 69,820 (6,157) 12,417 1,855 (6,409) (62,026) (21,806) 7,640 22,733 (154,426) (21,607) 267,627 27,769 38,554 11,907 701 -	286 452 882 1,000 6,000 75 2,550 109,639 436 100 1 3,600 32,000 42,694 7,249 6,581 34,308 5,000 1,989 2,310 2,947 2,071 30,000 6,029 1,000 570 15,000 1 50 1 4,000 105 100 2,500	1.81 9.05 30.22 100.00 20.00 75.00 51.00 7.98 32.01 100.00 100.00 100.00 87.79 100.00 100.00 86.59 94.41 100.00 49.00 100.00 100.00 51.00 100.00 100.00 100.00 15.54 100.00 100.00 100.00 100.00 100.00 70.00 100.00 100.00	26,851 32,327 9,019 9,841 320,613 58 143,530 1,846,032 (24,570) (1,620) 8,864 340 337,191 (23,969) 4,428 (11,515) (48,685) (33,482) (12,508) 194 (3,228) (12,508) (14,807) (16,637) (2,360) 28,407 10,317 6,576 20,153 1,663 (2,478) (4,230) 2 38,132	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 Associate Parent/Subsidiary Associate 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 Parent/Subsidiary Fellow subsidiaries Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary

～ 94 ～

Investor	Investee	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balances as of December 31, 2021	Balances as of December 31, 2021	Balances as of December 31, 2021	Maximum ownership during 2021	Maximum ownership during 2021	Net Income (Loss) of the Investee	Share of profits/ losses of investee	Note
				December 31, 2021	December 31, 2020	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
AOI AOI AOTH AOGS	MPL AMTC GCL AOAU	Australia Taiwan Hong Kong Australia	Sale of computer, apparatus system, and peripheral equipment 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	- 376,238 2,675 3	22,887 376,238 2,675 3	- 6,664 300 1	- 17.28 100.00 100.00	- 317,106 3,511 16,446	39 6,664 300 1	27.21 20.07 100.00 100.00	(57,752) 204,514 1 (2,718)	Note 1 Note 1 Note 1 Note 1	Associate 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.

～ 95 ～

Acer Incorporated Information on Investments in Mainland China For the year ended December 31, 2021

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, 2021	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Losses) of Investee	% of Ownership of Direct or Indirect Investment	Maximum ownership during 2021		Share of profits/ losses of investee	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					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.	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	83,070 41,535 55,380 4,153,500 138,450 26,139 8,324 13,069 21,782 65,347 4,356 19,168 19,973 13,845 161,322 450,261 17,999	1 2 2 2 1 1 1 1 1 1 1 1 1 1 2 2 2	83,070 - 55,380 4,264,260 (Note 2) 138,450 (Note 3) 8,324 (Note 3) 21,782 60,990 (Note 4) 4,356 19,168 19,973 13,845 161,322 450,261 -	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	83,070 3,283 - 2,819 55,380 15,766 4,264,260 112,908 138,450 (2,887) - (10,084) 8,324 (378) - 5,616 21,782 (1,681) 60,990 (18) 4,356 5 19,168 10,148 19,973 3,711 13,845 13,644 161,322 (172) 450,261 13,245 - 36,288		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	- - - - - - - - - - - - - - - - -	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	3,283 2,819 15,766 112,908 (2,887) (3,025) (378) 1,685 (1,681) (18) 5 10,148 3,711 13,644 (172) 13,245 12,868	(866) 213,726 1,210,825 4,446,417 30,927 7,357 5,324 8,496 2,593 9,270 8,901 93,292 25,708 34,569 15,333 249,166 128,892	- - - - - - - - - - - - - - - - -

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 $110,760 (US$ 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.

～ 96 ～

Investor Company Name	Accumulated Investment in Mainland China as of December 31, 2021 (Note 5)(Note 6)	Investment Amounts Authorized by Investment Commission, MOEA (Note 5)(Note 6)	Upper Limit on Investment Authorized by Investment
The Company and Subsidiaries	$5,242,655 (US$189,333,880)	$6,694,580 (US$241,768,884.5)	(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.

The above amounts were translated into New Taiwan dollars at the exchange rate of US$1=NT$27.69 as of December 31, 2021.

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

～ 97 ～

98

ACER INCORPORATED

Statement of Cash and Cash Equivalents

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

	Item	Description	Amount	Amount
Cash on hand			$		514
Bank deposits		Note 1		18,814,366
Time deposits (mature within a year)		Interest rate at 0.42%~2.85%; Note 2		1,749,798
			$	20,564,678
Note 1: Foreign currency deposits (in		thousands) and their exchange rates were as follows:
CNY $	2,005	CNY: NTD=1 : 4.3564
EUR $	2,121	EUR: NTD=1 : 31.4835
USD $	607,720	USD: NTD=1 : 27.6900
JPY $	494	JPY: NTD=1 : 0.2406
SEK $	224	SEK: NTD=1 : 3.0582
AUD $	481	AUD: NTD=1 : 20.1112
NZD $	95	NZD: NTD=1 : 18.9012
HKD $	0.2	HKD: NTD=1 : 3.5515

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

Note 2: Including USD $50,000 thousands and CNY $81,442 thousands.

