Asus 2009 Annual Report Download - page 189

185
ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
C. The fair value of financial assets and financial liabilities evaluated by the Group using public
quotes or an assessment method was as follows:
2009/12/31 2008/12/31
Public
quote value
Assessment
value
Public
quote value
Assessment
value
Financial assets:
Financial assets measured at
fair value through profit or
loss – current $ 21,352,667 304,528 13,280,321 15,158
Available-for-sale financial
assets－current 1,848,464 - 516,306 -
Derivative financial assets for
hedging－current - 306,361 - -
Available-for-sale financial
assets－non-current 7,805,382 - 4,556,392 -
Financial liabilities:
Financial liabilities measured
at fair value through profit
or loss – current
- 283,596 - 1,721,005
Bonds payable – current - 3,621,586 - 12,051,082
Long-term loans (including
current portion) - 10,324,144 - 11,969,627
The gains (loss) resulting from the valuation of financial instruments using a valuation
technique amounted to $(231,967) and $(56,610) for the years ended December 31, 2009 and
2008, respectively.
D. Information about financial risk
(a) Market risk
(i) The Group is exposed to foreign currency risks arising from purchases or sales
denominated in foreign currencies. The Group uses the principle of natural hedge to
mitigate the risk and utilize spot or forward contracts to hedge foreign currency risk.
The notional amounts of the foreign currency contracts are the same as the amounts of
the hedged items. In principle, the Group does not enter into any forward contracts for
commitments of uncertain nature. The Group enters into forward currency contracts
to hedge the exchange rate risk of assets, liabilities and commitments denominated in
foreign currencies. The Group’ hedging strategy is to avoid most market price risks.
The Group uses the derivatives that have highest negative correlation with the hedged
items as hedging instruments and evaluates the hedge effectiveness periodically.