Securities issued by a subsidiary that enable their holders to obtain the subsidiary’s common stock shall be  included in computing the subsidiary’s earnings per share data. Those per-share earnings of the subsidiary  shall then be included in the consolidated earnings per share computations based on the consolidated  Company’s holding of the subsidiary’s securities.  The Company maintains its accounts and expresses its consolidated financial statements in New Taiwan  dollars. For convenience only, US dollar amounts presented in the accompanying consolidated financial  statements have been translated from New Taiwan dollars as set forth in the statistical release of the Federal  Reserve Board as of December 30, 2010, which was NT$29.14 to US$1.00. The convenience translations  should not be construed as representations that the New Taiwan dollar amounts have been, could have been,  or could in the future be, converted into U.S. dollars at this or any other rate of exchange.  In March 2007, the ARDF issued an Interpretation 96-052 that requires companies to recognize bonuses paid  to employees, directors and supervisors as an expense rather than an appropriation of earnings beginning  from January 1, 2008. For purposes of the statement of cash flows, such bonuses represent appropriations of  the earnings from prior years and have been classified as financing activities for 2007, 2008. Beginning from  2009, such bonuses are classified as operating activities for purposes of the statement of cash flows when  paid.  The Company adopted the newly-revised Statement of Financial Accounting Standards No. 10, “Accounting  for Inventories,” (“SFAS No. 10”) beginning from January 1, 2009, which requires inventories to be stated at  the lower of cost (weighted-average cost) or net realizable value item by item, except for those that may be  appropriate to group items of similar or related inventories. The inventory-related incomes and expenses shall  be classified as operating cost.  The Company early adopted the Statement of Financial Accounting Standards No. 41 “Operating Segments”  (“SFAS No. 41”) starting from September 1, 2009. This Statement supersedes the Statement of Financial  accounting Standards No. 20 “Segment Reporting”. This new statement allows users of financial statements  to see performance of segments from the viewpoint of the chief operating decision maker.  4. EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES  3. US DOLLAR AMOUNTS  5. CASH AND CASH EQUIVALENTS  December 31 2009 2010 NT$ NT$ (In Millions) Cash Cash on hand $  142  $  125  Bank deposits 8,199  7,047  Negotiable certificate of deposit, annual yield rate - ranging from  0.25%-0.37% and 0.52%-0.91% for 2009 and 2010,  respectively 63,350  54,265  71,691  61,437  (Continued)  F-27