Asus 2008 Annual Report Download - page 158

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ASUSTEK COMPUTER INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
A. Ability to have more than half of investee’s voting rights with agreement of other
investors.
B. Ability to control the financial, operating and human resources functions of investee
according to regulations or agreements.
C. Authority to appoint more than half of the directors of the board (or its equivalent) to
control the board (or its equivalent).
D. Authority to dominate more than half of the voting right of the board (or its
equivalent) to control the board (or its equivalent).
E. Other circumstances that prove the controlling power.
3. Foreign currency transactions and translation of financial statements in foreign currencies
Transactions of non-derivative financial instruments denominated in foreign currencies are
recorded in New Taiwan Dollars at the rates of exchange rates in effect when the
transactions occurred. Translation gains or losses arising from the settlements of the
monetary assets and liabilities denominated in foreign currencies are included in profit or loss
in the year of actual settlement.
Monetary assets and liabilities denominated in foreign currencies are remeasured on the
balance sheet date using the exchange rates in effect as on that date, with related exchange
gains and losses included in the statements of income.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at
fair value with changes in fair value charged to stockholders’ equity are remeasured at the
exchange rate prevailing on the balance sheet date, with related exchange gains or losses
recorded as cumulative translation adjustment in stockholders’ equity. Non-monetary assets
and liabilities denominated in foreign currencies that are measured at fair value with changes
in fair value recognized in profit or loss, are remeasured at the exchange rate prevailing on
the balance sheet date, with related exchange gains or losses recorded in the statements of
income. Non-monetary assets and liabilities denominated in foreign currencies that are
measured at cost are remeasured at historical exchange rate.
Long-term investments in foreign investees, which are accounted for under the equity
method, are stated on the basis of stockholders’ equity in the financial statements of
investees in foreign currencies. Translation gains or losses from long-term investments are
recognized as cumulative transition adjustment in the stockholders’ equity.