Asus 2014 Annual Report Download - page 176

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(20) Borrowings
A. Borrowings are recognized initially at fair value, net of transaction costs incurred.
Borrowings are subsequently stated at amortised cost, any difference between the proceeds
net of transaction costs, and the redemption value is recognized in profit or loss over the
period of the borrowings using the effective interest method.
B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan
to the extent that it is probable that some or all of the facility will be drawn down. In this case,
the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is
probable that some or all of the facility will be drawn down, the fee is capitalized as a
pre-payment for liquidity services and amortised over the period of the facility to which it
relates.
(21) Notes and trade payables
Notes and trade payables are obligations to pay for goods or services that have been acquired in
the ordinary course of business from suppliers. They are recognized initially at fair value and
subsequently measured at amortised cost using the effective interest method. Due to the
insignificant discount effect on the non-interest bearing short-term payables, they are measured at
the original invoice amount.
(22) Financial liabilities at fair value through profit or loss
A. Financial liabilities at fair value through profit or loss are financial liabilities held for trading
or financial liabilities designated as at fair value through profit or loss on initial recognition.
Financial liabilities are classified in this category of held for trading if acquired principally
for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial
liabilities held for trading unless they are designated as hedges. Financial liabilities that meet
one of the following criteria are designated as at fair value through profit or loss on initial
recognition:
(A) Hybrid (combined) contracts; or
(B) They eliminate or significantly reduce a measurement or recognition inconsistency; or
(C) They are managed and their performance is evaluated on a fair value basis, in accordance
with a documented risk management policy.
B. Financial liabilities at fair value through profit or loss are initially recognized at fair value.
Related transaction costs are expensed in profit or loss. These financial liabilities are
subsequently remeasured and stated at fair value, and any changes in the fair value of these
financial liabilities are recognized in profit or loss.
(23) Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability specified in the
contract is discharged, cancelled or expires.
(24) Offsetting financial assets and financial liabilities
Financial assets and liabilities are offset and reported in the net amount in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to
settle on a net basis or realize the asset and settle the liability simultaneously.