Acer 2007 Annual Report Download - page 100

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97
2006 2007
Fair value Fair value
Carrying
amount
Public quoted
price
Valuation
amount
Carrying
amount
Public quoted
price
Valuation
amount
NT$ NT$ NT$ NT$ NT$ NT$
Non-derivative financial instruments
Financial assets:
Available-for-sale financial assetsЁcurrent 13,805,760 13,805,760 - 2,852,061 2,852,061 -
Financial assets carried at cost 4,837,842 see below (b) see below (b) 3,142,121 see below (b) see below (b)
Available-for-sale financial assetsЁnoncurrent 2,384,234 2,384,234 - 3,370,847 3,370,847
Refundable deposits (classified as “other
financial assets”)
813,807 - 813,807 687,109 - 687,109
Noncurrent receivables (classified as “other
financial assets”)
480,537 - 480,537 274,284 - 274,284
Financial liabilities:
Long-term debt 168,627 - 168,627 16,790,876 - 16,790,876
Derivative financial instruments
Financial assets:
Foreign currency forward contracts 162,498 - 162,498 250,197 - 250,197
Foreign currency options 4,008 - 4,008 4,983 - 4,983
Financial liabilities:
Foreign currency forward contracts 1,478,113 - 1,478,113 1,461,335 - 1,461,335
Foreign currency options 45,089 - 45,089 593 - 593
(b) The following methods and assumptions were used to estimate the fair value of each class
Ё
(b) The following methods and assumptions were used to estimate the fair value of each class of
nancial instruments:
(i) Available-for-sale nancial assets－current and noncurrent
Publicly quoted market prices are used as fair value.
(ii) Financial assets carried at cost
Financial assets carried at cost were privately held stock. The fair value of privately held
stock was unable to be determined because it was not traded in the public market.
(iii) Refundable deposits
The estimated fair value of refundable deposits is determined as the discounted present
value of expected future cash ows, which is similar to book value.
(iv) Noncurrent receivables
The fair values are their present value discounted at the market interest rate.
(v) Long-term debt
Long-term debt is obtained at oating interest rates which are calculated based on prevailing
market rate adjusted by the Company’s credit spread. The carrying value of long-term debt
approximates the market value.
(vi) Derivative nancial instruments
The fair values of the Consolidated Companies’ derivative financial instruments are
estimated using a valuation method. The assumptions used should be the same as those
used by nancial market traders when quoting their prices, which are readily available to the
Consolidated Companies.