Asus 2015 Annual Report Download - page 185

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forecast transaction occurs or is no longer expected to occur, the cumulative gain or loss
that was reported in other comprehensive income is transferred to profit or loss in the
periods when the hedged forecast cash flow affects profit or loss.
(26) Provisions for liabilities
Provisions are recognized when the Group has a present legal or constructive obligation as a result
of past events, and it is probable that an outflow of economic resources will be required to settle
the obligation and the amount of the obligation can be reliably estimated. Provisions are measured
at the present value of the expenditures expected to be required to settle the obligation at the end
of the financial reporting period, which is discounted using a pre-tax discount rate that reflects the
current market assessments of the time value of money and the risks specific to the obligation.
When discounting is used, the increase in the provision due to passage of time is recognized as
interest expense. Provisions are not recognized for future operating losses.
(27) Employee benefits
A. Short-term employee benefits
Short-term employee benefits are measured at the undiscounted amount of the benefits
expected to be paid in respect of service rendered by employees in a period and should be
recognized as expenses in that period when the employees render service.
B. Pensions
(A) Defined contribution plans
For defined contribution plans, the contributions are recognized as pension expenses
when they are due on an accrual basis. Prepaid contributions are recognized as an asset to
the extent of a cash refund or a reduction in the future payments.
(B) Defined benefit plans
a. The liability recognized in the balance sheets in respect of defined benefit pension
plans is the present value of the defined benefit obligation at the end of the financial
reporting period less the fair value of plan assets. The defined benefit obligation is
calculated annually by independent actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows using interest rates of high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid, and that have terms
to maturity approximating to the terms of the related pension liability; when there is no
deep market in such corporate bonds, the Group uses interest rates of government
bonds (at the end of the financial reporting period) instead.
b. Remeasurement arising on defined benefit plans are recognized in other
comprehensive income in the period in which they arise and are recorded as other
equity.
c. Prior service costs are recognized immediately in profit or loss.