(Continued)

99

ACER INCORPORATED

Statement of Notes and Accounts Receivable

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Item		Amount
Notes and accounts receivable:
Client A	$	1,072,628
Client B		773,607
Client C		634,494
Client D		630,632
Client E		569,183
Client F		476,730
Client G		321,626
Others (the amount of individual client does not exceed 5% of the account balance)		1,858,662
Less: loss allowance		(1,798)
	$	6,335,764

Statement of Inventories

Item Raw materials Finished goods and merchandise Spare parts Inventories in transit		Amount Carrying Amount Market Value Note $ 14,497,453 14,752,522 Market value at net realizable value 815,669 1,029,760 Market value at net realizable value 57,484 57,484 Market value at net realizable value 842,993 842,993 Market value at net realizable value $ 16,213,599 16,682,759
		Carrying Amount $ 14,497,453 815,669 57,484 842,993 $ 16,213,599

(Continued)

100

ACER INCORPORATED

Statement of Other Current Assets

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Prepaid expenses		$	100,459
Prepaid royalty			1,192
Input VAT			131,886
Current income tax assets			11,488
		$	245,025

(Continued)

101

ACER INCORPORATED

Statement of Changes in Investments Accounted for Using The Equity Method

For the year ended December 31, 2021

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

Name of Investee	Beginning Balance	Beginning Balance		Addi	tion	Decre	ase Amount (note) (48,251) - - - (2,128) - - (35,494) (98,450) - - (64,336) - - (947,710) - - - - (93,077) (44,513) (14,229) (9,725) - - - (1,357,913) - (212,986) (1,570,899)	Others (21,271) (204,494) 144,365 3,827 (2,080) 60,481 31,146 (716) (1,480) - 20,388 11,582 - (23,573) (6,944) 38 525 - - 2,826 (4,640) (73) - - - - 9,907 - - 9,907	Investment Profit (Loss) 64,348 1,698,627 2,098,315 594,893 7,665 (24,306) 2,769 56,052 204,569 - (3,922) 125,439 (317) 53,664 30,747 (1,691) (17) 5 (17,717) 8,346 10,630 16,544 1,046 25,807 503 844 4,952,843 - 541 4,953,384	Foreign Currency Translation Differences - (806,274) (1,533,694) (388,223) (7,124) (23,049) - - (1,125) - (201) 2,883 5 291 223 (39) (548) (21) - 151 (5,511) (114) - - - - (2,762,370) - - (2,762,370)	Ending balance	Ending balance		Market Valu V	e or Net Assets alue Total Amount Collateral 1,291,834 - 25,487,197 - 17,738,760 - 15,443,940 - 82,086 - 683,136 - 600,892 - 1,420,745 - 2,095,983 - - - 1,983,403 - 1,607,555 - 7,092 - 1,313,790 - 468,820 - 2,593 - 8,651 - 8,901 - 71,601 - - - 111,599 - 336,718 - 84,778 133,637 - 1,077,692 - - -
	Shares 68,000 1,263,432 147 191,155 1,225 158,475 - 10,756 48,173 1,203 10,000 130,308 32,212 28,970 152,181 - - - 13,200 4,500 15,000 6,775 8,222 - - -	Amount $ 1,297,008 24,799,338 17,029,774 15,233,443 75,335 670,010 566,977 395,867 1,014,655 - 1,894,059 1,531,987 7,404 240,859 1,392,504 4,285 8,691 8,917 89,318 68,517 155,633 188,275 93,457 - - 9,051 66,775,364 (423,002) (312,442) $ 66,039,920		Shares - - - - 196 - - 215 - - 2,540 - - - - - - - - 880 - - - 10,000 107,719 -	Amount - - - - 10,418 - - - - - 73,079 - - - - - - - - 13,237 - - - 107,830 1,077,189 - 1,281,753 - - 1,281,753	Shares (1,785) - - - - - - - (100) (1,203) - - (31,771) - (107,719) - - - - (5,380) (4,257) - - - - -					Shares 66,215 1,263,432 147 191,155 1,421 158,475 - 10,971 48,073 - 12,540 130,308 441 28,970 44,462 - - - 13,200 - 10,743 6,775 8,222 10,000 107,719 -	Percentage of Ownership % 100.00 % 92.02 % 100.00 % 100.00 % 28.10 % 100.00 % 100.00 % 64.54 % 58.93 % - % 100.00 % 100.00 % 66.81 % 40.55 % 100.00 % 100.00 % 93.33 % 100.00 % 55.00 % - % 66.27 % 52.00 % 100.00 % 100.00 % 100.00 -	Amount 1,291,834 25,487,197 17,738,760 15,443,940 82,086 683,136 600,892 415,709 1,118,169 - 1,983,403 1,607,555 7,092 271,241 468,820 2,593 8,651 8,901 71,601 - 111,599 190,403 84,778 133,637 1,077,692 9,895 68,899,584 (423,002) (524,887) 67,951,695	Unit Price (In Dollars) 19.51 20.17 120,672 80.79 57.77 4.31 - 129.50 43.60 - 158.17 12.34 16.08 45.35 10.54 - - - 5.42 - 10.39 49.70 10.31 13.36 10.00 -
ADSC Boardwalk AEH AHI Bluechip ASCBVI CCI ACSI WLII ATI AGT ABH ASBZ AOI EDC ACVC ACVP SEB SFT GTI HSNC AST API AGM AAM 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 cash dividend $310,568 distributed from the investees.

