Asus 2009 Annual Report Download - page 155

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ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
(2) Use of estimates
The preparation of the accompanying consolidated financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the reporting periods. Actual results could differ from
these estimates.
(3) Classification of current and non-current assets and liabilities
Cash or cash equivalents, and assets that are held primarily for the purpose of being traded or are
expected to be realized within 12 months after the balance sheet date are classified as current assets;
all other assets are classified as non-current.
Liabilities that are held primarily for the purpose of being traded or are expected to be settled
within 12 months after the balance sheet date are classified as current liabilities; all other liabilities
are classified as non-current.
(4) Foreign currency transactions and translation of financial statements in foreign currencies
Transactions involving non-derivative financial instruments denominated in foreign currencies are
recorded in New Taiwan dollars at the rates of exchange in effect when the transactions occurred.
Translation gains or losses arising from the settlement of assets and liabilities denominated in
foreign currencies are included in profit or loss in the year of actual settlement.
Monetary assets and liabilities denominated in foreign currencies are remeasured on the balance
sheet date using the exchange rates in effect as of that date, with related exchange gains and losses
included in the statements of income.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair
value through 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 through 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 the 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 foreign-currency financial statements of investees.
Translating gains or losses from long-term investments are recognized as cumulative translation
adjustment in stockholders’ equity.