Asus 2015 Annual Report Download - page 196

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(7) Transfer of financial assets
Transferred financial assets that are derecognised in their entirety
On September 11, 2014, the Group entered into a factoring agreement with a financial institution to
sell its accounts receivable. Under the agreement, the Group is not obligated to bear the
uncollectible risk of the transferred accounts receivable, but is liable for the losses incurred on any
business dispute. The Group does not have any continuing involvement in the transferred accounts
receivable. Thus, the Group derecognised the transferred accounts receivable, and the related
information is as follows.
(8) Offsetting financial assets and financial liabilities
A. The Group has assets (fair value of $41,238,748 and $44,167,318 on December 31, 2015 and
2014, respectively) and liabilities (fair value of $47,089,749 and $55,564,503 on December 31,
2015 and 2014, respectively) with certain companies that meet the offsetting criteria in
paragraph 42 of IAS 32, resulting in the presentation of a net amount for trade receivables, notes
payables, trade payables and other payables – accrued expenses. For certain transactions, the
Group has received cash or financial assets from those companies as collateral, and accordingly,
it does not meet the offsetting criteria in paragraph 42 of IAS 32. However, under the associated
collateral agreement, the collateral can be set off against the net amount of the assets and
liabilities in the case of default and insolvency or bankruptcy.
B. Financial assets and financial liabilities subject to master netting arrangements are as follows:
Purchaser of
accounts
receivable
Accounts
receivable
transferred
Amount
derecognised
Facilities
Amount
advanced
Interest rate of
amount
advanced
Ta Chong Bank 8,326$ 7,493$ 94,950$ -$ -
2014/12/31
Amounts of Amounts of
financial financial Not set off
Gross Gross Gross assets liabilities in the
amounts of amounts of amounts of presented in presented in
balance sheet：
financial financial financial the balance the balance collateral
assets liabilities liabilities set sheet sheet (received)
(before offset)
(before offset)
off (after offset) (after offset) /provided
2015/12/31 41,238,748$ 47,089,749)($ 39,271,171)($ 1,967,577$ 7,818,578)($ 30,000)($
2014/12/31 44,167,318 55,564,503)( 44,102,900)( 64,418 11,461,603)( 20,000)(
Offsetting trade receivables, notes payable, trade payables and other payables - accrued expenses