Asus 2015 Annual Report Download - page 180

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(C) Available-for-sale financial assets
The amount of the impairment loss is measured as the difference between the asset’s
acquisition cost (less any principal repayment and amortisation) and current fair value, less
any impairment loss on that financial asset previously recognized in profit or loss, and is
reclassified from “other comprehensive income” to “profit or loss”. If, in a subsequent
period, the fair value of an investment in a debt instrument increases, and the increase can
be related objectively to an event occurring after the impairment loss was recognized, then
such impairment loss can be reversed through profit or loss. Impairment loss of an
investment in an equity instrument recognized in profit or loss shall not be reversed in profit
or loss. Impairment loss is recognized and reversed by adjusting the carrying amount of the
asset through the use of an impairment allowance account.
(11) Derecognition of financial assets
The Group derecognizes a financial asset when one of the following conditions is met:
A. The contractual rights to receive cash flows from the financial asset expire.
B. The contractual rights to receive cash flows from the financial asset have been transferred and
the Group has transferred substantially almost all risks and rewards of ownership of the
financial asset.
C. To transfer the contractual rights to receive cash flows of ownership of the financial asset but
the Group has not retained the control of financial asset.
(12) Lease receivables (lessor)
An operating lease is a lease that all the risks and rewards incidental to ownership of the leased
assets are not transferred to the lessees. Lease income from an operating lease (net of any
incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease
term.
(13) Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the
weighted-average method. The cost of finished goods and work in process comprises raw
materials and other direct/indirect costs. It excludes borrowing costs. The item by item approach is
used in applying the lower of cost and net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business, less the estimated cost of completion and
applicable variable selling expenses.
(14) Investments accounted for under equity method
A. Associates are all entities over which the Group has significant influence but not control. In
general, it is presumed that the investor has significant influence, if an investor holds, directly
or indirectly 20% or more of the voting power of the investee. Investments in associates are
accounted for using the equity method and are initially recognized at cost.