Asus 2008 Annual Report Download - page 135

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131
ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
(3) Credit risk
The Company trades only with established and creditworthy third parties. It is the
Company's policy that all customers who wish to trade on credit terms are subject to
credit verification procedures. In addition, receivable balances are monitored on an
ongoing basis, which consequently minimizes the Company's exposure to bad debts.
With respect to credit risk arising from the other financial assets of the Company, which
comprise of cash and cash equivalents, available-for-sale financial assets and certain
derivative instruments, the maximum exposure to credit risk arising from the default of
counter-parties is limited to the carrying amount of these instruments.
Although the Company trades only with established third parties, it will nevertheless
request collateral to be provided by third parties with less favorable financial positions.
(4) Liquidity risk
The Company's objective is to maintain a balance of funding continuity and flexibility
through the use of financial instruments such as cash and cash equivalents, bank loans
and bonds.
2. FINANCIAL INSTRUMENTS
(1) Financial instruments consist of the following:
December 31, 2008
Financial instruments
Book value
Fair value
Non-derivative financial instruments
Assets
Cash and cash equivalents
$10,778,309 $10,778,309
Financial assets at fair value through profit
or loss-current
8,344,301 8,344,301
Available-for-sale financial assets-current
252,588 252,588
Receivables-net
46,610,159 46,610,159
Available-for-sale financial assets
-noncurrent
3,709,117 3,709,117
Financial assets carried at cost-noncurrent
79,210 (Note)
Refundable deposit
94,579 94,579