Asus 2015 Annual Report Download - page 168

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(1) Compliance statement
These consolidated financial statements of the Group have been prepared in accordance with the
“Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International
Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC
Interpretations as endorsed by the FSC (“IFRSs”) .
(2) Basis of preparation
A. Except for the following significant items, these consolidated financial statements have been
prepared under the historical cost convention:
(A) Financial assets and financial liabilities (including derivative instruments) at fair value
through profit or loss.
(B) Available-for-sale financial assets measured at fair value.
(C) Liabilities on cash-settled share-based payment arrangements measured at fair value.
(D) Defined benefit liabilities recognized based on the net amount of pension fund assets less
present value of defined benefit obligation.
B. The critical accounting estimates and assumptions used in preparation of financial statements
and the critical judgements in applying the Group’s accounting policies are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements
(A) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries
are all entities (including structured entities) controlled by the Group. The Group controls an
entity when the Group is exposed, or has rights, to variable returns from its involvement
with the entity and has the ability to affect those returns through its power over the entity.
Consolidation of subsidiaries begins from the date the Group obtains control of the
subsidiaries and ceases when the Group loses control of the subsidiaries.
(B) Inter-company transactions, balances and unrealized gains or losses on transactions between
companies within the Group are eliminated. Accounting policies of subsidiaries have been
adjusted where necessary to ensure consistency with the policies adopted by the Group.
(C) Profit or loss and each component of other comprehensive income are attributed to the
owners of the parent and to the non-controlling interests. Total comprehensive income is
attributed to the owners of the parent and to the non-controlling interests even if this results
in the non-controlling interests having a deficit balance.
(D) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent
losing control of the subsidiary (transactions with non-controlling interests) are accounted
for as equity transactions, i.e. transactions with owners in their capacity as owners. Any
difference between the amount by which the non-controlling interests are adjusted and the
fair value of the consideration paid or received is recognized directly in equity.