Asus 2015 Annual Report Download - page 248

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D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at each end of the financial reporting period. If expectations for the assets’ residual
values and useful lives differ from previous estimates or the patterns of consumption of the
assets’ future economic benefits embodied in the assets have changed significantly, any change
is accounted for as a change in estimate under IAS 8, “Accounting Policies, Changes in
Accounting Estimates and Errors”, from the date of the change. The estimated useful lives of
the buildings are 10~50 years, machinery and equipment are 3 years and miscellaneous
equipment are 1~15 years.
(15) Leased assets (lessee)
An operating lease is a lease that the lessor assumes substantially all the risks and rewards
incidental to ownership of the leased asset. Payments made under an operating lease (net of any
incentives received from the lessor) are recognized in profit or loss on a straight-line basis over
the lease term.
(16) Investment property
An investment property is stated initially at its cost and measured subsequently using the cost
model. Except for land, investment property is depreciated on a straight-line basis over its
estimated useful life of 50 years.
(17) Intangible assets
Computer software is amortised on a straight-line basis over its estimated useful life of 1~5 years.
(18) Impairment of non-financial assets
A. The Company assesses at each end of the financial reporting period the recoverable amounts of
those assets where there is an indication that they are impaired. An impairment loss is
recognized for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value
in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss
for an asset in prior years no longer exist or decrease, the impairment loss shall be reversed to
the extent of the loss previously recognized in profit or loss. However, the reversal should not
exceed the carrying amount, net of depreciation or amortisation had the impairment not been
recognized.
B. The recoverable amounts of goodwill shall be evaluated periodically. An impairment loss is
recognized for the amount by which the asset’s carrying amount exceeds its recoverable
amount. Impairment loss of goodwill previously recognized in profit or loss shall not be
reversed in the following years.
(19) Notes and trade payables
Notes and trade payables are obligations to pay for goods or services that have been acquired from
suppliers in the ordinary course of business. They are recognized initially at fair value and
subsequently measured at amortised cost using the effective interest method. Due to the
insignificant discount effect on the non-interesting bearing short-term payables, they are measured
at the original invoice amount.