Asus 2008 Annual Report Download - page 93

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ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
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.
2. Cash and cash equivalents
The Company considers 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.
3. Financial assets and financial liabilities
In accordance with the R.O.C. Statement of Financial Accounting Standard (‘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, financial assets carried at cost, or available-for-sale financial
assets, as appropriate. Financial liabilities are classified either as financial liabilities at fair
value through profit or loss, or financial liabilities at amortized cost.
The Company accounts for purchases and sales of financial assets and liabilities on the trade
date, or the date on which the Company commits 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.