Asus 2007 Annual Report Download - page 94

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90
ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements (Unaudited)
(In New Taiwan thousand dollars unless otherwise stated)
6
3. Financial assets and financial liabilities
The Company adopted the R.O.C. SFAS No. 34 “Accounting for Financial Instruments”
and the “Criteria Governing the Preparation of Financial Reports by Securities Issuers”,
where its financial assets are classified as either financial assets at fair value through profit
or loss, financial assets evaluated by cost method, or available-for-sale financial assets, as
appropriate. Financial liabilities are classified either as financial liabilities at fair value
through profit or loss, or financial liabilities at amortized cost.
The Company’s purchases and sales of financial assets and liabilities are recognized on the
trade date, or the date on which the Company commits to purchase or sell the asset and
liability. When financial assets and financial liabilities are recognized initially, they are
measured at fair value, plus, in the case of investments that are not at fair value through
profit or loss, directly attributable transaction costs.
(1) Financial assets at fair value through profit or loss:
Financial assets are subsequently measured at fair value and changes in fair value are
recognized in profit and loss. Stocks of listed companies, convertible bonds and
close-end funds are measured at closing prices at balance sheet date. Open-end funds
are measured at the unit price of the net assets at the balance sheet date.
(2) Financial assets evaluated at cost:
Equity investments without reliable market prices, including unlisted and emerging
stocks, are measured at cost. If objective evidence of impairment exists, the Company
recognizes impairment loss, which shall not be reversed in subsequent periods.
(3) Available-for-sale financial assets:
Available-for-sale financial assets are non-derivative financial assets neither classified as
financial assets held for trading, nor held-to-maturity financial assets, loans and
receivables. Subsequent measurement is measured at fair value. The gain or loss
arising from the change in fair value, excluding impairment loss and exchange gain or
loss, is recognized as a separate component of stockholders’equity until such
investment is reclassified or disposed of, upon which the cumulative gain or loss
previously charged to stockholders’equity will be transferred to current gain or loss.
After initial recognition, the Company measured all financial liabilities at amortized cost,
except for financial liabilities at fair value through profit or loss which liabilities shall be
measured at fair value.