Asus 2012 Annual Report Download - page 178

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F. Nature and extent of the restrictions on fund remittance from subsidiaries to the parent
company: None.
G. Contents of subsidiaries’ securities issued by the parent company: None.
H. Information on convertible bonds and common stock issued by subsidiaries: The subsidiaries
did not issue convertible bonds and new common stock having significant influence on
stockholders’ equity of the parent company.
(2) Foreign currency transactions and translation of financial statements in foreign currencies
A. Transactions involving non-derivative financial instruments denominated in foreign currencies
are recorded in functional currencies at the rates of exchange in effect when the transactions
occurred. Translation gain or loss arising from the settlement of assets and liabilities
denominated in foreign currencies are included in profit or loss in the year of actual settlement.
B. 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 gain
and loss included in the statement of income.
C. 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 gain or loss 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 gain or loss 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. Assets and liabilities of foreign subsidiaries are translated into New Taiwan dollars using the
exchange rates at the balance sheet date. Equity accounts are translated at historical rates
except for beginning retained earnings, which are carried forward from prior year’s balance.
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.
E. 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 gain or loss from long-term investments is recognized as cumulative
translation adjustment in stockholders’ equity.
(3) 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;