Asus 2014 Annual Report Download - page 174

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D. Unrealized gains on transactions between the Group and its associates are eliminated to the
extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless
the transaction provides evidence of an impairment of the asset transferred. Accounting
policies of associates have been adjusted where necessary to ensure consistency with the
policies adopted by the Group.
E. In the case that an associate issues new shares and the Group does not subscribe or acquire
new shares proportionately, which results in a change in the Group’s ownership percentage of
the associate but maintains significant influence on the associate, then “capital surplus” and
“investments accounted for under equity method” shall be adjusted for the increase or
decrease of its share of equity interest. If the above condition causes a decrease in the Group’s
ownership percentage of the associate, in addition to the above adjustment, the amounts
previously recognized in other comprehensive income in relation to the associate are
reclassified to profit or loss proportionately on the same basis as would be required if the
relevant assets or liabilities were disposed of.
F. Upon loss of significant influence over an associate, the Group remeasures any investment
retained in the former associate at its fair value. Any difference between fair value and
carrying amount is recognized in profit or loss.
G. When the Group disposes its investment in an associate and loses significant influence over
this associate, the amounts previously recognized in other comprehensive income and as
capital surplus in relation to the associate, are reclassified to profit or loss, on the same basis
as would be required if the relevant assets or liabilities were disposed of. If it still retains
significant influence over this associate, then the amounts previously recognized in other
comprehensive income and as capital surplus in relation to the associate are reclassified to
profit or loss proportionately.
(15) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during
the construction period are capitalised.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured reliably. The carrying amount
of the replaced part is derecognized. All other repairs and maintenance are charged to profit
or loss during the financial period in which they are incurred.
C. Except for land which is not depreciated, other property, plant and equipment apply cost
model and are depreciated using the straight-line method to allocate their cost over their
estimated useful lives. If each component of property, plant and equipment is significant, it
should be depreciated separately.