Asus 2015 Annual Report Download - page 241

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(2) Basis of preparation
A. Except for the following significant items, these separate financial statements have been
prepared under the historical cost convention:
(A) Financial assets and financial liabilities (including derivative instruments) at fair value
through profit or loss.
(B) Available-for-sale financial assets measured at fair value.
(C) Liabilities on cash-settled share-based payment arrangements measured at fair value.
(D) Defined benefit liabilities recognized based on the net amount of pension fund assets less
present value of defined benefit obligation.
B. The critical accounting estimates and assumptions used in preparation of financial statements
and the critical judgments in applying the Company’s accounting policies are disclosed in Note
5.
(3) Foreign currency translation
Items included in the financial statements are measured using the currency of the primary
economic environment in which the entity operates (the “functional currency”). The separate
financial statements are presented in “New Taiwan Dollars (NTD)”, which is the Company’s
functional and presentation currency.
A. Foreign currency transactions and balances
(A) Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions or valuation where items are remeasured.
Foreign exchange gains and losses resulting from the settlement of such transactions are
recognized in profit or loss in the period in which they arise.
(B) Monetary assets and liabilities denominated in foreign currencies at the period end are
re-translated at the exchange rates prevailing at the end of the financial reporting period.
Exchange differences arising upon re-translation at the end of the financial reporting period
are recognized in profit or loss.
(C) Non-monetary assets and liabilities denominated in foreign currencies at fair value through
profit or loss are re-translated at the exchange rates prevailing at the end of the financial
reporting period. The translation differences are recognized in profit or loss as part of the
fair value gain or loss. Non-monetary assets and liabilities at fair value through other
comprehensive income are re-translated at the exchange rates prevailing at the end of the
financial reporting period. The translation differences are recognized in other
comprehensive income. However, non-monetary assets and liabilities denominated in
foreign currencies that are not measured at fair value are translated using the historical
exchange rates at the dates of the initial transactions.
(D) All other foreign exchange gains and losses based on the nature of those transactions are
presented in the statement of comprehensive income within “other gains (losses)”.