Asus 2014 Annual Report Download - page 263

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risk arises from future commercial transactions, recognized assets and liabilities and net
investments in foreign operations.
b. Management has set up a policy to require the organization to manage the foreign
exchange risk against the functional currency. To manage its foreign exchange risk
arising from future commercial transactions and recognized assets and liabilities, the
Company uses forward exchange contracts to hedge. Foreign exchange risk arises when
future commercial transactions or recognized assets or liabilities are denominated in a
currency that is not the entity’s functional currency.
c. The Company has certain investments in foreign operations, whose net assets are
exposed to foreign currency translation risk.
d. The Company’s businesses involve some non-functional currency operations (the
Company’s functional currency: NTD). The information on assets and liabilities
denominated in foreign currencies whose values would be materially affected by the
exchange rate fluctuations is as follows:
Extent
of
variation
Effect on
profit
or loss
Effect on other
comprehensive
income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 2,806,819,386$ 31.650 88,835,834$ 1% 888,358$ -$
Non-monetary items
USD:NTD 1,481,944,459 31.650 46,903,542 1% 469,035 -
Financial liabilities
Monetary items
USD:NTD 2,924,734,735 31.650 92,567,854 1% 925,679 -
2014/12/31
Foreign
currency
amount
(In dollars)
Exchang
e rate
Book value
(NTD)
Sensitivity Analysis
Extent
of
variation
Effect on
profit
or loss
Effect on other
comprehensive
income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 2,265,329,364$ 29.805 67,518,142$ 1% 675,181$ -$
Non-monetary items
USD:NTD 1,222,496,369 29.805 36,436,504 1% 364,365 -
Financial liabilities
Monetary items
USD:NTD 2,256,901,917 29.805 67,266,962 1% 672,670 -
2013/12/31
Foreign
currency
amount
(In dollars)
Exchang
e rate
Book value
(NTD)
Sensitivity Analysis