Asus 2015 Annual Report Download - page 182

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B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured reliably. The carrying amount
of the replaced part is derecognized. All other repairs and maintenance are charged to profit or
loss during the financial period in which they are incurred.
C. Except for land which is not depreciated, other property, plant and equipment apply cost model
and are depreciated using the straight-line method to allocate their cost over their estimated
useful lives. If each component of property, plant and equipment is significant, it should be
depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at the end of the financial reporting period. If expectations for the assets’ residual
values and useful lives differ from previous estimates or the patterns of consumption of the
assets’ future economic benefits embodied in the assets have changed significantly, any change
is accounted for as a change in estimate under IAS 8, “Accounting Policies, Changes in
Accounting Estimates and Errors”, from the date of the change. The estimated useful lives of
buildings are 5~60 years, machinery and equipment are 1~10 years and miscellaneous
equipment are 1~15 years.
(16) Leased assets (lessee)
An operating lease is a lease that the lessor assumes substantially all the risks and rewards
incidental to ownership of the leased asset. Payments made under an operating lease (net of any
incentives received from the lessor) are recognized in profit or loss on a straight-line basis over the
lease term.
(17) Investment property
An investment property is stated initially at its cost and measured subsequently using the cost
model. Except for land, investment property is depreciated on a straight-line basis over its
estimated useful life of 5~50 years.
(18) Intangible assets
A. Goodwill arises in a business combination accounted for by applying the acquisition method.
B. Other intangible assets, mainly trademark and computer software, are amortised on a
straight-line basis over their estimated useful lives of 1~10 years.
(19) Impairment of non-financial assets
A. The Group assesses at the end of the financial reporting period the recoverable amounts of
those assets where there is an indication that they are impaired. An impairment loss is
recognized for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value
in use. Except for goodwill, when the circumstances or reasons for recognizing impairment
loss for an asset in prior years no longer exist or decrease, the impairment loss shall be