Asus 2014 Annual Report Download - page 175

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D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted
if appropriate, at the end of the financial reporting period. If expectations for the assets’
residual values and useful lives differ from previous estimates or the patterns of consumption
of the assets’ future economic benefits embodied in the assets have changed significantly, any
change is accounted for as a change in estimate under IAS 8, “Accounting Policies, Changes
in Accounting Estimates and Errors”, from the date of the change. The estimated useful lives
of buildings are 5~60 years, machinery and equipment are 1~10 years and miscellaneous
equipment are 1~15 years.
(16) Leased assets/ leases (lessee)
An operating lease is a lease that the lessor assumes substantially all the risks and rewards
incidental to ownership of the leased asset. Payments made under an operating lease (net of any
incentives received from the lessor) are recognized in profit or loss on a straight-line basis over
the lease term.
(17) Investment property
An investment property is stated initially at its cost and measured subsequently using the cost
model. Except for land, investment property is depreciated on a straight-line basis over its
estimated useful life of 2~50 years.
(18) Intangible assets
A. Goodwill arises in a business combination accounted for by applying the acquisition method.
B. Other intangible assets, mainly trademark and computer software, are amortised on a
straight-line basis over their estimated useful lives of 1~10 years.
(19) Impairment of non-financial assets
A. The Group assesses at the end of the financial reporting period the recoverable amounts of
those assets where there is an indication that they are impaired. An impairment loss is
recognized for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or
value in use. Except for goodwill, when the circumstances or reasons for recognizing
impairment loss for an asset in prior years no longer exist or decrease, the impairment loss
shall be reversed to the extent of the loss previously recognized in profit or loss. However, the
reversal should not exceed the carrying amount, net of depreciation or amortisation had the
impairment not been recognized.
B. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and
intangible assets that have not yet been available for use shall be evaluated periodically. An
impairment loss is recognized for the amount by which the asset’s carrying amount exceeds
its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss
shall not be reversed in the following years.