Asus 2014 Annual Report Download - page 238

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M. According to “Regulations Governing the Preparation of Financial Reports by Securities
Issuers”, profit and other comprehensive income in the separate financial statements should
be the same as profit and other comprehensive income attributable to shareholders of the
parent in the consolidated financial statements, and the equity in the separate financial
statements should be the same as the equity attributable to shareholders of the parent in the
consolidated financial statements.
(14) 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 Company 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.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted
if appropriate, at each 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 the buildings are 10~50 years, machinery and equipment are 3 years and miscellaneous
equipment are 1~15 years.
(15) 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.
(16) 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 50 years.
(17) Intangible assets
Computer software is amortised on a straight-line basis over its estimated useful life of 1~5
years.