Asus 2014 Annual Report Download - page 242

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it arises from initial recognition of goodwill or of an asset or liability in a transaction other
than a business combination that at the time of the transaction affects neither accounting nor
taxable profit or loss. Deferred income tax is provided on temporary differences arising on
investments in subsidiaries and associates, except where the timing of the reversal of the
temporary difference is controlled by the Company 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
each 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.
(27) 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.
(28) Revenue recognition
Sales of goods
The Company 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 customers in the ordinary course of the Company’s
activities. Revenue arising from the sales of goods should be recognized when the Company 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 Company retains neither continuing managerial
involvement to the degree usually associated with ownership nor effective control over the goods