Asus 2008 Annual Report Download - page 99

95
ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
The Company adopts the R.O.C. SFAS No. 12 “Accounting for Income Tax Credits”. This
Statement requires all income tax credits resulting from the acquisition of equipment or
technology, research and development, and employee trainings to be recognized in the
current period.
On the date of earnings distribution approved by the shareholders’ meeting, an additional
10% income tax levied on the undistributed earnings shall be recognized immediately.
The R.O.C. government enacted the Alternative Minimum Tax (“AMT”) Act which became
effective on January 1, 2006. The Company has taken into consideration the impact of the
AMT in the determination of its current income tax expense and its future impact when
estimating the realizable value of the deferred tax assets.
14. Revenue and cost
The Company recognizes revenue when the revenue earning process has been significantly
completed, which means the revenue has been realized or readily realizable and earned.
Cost is recognized when the related revenue is accrued; expenses are recognized as current
expenses when incurred in accordance with accrual basis.
15. Asset impairment
The Company assesses indication for impairment for all applicable assets subject to the
R.O.C. SFAS No.35 on the balance sheet date. If impairment indication exists, the
Company then compares the carrying amount with the recoverable amount of the assets or
the cash-generating unit (“CGU”) and writes down the carrying amount to the recoverable
amount where applicable. Recoverable amount is defined as the higher of net fair value and
usable value. In contrast, if there is evidence that the impairment loss may no longer exist
or may have decreased, the Company shall reassess the recoverable amount on the balance
sheet date. When the recoverable amount of the asset increases due to the increase in its
estimated service potential, the Company 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.