Asus 2015 Annual Report Download - page 245

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(B) Financial assets measured at 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 current
market return rate of similar financial asset, and is recognized in profit or loss. Impairment
loss recognized for this category shall not be reversed subsequently. Impairment loss is
recognized by adjusting the carrying amount of the asset through the use of an impairment
allowance account.
(C) Available-for-sale financial assets
The amount of the impairment loss is measured as the difference between the asset’s
acquisition cost (less any principal repayment and amortisation) and current fair value, less
any impairment loss on that financial asset previously recognized in profit or loss, and is
reclassified from “other comprehensive income” to “profit or loss”. If, in a subsequent
period, the fair value of an investment in a debt instrument increases, and the increase can
be related objectively to an event occurring after the impairment loss was recognized, then
such impairment loss can be reversed through profit or loss. Impairment loss of an
investment in an equity instrument recognized in profit or loss shall not be reversed through
profit or loss. Impairment loss is recognized and reversed by adjusting the carrying amount
of the asset through the use of an impairment allowance account.
(10) Derecognition of financial assets
The Company derecognizes a financial asset when one of the following conditions is met:
A. The contractual rights to receive cash flows from the financial asset expire.
B. The contractual rights to receive cash flows from the financial asset have been transferred and
the Company has transferred substantially all risks and rewards of ownership of the financial
asset.
C. To transfer the contractual rights to receive cash flows of ownership of the financial asset but
the Company has not retained the control of financial asset.
(11) Lease receivables (lessor)
An operating lease is a lease that all the risks and rewards incidental to ownership of the leased
assets are not transferred to the lessees. Lease income from an operating lease (net of any
incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease
term.
(12) Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the
weighted-average method. The cost of finished goods and work in process comprises raw
materials and other direct/indirect costs. It excludes borrowing costs. The item by item approach is
used in applying the lower of cost and net realizable value. Net realizable value is the estimated
selling price in the ordinary course of business, less the estimated cost of completion and
applicable variable selling expenses.