D-Link 2013 Annual Report Download - page 29
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D-LINK CORPORATION AND SUBSIDIARIES
Notes to the consolidated financial statements
(Continued)
Non-monetary items denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was
determined. Non-monetary items in a foreign currency that are measured based on historical cost
are translated using the exchange rate at the date of transaction. Foreign currency differences
are recognized in profit or loss, except for available-for-sale financial asset which are recognized
in other comprehensive income.
(2) Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments
arising on acquisition, are translated to the Consolidated Company’s functional currency at
exchange rates at the reporting date. Income and expenses of foreign operations are translated to
the Consolidated Company’s functional currency at average exchange rate for the period. Foreign
currency differences are recognized in other comprehensive income.
(e) Classification of current and non-current assets and liabilities
An entity shall classify an asset as current when:
(1) It expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
(2) It holds the asset primarily for the purpose of trading;
(3) It expects to realize the asset within twelve months after the reporting period; or
(4) The asset is cash and cash equivalent (as defined in IAS 7) unless the asset is restricted from
being exchanged or used to settle a liability for at least twelve months after the reporting period.
An entity shall classify all other assets as non-current.
An entity shall classify a liability as current when:
(1) It expects to settle the liability in its normal operating cycle;
(2) It holds the liability primarily for the purpose of trading;
(3) The liability is due to be settled within twelve months after the reporting period; or
(4) It does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting period. Terms of a liability that could, at the option of the counterparty,
result in it is settlement by the issue of equity instruments do not affect its classification.
An entity shall classify all other liabilities as non-current.
(f) Cash and cash equivalents
Cash and cash equivalents comprise cash balances, call deposits and all highly liquid investments
subject to insignificant risk of changes in value.
A time deposit is qualified as a cash equivalent when it has a maturity of three months or less from the
date of acquisition that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value. Also, it is held for the purpose of short-term cash commitments
rather than for investment or other purposes.