Asus 2015 Annual Report Download - page 244

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(9) Impairment of financial assets
A. The Company assesses at end of each financial reporting period whether there is objective
evidence that a financial asset or a group of financial assets is impaired as a result of one or
more events that occurred after the initial recognition of the asset (a “loss event”) and that loss
event has an impact on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated.
B. The criteria that the Company uses to determine whether there is objective evidence of an
impairment loss is as follows:
(A) Significant financial difficulty of the issuer or debtor;
(B) A breach of contract, such as a default or delinquency in interest or principal payments;
(C) The Company granted the borrower a concession that a lender would not otherwise
consider for economic or legal reasons relating to the borrower’s financial difficulty;
(D) It becomes probable that the borrower will enter bankruptcy or other financial
reorganization;
(E) The disappearance of an active market for that financial asset because of financial
difficulties;
(F) Observable data indicating that there is a measurable decrease in the estimated future cash
flows from a group of financial assets since the initial recognition of those assets, although
the decrease cannot yet be identified with the individual financial asset in the group,
including adverse changes in the payment status of borrowers in the group or national or
local unfavorable economic conditions that correlate with defaults on the assets in the
group;
(G) Information about significant changes with an adverse effect that have taken place in the
technology, market, economic or legal environment in which the issuer operates, and
indicates that the cost of the investment in the equity instrument may not be recovered; or
(H) A significant or prolonged decline in the fair value of an investment in an equity instrument
below its cost.
C. When the Company assesses that there has been objective evidence of impairment and an
impairment loss has occurred, accounting for impairment is made as follows according to the
category of financial assets:
(A) Financial assets measured at amortised cost
The amount of the impairment loss is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flows discounted at the
financial asset’s original effective interest rate, and is recognized in profit or loss. If, in a
subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment loss was recognized, the
previously recognized impairment loss is reversed through profit or loss to the extent that
the carrying amount of the asset does not exceed its amortised cost that would have been at
the date of reversal had the impairment loss not been recognized previously. Impairment
loss is recognized and reversed by adjusting the carrying amount of the asset through the
use of an impairment allowance account.