D-Link 2013 Annual Report Download - page 36
Download and view the complete annual report
Please find page 36 of the 2013 D-Link annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.14
D-LINK CORPORATION AND SUBSIDIARIES
Notes to the consolidated financial statements
(Continued)
(m) Intangible assets
(1) Goodwill
(i) Recognition
Goodwill arises from acquisition of subsidiaries is included in intangible assets.
(ii) Subsequent measurement
Goodwill are carried at cost less accumulated impairment losses. As regards to the
investments accounted for using equity method, the carrying value of goodwill consists of
the carrying value of its investment. The impairment loss is attributed to parts of
investments accounted for using equity method other than goodwill or other assets.
(2) Other intangible asset
Other intangible asset are carried at cost less accumulated amortization and accumulated
impairment losses.
(3) Subsequent Expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other expenditure, including expenditure on
internally generated goodwill and brands, is recognized in profit or loss as incurred.
(4) Amortization
The amortized amount is the cost of an asset less its residual value.
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives
of intangible assets, other than goodwill, from the date that they are available for use. The
estimated useful lives for the current and comparative periods are as follows:
(i) Distribution channel: 5 years
(ii) Computer software: 3~5 years
(iii) Patents: 11~16 years
The residual value, amortization period, and amortization method for an intangible asset with a
finite useful life shall be reviewed at least annually at each fiscal year-end. Any change shall be
accounted for as changes in accounting estimates.
(n) Impairment – non-derivative financial assets
The Consolidated Company assesses at the end of each reporting period whether there is any indication
that an impairment loss recognized in prior periods for an asset other than goodwill may no longer
exist or may have decreased. If any such indication exists, the entity shall estimate the recoverable
amount of that asset.
An impairment loss recognized in prior periods for an asset other than goodwill shall be reversed if,
and only if, there has been a change in the estimates used to determine the asset’s recoverable amount
since the last impairment loss was recognized. If this is the case, the carrying amount of each asset or
cash-generating unit shall be increased to its recoverable amount, as a reversal of a previously
recognized impairment loss.