Asus 2014 Annual Report Download - page 171

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(8) Available-for-sale financial assets
A. Available-for-sale financial assets are non-derivatives that are either designated in this category
or not classified in any of the other categories.
B. On a regular way purchase or sale basis, available-for-sale financial assets are recognized and
derecognized using trade date accounting.
C. Available-for-sale financial assets are initially recognized at fair value plus transaction costs.
These financial assets are subsequently remeasured and stated at fair value, and any changes in
the fair value of these financial assets are recognized in other comprehensive income.
Investments in equity instruments that do not have a quoted market price in an active market
and whose fair value cannot be reliably measured or derivatives that are linked to and must be
settled by delivery of such unquoted equity instruments are presented in “financial assets
measured at cost”.
(9) Loans and receivables
Trade receivables are loans and receivables originated by the entity. They are created by the entity
by selling goods or providing services to customers in the ordinary course of business. Trade
receivables are initially recognized at fair value and subsequently measured at amortised cost using
the effective interest method, less provision for impairment. Due to the insignificant discount effect
on the non-interest bearing short-term receivables, they are measured at the original invoice
amount.
(10) Impairment of financial assets
A. The Group assesses at the end of the financial reporting period whether there is objective
evidence that a financial asset or a group of financial assets is impaired as a result of one or
more events that occurred after the initial recognition of the asset (a “loss event”) and that
loss event has an impact on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated.
B. The criteria that the Group uses to determine whether there is objective evidence of an
impairment loss is as follows:
(A) Significant financial difficulty of the issuer or debtor;
(B) A breach of contract, such as a default or delinquency in interest or principal payments;
(C) The Group, for economic or legal reasons relating to the borrower’s financial difficulty,
granted the borrower a concession that a lender would not otherwise consider;
(D) It becomes probable that the borrower will enter bankruptcy or other financial
reorganization;
(E) The disappearance of an active market for that financial asset because of financial
difficulties;
(F) Observable data indicating that there is a measurable decrease in the estimated future
cash flows from a group of financial assets since the initial recognition of those assets,
although the decrease cannot yet be identified with the individual financial asset in the