Asus 2015 Annual Report Download - page 271

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12. OTHERS
(1) Capital management
The Company’s objectives when managing capital are to safeguard the Company’s ability to
continue as a going concern in order to provide returns for shareholders and to maintain an optimal
capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure,
the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt. The Company monitors capital on the
basis of the liability ratio. This ratio is calculated as total liabilities by total assets. Total liabilities
is calculated as “current liabilities plus non-current liabilities” as shown in the separate balance
sheets.
During 2015, the Company’s strategy was to maintain the liability ratio within reasonable security
range, which was unchanged from 2014. The liability ratios are as follows:
(2) Financial instruments
A. Fair value information of financial instruments
The carrying values of financial instruments measured at non fair value (including cash and
cash equivalents, trade receivables, other receivables, refundable deposits, notes and trade
payables, other payables - accrued expenses, other current liabilities and guarantee deposits
received) are reasonably approximate to the fair values. Please refer to Note 12(3) for the fair
value information of financial instruments measured at fair value.
B. Financial risk management policies
(A) The Company’s operating activities expose the Company to a variety of financial risks,
including market risk (including foreign exchange risk, interest rate risk and price risk),
credit risk and liquidity risk. The Company’s overall risk management programme focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects
on the Company’s financial position and financial performance. The Company uses variety
of derivative financial instruments to hedge certain risk exposures. Please refer to Note
6(2).
(B) The Company’s key financial plans are all reviewed by the board of directors under the
related principles and internal control system. When executing the financial plans, the
Company’s treasury departments will follow the financial operating procedures in
accordance with the overall financial risk management and proper segregation of duties.
C. Nature and degree of significant financial risks
(A) Market risk
Foreign exchange risk
a. The Company operates internationally and is exposed to foreign exchange risk arising
from various currency exposures, primarily with respect to the USD. Foreign exchange
2015/12/31 2014/12/31
Total liabilities 91,759,438$ 112,553,796$
Total equity 167,351,939 163,642,210
Total assets 259,111,377$ 276,196,006$
Liability ratio 35.41% 40.75%