Asus 2009 Annual Report Download - page 156

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ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
(5) Impairment of assets
The Group assesses all applicable assets subject to R.O.C. Statement of Financial Accounting
Standards (‘SFAS’ ) No. 35 for indication of impairment on the balance sheet date. If any
indication of impairment exists, the Group 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. If the recoverable amount of an asset other than
goodwill has increased as a result of the increase in its estimated service potential, the Group
reverses 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 periods.
The Group assesses the goodwill and intangible assets that have indefinite lives or that are not yet
available for use periodically and on an annual basis and recognizes an impairment loss on the
carrying value in excess of the recoverable amount. The loss is first recorded against the
goodwill allocated to the CGU, with any remaining loss allocated to other assets on a pro rata
basis proportionate to their carrying amounts. The write-down of goodwill is not reversed in
subsequent periods under any circumstances.
(6) Financial instruments
In accordance with R.O.C. SFAS No. 34 “Financial Instruments: Recognition and Measurement”
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 as financial assets carried at cost.
The Group accounts for purchases and sales of financial assets on the trade date, or the date on
which the Group commits to purchase or sell the asset. At initial recognition, financial assets are
recognized at fair value plus, in the case of investments that are not reported at fair value through
profit or loss, directly attributable transaction costs.
A. Financial assets measured at fair value through profit or loss
These financial assets and liabilities are subsequently measured at fair value with changes in
fair value recognized in profit and loss. Stocks of listed companies, convertible bonds and
closed-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.