Asus 2015 Annual Report Download - page 247

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I. Unrealized gains on transactions between the Company and its associates are eliminated to the
extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless
the transaction provides evidence of an impairment of the asset transferred. Accounting policies
of associates have been adjusted where necessary to ensure consistency with the policies
adopted by the Company.
J. In the case that an associate issues new shares or buys treasury stocks (including the Company
does not acquire or dispose shares proportionately), which results in a change in the Company’s
ownership percentage of the associate but maintains significant influence on the associate, then
“capital surplus” and “investments accounted for under equity method” shall be adjusted for the
increase or decrease of its share of equity interest. If the above condition causes a decrease in
the Company’s ownership percentage of the associate, in addition to the above adjustment, the
amounts previously recognized in other comprehensive income in relation to the associate are
reclassified to profit or loss proportionately on the same basis as would be required if the
relevant assets or liabilities were disposed of.
K. Upon loss of significant influence over an associate, the Company remeasures any investment
retained in the former associate at its fair value. Any difference between fair value and carrying
amount is recognized in profit or loss.
L. Upon loss of significant influence over an associate, the amounts previously recognized in
other comprehensive income and as capital surplus in relation to the associate, are reclassified
to profit or loss, on the same basis as would be required if the relevant assets or liabilities were
disposed of. If it still retains significant influence over this associate, then the amounts
previously recognized in other comprehensive income and as capital surplus in relation to the
associate are reclassified to profit or loss proportionately.
M. According to “Regulations Governing the Preparation of Financial Reports by Securities
Issuers”, profit and other comprehensive income in the separate financial statements should be
the same as profit and other comprehensive income attributable to shareholders of the parent in
the consolidated financial statements, and the equity in the separate financial statements should
be the same as the equity attributable to shareholders of the parent in the consolidated financial
statements.
(14) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during
the construction period are capitalized.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of the replaced part is derecognized. All other repairs and maintenance are charged to
profit or loss during the financial period in which they are incurred.
C. Except for land which is not depreciated, other property, plant and equipment apply cost model
and are depreciated using the straight-line method to allocate their cost over their estimated
useful lives. If each component of property, plant and equipment is significant, it should be
depreciated separately.