Samsung 2008 Annual Report Download - page 69

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
that is attributable to a particular risk. The effective portion of the
gain or loss on a derivative instrument designated as a cash flow
hedge is recorded as a accumulated other comprehensive income
and the ineffective portion is recorded in current operations. The
effective portion of the gain or loss recorded as accumulated other
comprehensive income is reclassified to current operations in the
same period during which the hedged forecasted transaction
affects earnings. If the hedged transaction results in the acquisition
of an asset or the incurrence of a liability, the gain or loss recognized
as accumulated other comprehensive income is added to or
deducted from the asset or the liability.
ASSET IMPAIRMENT
When the book value of an asset is significantly greater than its
recoverable value due to obsolescence, physical damage, or the
decline in the fair value of the asset, the decline in value is deducted
from the book value and recognized as an asset impairment loss in
the current period.
3. UNITED STATES DOLLAR AMOUNTS
The Company operates primarily in Korean won and its official
accounting records are maintained in Korean won. The U.S. dollar
amounts, provided herein, represent supplementary information solely
for the convenience of the reader. All won amounts are expressed in
U.S. dollars at the rate of ￦1,257 to US$1, the exchange rate in effect
on December 31, 2008. Such presentation is not in accordance with
generally accepted accounting principles in either the Republic of
Korea or the United States, and should not be construed as a repre-
sentation that the won amounts shown could be readily converted,
realized or settled in U.S. dollars at this or at any other rate.
The 2007 U.S. dollar amounts, which were previously expressed at
￦938 to US$1, the rate in effect on December 31, 2007, have been
restated to reflect the exchange rate in effect on December 31, 2008.
4. CASH SUBJECT TO WITHDRAWAL RESTRICTIONS
Cash deposits subject to withdrawal restrictions as of December 31, 2008 and 2007, consist of the following:
(In millions of Korean won)
2008 2007
Short-term financial instruments Government-sponsored
research and development projects
￦
24,505
￦
35,632
Other activities 36,228 34,548
￦
60,733
￦
70,180
Long-term deposits and other assets Special deposits
￦
60
￦
19
Other activities 9 374
￦
69
￦
393
5. SHORT-TERM AVAILABLE-FOR-SALE SECURITIES
Short-term available-for-sale securities as of December 31, 2008 and 2007, consist of the following:
(In millions of Korean won)
1. Beneficiary certificates as of December 31, 2008 and 2007, consist of the following.
2. The Balance as of December 31, 2007, includes accrued interest income amounting to
￦
2,677 million.
(In millions of Korean won)
2008 2007 Maturity
Beneficiary certificates ¹
￦
982,067
￦
775,493 Within 1 year
Financial institution bonds ² - 147,340 Within 1 year
￦
982,067
￦
922,833
2008 2007
Call loan
￦
157
￦
9,151
Certificates of deposit 231,561 270,546
Bonds 622,911 392,414
Time deposits 127,307 101,500
Others 131 1,882