Asus 2015 Annual Report Download - page 250

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(25) Employee benefits
A. Short-term employee benefits
Short-term employee benefits are measured at the undiscounted amount of the benefits
expected to be paid in respect of service rendered by employees in a period and should be
recognized as expenses in that period when the employees render service.
B. Pensions
(A) Defined contribution plans
For defined contribution plans, the contributions are recognized as pension expenses when
they are due on an accrual basis. Prepaid contributions are recognized as an asset to the
extent of a cash refund or a reduction in the future payments.
(B) Defined benefit plans
a. Net obligation under a defined benefit plan is defined as the present value of an amount
of pension benefits that employees will receive on retirement for their services with the
Company in current period or prior periods. The liability recognized in the balance
sheets in respect of defined benefit pension plans is the present value of the defined
benefit obligation at the end of the financial reporting period less the fair value of plan
assets. The defined benefit net obligation is calculated annually by independent
actuaries using the projected unit credit method. The rate used to discount is determined
by using interest rates of government bonds (at the end of the financial reporting period)
of a currency and term consistent with the currency and term of the employment benefit
obligation.
b. Remeasurement arising on defined benefit plans are recognized in other comprehensive
income in the period in which they arise and are recorded as other equity.
c. Past service costs are recognized immediately in profit or loss.
(C) Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of
employment as a result from either the Company’s decision to terminate an employee’s
employment before the normal retirement date, or an employee’s decision to accept an
offer of redundancy benefits in exchange for the termination of employment. The
Company recognizes expense when it can no longer withdraw an offer of termination
benefits or it recognizes related restructuring cost, whichever is earlier. Benefits that are
expected to be due more than 12 months after balance sheets date shall be discounted to
their present value.
(D) Employees’ compensation, directors’ and supervisors’ remuneration
Employees’ compensation and directors’ and supervisors’ remuneration are recognized as
expenses and liabilities, provided that such recognition is required under legal or
constructive obligation and those amounts can be reliably estimated. Any difference
between the resolved amounts and the subsequently actual distributed amounts is
accounted for as changes in estimates. If employee compensation is distributed by shares,
the Company calculates the number of shares based on the closing price at the previous
day of the board meeting resolution.