Asus 2008 Annual Report Download - page 94

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ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
(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) 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
recognizes impairment loss, which shall not be reversed in subsequent periods.
(3) 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.
After initial recognition, the Company measures all financial liabilities at amortized cost,
except for financial liabilities at fair value through profit or loss which shall be measured at
fair value.
4. 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.
5. Inventories
Inventories are valued at the lower of cost or market value under the gross method. Cost is
determined on a weighted-average basis. The market values of raw materials and supplies
are determined on the basis of replacement cost while the market values of work in process
and finished goods are determined by net realizable value.