Asus 2012 Annual Report Download - page 133

129
(B) 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 difference adjustments 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 which are recognized in current profit
or loss, are recognized in a separate component of stockholders’ equity until such
investment is reclassified or disposed of, upon which the cumulative separate component
of stockholders’ equity is transferred to current profit or loss.
(C) Financial assets carried at cost
Equity investments without reliable market prices, including emerging and other unlisted
and non-OTC stocks, are measured at cost. If objective evidence of impairment exists, the
Company recognizes impairment loss, which is not reversed in subsequent periods.
C. Subsequent to initial recognition, the Company measures all financial liabilities at amortized
cost except for financial liabilities at fair value through profit or loss, which are measured at
fair value.
(4) Notes and accounts receivable and other receivables
A. Notes and accounts receivable are claims resulting from the sale of goods or services. Other
receivables are those arising from transactions other than the sale of goods or services.
B. Notes and accounts receivable and other receivables are recognized initially at fair value and
subsequently measured at amortized cost using the effective interest method, less provision for
accumulated impairment. A provision for impairment is established when there is objective
evidence that the receivables are impaired. The amount of the provision is the difference
between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate. When the fair value of the asset subsequently
increases and the increase can be objectively related to an event occurring after the impairment
loss was recognized in profit or loss, the impairment loss shall be reversed to the extent of the
loss previously recognized in profit or loss. Such recovery of impairment loss shall not make
the asset’s carrying amount more than its amortized cost where no accumulated impairment
loss was recognized. Subsequent recoveries of amounts previously written off are recognized
in profit.
(5) Inventories
The costs of inventories consist of those necessary expenditures incurred in bringing each item of
inventory to its usable condition and location. Cost is calculated on a weighted-average basis.
Inventories are valued at the lower of cost or net realizable value. Net realizable value by item is
determined based on the estimated selling price in the ordinary course of business, less estimated
costs to complete and to sell.