Asus 2008 Annual Report Download - page 162

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158
ASUSTEK COMPUTER INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
(5) When the Company and subsidiaries issue new shares to acquire another companys
shares, the carrying amount of the investment shall be either the fair market value of the
Companys and subsidiaries shares or the fair market value of the investees shares,
whichever is more objective and determinable. If the carrying amount will be over or
under the par value of the Companys and subsidiaries shares, the difference shall be
credited to additional paid-in capital or debited to additional paid-in capital (then debited
to retained earnings when additional paid-in capital is insufficient). The fair market value
of the listed shares of investee companies in which the Company and subsidiaries have
now obtained control shall be based on the quoted prices over a reasonable period
before or after the announcement of the acquisition is made.
10. Property, plant and equipment and assets held for lease
(1) Property, plant and equipment and assets held for lease are carried at cost.
Expenditures for regular repairs and maintenance are charged against operating income.
However, improvements that materially extend the useful lives of the assets are
capitalized.
(2) Depreciation is provided on the straight-line basis over the following useful lives:
Categories
Estimated Useful Lives
Buildings and equipment
3
-
60
years
Machinery and equipment
5
-
10
years
Warehousing equipment
8
years
Instrument equipment
3
-
20
years
Transportation equipment
3
-
20
years
Office equipment
3
-
20
years
Miscellaneous equipment
3
-
20
years
(3) Fully depreciated property, plant and equipment which are still in use shall be
depreciated based on the remaining salvage value over the remaining estimated
economic lives.
(4) Gain on disposal of assets is credited to current income as non-operating income, while
loss on disposal of assets is charged against current income as non-operating expense.