Asus 2014 Annual Report Download - page 172

168
group, including adverse changes in the payment status of borrowers in the group or
national or local unfavorable economic conditions that correlate with defaults on the
assets in the group;
(G) Information about significant changes with an adverse effect that have taken place in the
technology, market, economic or legal environment in which the issuer operates, and
indicates that the cost of the investment in the equity instrument may not be recovered; or
(H) A significant or prolonged decline in the fair value of an investment in an equity
instrument below its cost.
C. When the Group assesses that there has been objective evidence of impairment and an
impairment loss has occurred, accounting for impairment is made as follows according to the
category of financial assets:
(A) Financial assets measured at amortised cost
The amount of the impairment loss is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flows discounted at the
financial asset’s original effective interest rate, and is recognized in profit or loss. If, in a
subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment loss was recognized, the
previously recognized impairment loss is reversed through profit or loss to the extent that
the carrying amount of the asset does not exceed its amortised cost that would have been
at the date of reversal had the impairment loss not been recognized previously.
Impairment loss is recognized and reversed by adjusting the carrying amount of the asset
through the use of an impairment allowance account.
(B) Financial assets measured at cost
The amount of the impairment loss is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flows discounted at
current market return rate of similar financial asset, and is recognized in profit or loss.
Impairment loss recognized for this category shall not be reversed subsequently.
Impairment loss is recognized by adjusting the carrying amount of the asset through the
use of an impairment allowance account.
(C) Available-for-sale financial assets
The amount of the impairment loss is measured as the difference between the asset’s
acquisition cost (less any principal repayment and amortisation) and current fair value,
less any impairment loss on that financial asset previously recognized in profit or loss,
and is reclassified from “other comprehensive income” to “profit or loss”. If, in a
subsequent period, the fair value of an investment in a debt instrument increases, and the
increase can be related objectively to an event occurring after the impairment loss was
recognized, then such impairment loss can be reversed through profit or loss. Impairment
loss of an investment in an equity instrument recognized in profit or loss shall not be