Asus 2014 Annual Report Download - page 239

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(18) Impairment of non-financial assets
A. The Company assesses at each 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 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.
(19) 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-interesting bearing short-term payables, they are
measured at the original invoice amount.
(20) 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.
(21) Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability specified in the
contract is discharged, cancelled or expires.