Today (11th), BenQ Foundation and its appointed representative Peter Chen stepped down as AUO’s Corporate Director and Corporate Director Representative, respectively. After taking into account other factors, the investment in AUO will be recognized as “fair value through other comprehensive income or loss (FVOCI)” from the “equity method” from May 12, 2021.

After changing the accounting treatment to “FVOCI,” Qisda is no longer required to recognize investment profit or loss of AUO on a quarterly basis according to its shareholding ratio. This means that AUO’s income no longer affects the Company’s profit or loss or EPS, allowing the operating results after value transformation better reflect on the profit results.

The FVOCI accounting treatment means that the Company will evaluate its investment in AUO each quarter based on the market price and changes will be recorded under “other comprehensive income.” These evaluation figures do not affect Qisda’s quarterly earnings and earnings per share.