Asus 2015 Annual Report Download - page 243

239
(5) Cash equivalents
Cash equivalents refer to short-term highly liquid investments that are readily convertible to known
amount of cash and subject to an insignificant risk of changes in value. Time deposits can be
classified as cash equivalents if they meet the criteria mentioned above and are held for short-term
cash commitments in operational purpose.
(6) Financial assets at fair value through profit or loss
A. Financial assets at fair value through profit or loss are financial assets held for trading or
financial assets designated as at fair value through profit or loss on initial recognition.
Financial assets are classified in this category of held for trading if held principally for the
purpose of selling in the short-term. Derivatives are also categorized as financial assets held for
trading unless they are designated as hedges. Financial assets that meet one of the following
criteria are designated as at fair value through profit or loss on initial recognition:
(A) Hybrid (combined) contracts; or
(B) They eliminate or significantly reduce a measurement or recognition inconsistency; or
(C) They are managed and their performance is evaluated on a fair value basis, in accordance
with a documented risk management or investment strategy.
B. On a regular way purchase or sale basis, financial assets designated as at fair value through
profit or loss are recognized and derecognized using trade date accounting.
C. Financial assets at fair value through profit or loss are initially recognized at fair value.
Related transaction costs are expensed in profit or loss. These financial assets are subsequently
remeasured and stated at fair value, and any changes in the fair value of these financial assets
are recognized in profit or loss.
(7) Available-for-sale financial assets
A. Available-for-sale financial assets are non-derivatives that are either designated in this category
or not classified in any of the other categories.
B. On a regular way purchase or sale basis, available-for-sale financial assets are recognized and
derecognized using trade date accounting.
C. Available-for-sale financial assets are initially recognized at fair value plus transaction costs.
These financial assets are subsequently remeasured and stated at fair value, and any changes in
the fair value of these financial assets are recognized in other comprehensive income.
Investments in equity instruments that do not have a quoted market price in an active market
and whose fair value cannot be reliably measured or derivatives that are linked to and must be
settled by delivery of such unquoted equity instruments are presented in “financial assets
measured at cost”.
(8) Loans and receivables
Loans and receivables are created originally by the entity by selling goods or providing services to
customers in the ordinary course of business. They are initially recognized at fair value and
subsequently measured at amortised cost using the effective interest method, less provision for
impairment. Due to the insignificant discount effect on the non-interesting-bearing short-term
receivables, they are measured at the original invoice amount.