Asus 2014 Annual Report Download - page 181

177
B. The Group offers customers volume discounts and right of return for defective products. The
Group estimates such discounts and returns based on historical experience. Provisions for
such liabilities are recorded when the sales are recognized. The volume discounts are
estimated based on the anticipated annual sales quantities.
(31) Business combinations
A. The Group uses the acquisition method to account for business combinations. The
consideration transferred for an acquisition is measured as the fair value of the assets
transferred, liabilities incurred or assumed and equity instruments issued at the acquisition
date, plus the fair value of any assets and liabilities resulting from a contingent consideration
arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. There is a choice on an
acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either
at fair value or at the non-controlling interest’s proportionate share of the acquiree’s
identifiable net assets.
B. If the total of the fair values of the consideration of acquisition and any non-controlling
interest in the acquiree as well as the acquisition-date fair value of any previous equity
interest in the acquiree is higher than the fair value of the Group’s share of the identifiable net
assets acquired and liabilities assumed, the difference is recorded as goodwill, if the total of
the fair values of the consideration of acquisition and any non-controlling interest in the
acquiree as well as the acquisition-date fair value of any previous equity interest in the
acquiree is higher than the fair value of the Group’s share of the identifiable net assets
acquired and liabilities assumed, the difference is recorded as profit.
(32) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision-maker. The chief operating decision-maker is responsible for
allocating resources and assessing performance of the operating segments.
5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF
ASSUMPTION UNCERTAINTY
The preparation of these consolidated financial statements requires management to make critical
judgements in applying the Group’s accounting policies and make critical assumptions at the end of
the financial reporting period and estimates concerning future events. The resulting accounting
estimates and assumptions might be different from the actual results, and will be continually evaluated
and adjusted based on historical experience and other factors; and the related information is addressed
below: