Asus 2008 Annual Report Download - page 96

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92
ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
(2) Depreciation is provided on the straight-line basis over the following useful lives:
Categories
Estimated Useful Lives
Buildings and equipment
3
-
50
years
Machinery and equipment
5
-
6
years
Warehousing equipment
8
years
Instrument equipment
3
-
8
years
Transportation equipment
5
years
Office equipment
5
years
Miscellaneous equipment
3
-
15
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.
8. Intangible assets
Intangible assets represent computer softwares which are amortized using the straight-line
method over 3 years.
9. Deferred charges
Deferred charges represent small tools and office decorations, which are amortized using the
straight-line method over 2 to 5 years.
10. Convertible bonds payable
(1) For bonds issued prior to December 31, 2005, the policy consists of the following:
The issuance costs are recorded as deferred charges and amortized from its issued
date to maturity date.
If the redemption price of the bond is lower than the face value of the bond, the
difference shall be amortized as a debit of bonds payable between the issued date and
the last day of redemption period in a reasonable and systematic manner.