Asus 2009 Annual Report Download - page 157

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ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
B. 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 Group recognizes
impairment loss, which is not reversed in subsequent periods.
C. 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. These assets are then measured at fair
value. The gain or loss arising from 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 are transferred to the current profit or loss.
D. Financial assets held to maturity
Debt securities for which the Company has a positive intention and ability to hold to maturity
are classified as financial assets held to maturity and are carried at amortized cost under the
effective interest method. If objective evidence of impairment exists, the Group recognizes
impairment loss. If, in a subsequent period, the impairment loss decreases and the decrease is
clearly attributable to an event which occurred after the impairment loss was recognized, the
previously recognized impairment loss is reversed to the extent of the decrease. The reversible
amount may not exceed the amortized cost that would have been determined if no impairment
loss had been recognized.
E. Derivative financial assets and liabilities for hedging
The Group recognizes the offsetting effects on profit or loss of changes in the fair values of the
hedging instrument and the hedged item when hedging relationships meet the criteria for hedge
accounting which is accounted for as follows:
(a) Fair value hedge: Changes in the fair value of a hedging instrument designated as a fair
value hedge are recognized in current profit or loss. The hedged item also is stated at fair
value in respect of the risk being hedged, with any gain or loss being recognized in current
profit or loss.