(Continued)

102

ACER INCORPORATED

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

－ Non-current

For the year ended December 31, 2021

(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 iD SoftCapital Inc. Stock of World Venture, Inc. Stock of Dragon Investment Co. Ltd. Stock of Venture Power 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 Stock of Amphastar Pharmaceuticals, Inc. 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	Beginning b	a	lance Amount $ 2,365,582 1,699,296 172,096 279,510 - - 2,845 - 120,000 17,421 - - - - - - - - - - - $ 4,656,750	Additio	n Amount - - - 9,732 - - - - - - 20,000 1,500,487 43,741 51,939 16,339 72,875 15,998 58,595 420,000 1,603 7,973 2,219,282	Decrea	se		Unrealized Gain (Loss) 122,569 (101,410) 38,912 3,424 - - - - - - - (207,774) - 1,347 15 1,866 55 1,413 700 (13) (8) (138,904)	Ending B	alance Amount Collateral 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
	Shares 81,713 54,816 4,012 6,600 24 8,505 1,884 15 1,200 600 - - - - - - - - - - -			Shares - - - 230 - - - - 1,200 - 2,000 7,538 77 830 260 1,177 254 951 7,000 30 150		Shares - - - - (24) (8,505) (1,884) (15) - - - - (77) - - - - - - - -	Amount - - - - - - (2,845) - - - - - (43,741) - - - - - - - -			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
							(46,586)

Statement of Other Non-current Assets

Item		Amount
Prepaid patent development expense	$	37,862
Assets recognized from costs to fulfill contracts		2,399
with customers
	$	40,261

(Continued)

103

ACER INCORPORATED

－ Statement of Other Financial Assets Non-current

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Tender deposits	and refundable deposits	$	160,566

Statement of Notes and Accounts Payable

	Vendor Name		Amount
Vendor A		$	5,297,260
Vendor B			5,191,207
Vendor C			4,872,917
Vendor D			3,578,616
Vendor E			3,284,976
Vendor F			2,681,616
Others (the amount of	individual vendor does not exceed 5% of the account balance)		23,071,252
		$	47,977,844

(Continued)

104

ACER INCORPORATED

Statement of Other Payables

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Royalty payable		$	5,007,354
Accrued for price difference			11,056,035
Accrued product development costs			4,600,042
Salaries and bonus payable			2,638,072
Others (the amount of individual item	does not exceed 5% of the account balance)		3,258,670
		$	26,560,173

Statement of Other Current Liabilities

	Items		Amount
Temporary credits		$	431,266
Others (the amount of individual item does not exceed 5% of the account balance)			3,673
		$	434,939

(Continued)

105

ACER INCORPORATED

Statement of Other Non-Current Liabilities

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Defined benefit liabilities		$	718,874
Guarantee deposits			26,512
		$	745,386

Statement of Lease Liabilities

Item	Description Buildings Other equipments	Lease terms 2016/07~2024/11 2020/09~2023/09	Discount rate Ending balance 0.90%~1.79% $ 73,720 1.10% 3,522 $ 77,242 $ 43,432 $ 33,810
Lease liabilities Lease liabilities Lease liabilities—current Lease liabilities—non-current

(Continued)

106

ACER INCORPORATED

Statement of Cost of Revenue

For the year ended December 31, 2021

(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 $ 14,334,074 216,764,293 (18,061,147) (7,040) 15,790,667 959,823 195,226 697,470	Total
		$ 230,673,366 776,707 $ 231,450,073

(Continued)

107

ACER INCORPORATED

Statement of Operating Expenses

For the year ended December 31, 2021

(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 738,645 61,724 9,757 1,344 9,720 484,483 153,510 1,459,183	Research and development expenses
	$ 1,784,023 57,393 1,586 440,063 14,680 580,905 447,095 $ 3,325,745			1,230,435 21,003 1,182 735 8,243 661,420 281,339 2,204,357

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(e).

Statement of Changes in Property, Plant and Equipment: Note 6(h).

Statement of Changes in Accumulated Depreciation of Property, Plant and Equipment: Note 6(h). Statement of Changes in Right-of-use Assets: Note 6(i).

Statement of Changes in Investment Property: Note 6(j). Statement of Changes in Intangible Assets: Note 6(k). Statement of Long-term Debt: Note 6(l). Statement of Bonds Payable: Note 6(m).

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 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).