Asus 2008 Annual Report Download - page 160

156
ASUSTEK COMPUTER INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
(3) Held-to-maturity financial assets
Debt securities for which the Company and subsidiaries have a positive intention and
ability to hold to maturity are categorized as held-to-maturity financial assets and are
carried at amortized cost under the effective interest method.
If objective evidence of impairment exists, the Company and subsidiaries recognize
impairment loss. If, in a subsequent period, the impairment loss decreases and the
decrease is clearly attributable to an event which occurred after the impairment loss was
recognized, the Company and subsidiaries shall reverse the impairment loss to the extent
that the carrying amount after the reversal would not exceed the amount (net of
amortization or depreciation) that would otherwise result had no impairment loss been
recognized in prior years.
(4) Bond portfolios with no active market
Bond portfolios with fixed or determinable payments that are not quoted in an active
market are carried at amortized cost using the effective interest method. Profit or loss
from changes in fair value is recognized at the time of write-off, impairment or
amortization.
(5) Financial assets carried at cost
Equity investments without reliable market prices, including emerging and other unlisted
stocks, are measured at cost. If objective evidence of impairment exists, the Company
and subsidiaries recognize impairment loss, which shall not be reversed in subsequent
periods.
After initial recognition, the Company and subsidiaries measure all financial liabilities at
amortized cost, except for financial liabilities at fair value through profit or loss which shall
be measured at fair value.
6. Allowance for doubtful accounts
Allowance for doubtful accounts is accrued based on estimated collectibility of notes
receivable, accounts receivable, other receivables, and accounts receivable-overdue.