Asus 2015 Annual Report Download - page 181

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B. The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit or
loss, and its share of post-acquisition movements in other comprehensive income is recognized
in other comprehensive income. When the Group’s share of losses in an associate equals or
exceeds its interest in the associate, including any other unsecured receivables, the Group does
not recognize further losses, unless it has incurred legal or constructive obligations or made
payments on behalf of the associate.
C. When changes in an associate’s equity are not recognized in profit or loss or other
comprehensive income of the associate and such changes do not affect the Group’s ownership
percentage of the associate, the Group recognizes change in ownership interests in the
associate in “capital surplus” in proportion to its ownership.
D. Unrealized gains on transactions between the Group and its associates are eliminated to the
extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the
transaction provides evidence of an impairment of the asset transferred. Accounting policies of
associates have been adjusted where necessary to ensure consistency with the policies adopted
by the Group.
E. In the case that an associate issues new shares or buys treasury stocks (including the Group
does not acquire or dispose shares proportionately), which results in a change in the Group’s
ownership percentage of the associate but maintains significant influence on the associate,
then “capital surplus” and “investments accounted for under equity method” shall be adjusted
for the increase or decrease of its share of equity interest. If the above condition causes a
decrease in the Group’s ownership percentage of the associate, in addition to the above
adjustment, the amounts previously recognized in other comprehensive income in relation to
the associate are reclassified to profit or loss proportionately on the same basis as would be
required if the relevant assets or liabilities were disposed of.
F. Upon loss of significant influence over an associate, the Group remeasures any investment
retained in the former associate at its fair value. Any difference between fair value and
carrying amount is recognized in profit or loss.
G. Upon loss of significant influence over an associate, the amounts previously recognized in
other comprehensive income and as capital surplus in relation to the associate, are reclassified
to profit or loss, on the same basis as would be required if the relevant assets or liabilities were
disposed of. If it still retains significant influence over this associate, then the amounts
previously recognized in other comprehensive income and as capital surplus in relation to the
associate are reclassified to profit or loss proportionately.
(15) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during
the construction period are capitalized.