Asus 2008 Annual Report Download - page 159

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ASUSTEK COMPUTER INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
4. Cash and cash equivalents
The Company and subsidiaries consider all short-term, highly liquid investments that are
readily convertible to known amounts of cash, and so near their maturity date that they are
subject to an insignificant risk of changes in value resulting from fluctuations in interest rates ,
to be cash equivalents. Upon disposal, the cost of cash equivalents is determined on an
individual basis.
5. Financial assets and financial liabilities
In accordance with the R.O.C. SFAS No. 34 “Accounting for Financial Instruments” and the
“Criteria Governing the Preparation of Financial Reports by Securities Issuers”, financial
assets are classified as financial assets at fair value through profit or loss, available-for-sale
financial assets, held-to-maturity financial assets, bond portfolios with no active market or
financial assets carried at cost, as appropriate. Financial liabilities are classified as financial
liabilities at fair value through profit or loss or financial liabilities carried at cost.
The Company and subsidiaries account for purchases and sales of financial assets and
liabilities on the trade date, or the date on which the Company and subsidiaries commit to
purchase or sell the asset or 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
These financial assets are subsequently measured at fair value with changes in fair value
recognized in profit and loss. Stocks of listed companies, convertible bonds and
close-end funds are measured at closing prices on the balance sheet date. Open-end
funds are measured at the unit price of the net assets on the balance sheet date.
(2) Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are
designated as available-for-sale or not classified as financial assets at fair value through
profit or loss, held-to-maturity financial assets, or 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 from the translation of
monetary financial assets denominated in foreign currencies, is recognized in a separate
component of stockholders’ equity until such investment is reclassified or disposed of,
upon which the cumulative gains or losses previously charged to stockholders’ equity
will be transferred to current period’s profit or loss.