Asus 2010 Annual Report Download - page 147

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(2) Monetary assets and liabilities denominated in foreign currencies are remeasured at the
balance sheet date using the exchange rates in effect on that date, with related exchange
gains and losses included in the statement of income.
(3) 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
at 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 at the balance sheet date, with related
exchange gains or losses recorded in the statement of income. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at cost are remeasured at
the historical exchange rate.
(4) Assets and liabilities and equity accounts of foreign subsidiaries are translated into New
Taiwan dollars using the exchange rates at the balance sheet date except for profit and
loss accounts, which are translated at weighted-average rates of the year. Dividends are
translated at the rates prevailing at the date of declaration. Profit and loss accounts are
translated at weighted-average rates of the year. The resulting translation differences are
included in “cumulative translation adjustments” under stockholders’ equity.
(5) 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. Translation gains or losses from long-term investments are
recognized as cumulative translation adjustment in stockholders’ equity.
3) Classification of current and non-current assets and liabilities
(1) Assets that meet one of the following criteria are classified as current assets; otherwise
they are classified as non-current assets:
A. Assets arising from operating activities that are expected to be realized or consumed,
or are intended to be sold within the normal operating cycle;
B. Assets held mainly for trading purposes;
C. Assets that are expected to be realized within twelve months from the balance sheet
date;
D. Cash and cash equivalents, excluding restricted cash and cash equivalents and those
that are to be exchanged or used to pay off liabilities more than twelve months after
the balance sheet date.
(2) Liabilities that meet one of the following criteria are classified as current liabilities;
otherwise they are classified as non-current liabilities:
A. Liabilities arising from operating activities that are expected to be paid off within the
normal operating cycle;
B. Liabilities arising mainly from trading activities;
C. Liabilities that are to be paid off within twelve months from the balance sheet date;