Asus 2014 Annual Report Download - page 180

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temporary difference is controlled by the Group and it is probable that the temporary
difference will not reverse in the foreseeable future. Deferred income tax is determined using
tax rates (and laws) that have been enacted or substantially enacted by the end of the financial
reporting period and are expected to apply when the related deferred income tax asset is
realized or the deferred income tax liability is settled.
D. Deferred income tax assets are recognized only to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be utilized. At the
end of the financial reporting period, unrecognized and recognized deferred income tax assets
are reassessed.
E. Current income tax assets and liabilities are offset and the net amount is reported 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. Deferred income tax assets and liabilities are offset on the balance sheet
when the entity has the legally enforceable right to offset current tax assets against current tax
liabilities and they are levied by the same taxation authority on either the same entity or
different entities that intend to settle on a net basis or realize the asset and settle the liability
simultaneously.
F. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting
from research and development expenditures to the extent that it is possible that future
taxable profit will be available against which the unused tax credits can be utilized.
(29) Dividends
Dividends are recorded in the Company’s financial statements in the period in which they are
approved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock
dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares
on the effective date of new shares issuance.
(30) Revenue recognition
Sales of goods
A. The Group is primarily engaged in the selling of 3C products. Revenue is measured at the fair
value of the consideration received or receivable taking into account value-added tax, returns,
rebates and discounts for the sale of goods to external customers in the ordinary course of the
Group’s activities. Revenue arising from the sales of goods should be recognized when the
Group has delivered the goods to the customer, the amount of sales revenue can be measured
reliably and it is probable that the future economic benefits associated with the transaction
will flow to the entity. The delivery of goods is completed when the significant risks and
rewards of ownership have been transferred to the customer, the Group retains neither
continuing managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold, and the customer has accepted the goods based on the
sales contract or there is objective evidence showing that all acceptance provisions have been
satisfied.