Asus 2010 Annual Report Download - page 97

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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.
D. 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.
(2) Classification of current and non-current assets and liabilities
A. 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.
B. 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;
(D) Liabilities for which the repayment date cannot be extended unconditionally to more
than twelve months after the balance sheet date.
(3) Financial instruments
A. In accordance with R.O.C. SFAS No. 34, “Financial Instruments: Recognition and
Measurement” and the “Regulations 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 liabilities at cost.
B. The Company accounts for purchases and sales of financial assets on the trade date, or the
date when the Company 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