At the balance sheet date, foreign-currency nonmonetary assets (such as equity instruments) and liabilities that are measured  at fair value are revalued using prevailing exchange rates. When a gain or loss on a nonmonetary item is recognized in  stockholders’ equity, any exchange component of that gain or loss shall be recognized in stockholders’ equity. Conversely,  when a gain or loss on a non-monetary item is recognized in earnings, any exchange component of that gain or loss shall be  recognized in earnings. Foreign-currency nonmonetary assets and liabilities that are carried at cost continue to be stated at exchange rates at trade  dates. The financial statements of foreign equity investees and consolidated subsidiaries are translated into New Taiwan dollars at  the following exchange rates. Assets and liabilities - spot rates at year-end; stockholders’ equity - historical rates, income and  expenses - average rates during the year. The resulting translation adjustments of financial statements shall be recorded as cumulative translation adjustments, a separate  component of stockholders’ equity.  Under above principles, certain estimates and assumptions have been used for the allowance for doubtful accounts, allowance  for loss on inventories, depreciation of property, plant and equipment, impairment of assets, bonuses to employees, directors  and supervisors, pension cost, and income tax, etc. Actual results may differ from these estimates. Current assets include cash and cash equivalents, and those assets held primarily for trading purposes or to be realized, sold  or consumed within one year from the balance sheet date. All other assets are classified as noncurrent. Current liabilities are  obligations incurred for trading purposes or to be settled within one year from the balance sheet date. All other liabilities are  classified as noncurrent. LED engages mainly in the development of property for rent and sale. The assets and liabilities of LED related to property  development within its operating cycle, which is over one year, are classified as current items. Assets and liabilities related to  property development over its operating cycle are classified as noncurrent items. Cash equivalents are commercial paper and treasury bills purchased with maturities of three months or less from the date of  acquisition. The carrying amount approximates fair value.  Financial instruments classified as financial assets or financial liabilities at fair value through profit or loss (“FVTPL”) include  financial assets or financial liabilities held for trading and are designated as at FVTPL on initial recognition. The Company  recognizes a financial asset or a financial liability when the Company becomes a party to the contractual provisions of the  financial instrument. A financial asset is derecognized when the Company losses control of its contractual rights over the  financial asset. A financial liability is derecognized when the obligation specified in the relevant contract is discharged,  cancelled or expired. Financial instruments at FVTPL are initially measured at fair value. Transaction costs directly attributable to the acquisition of  financial assets or financial liabilities at FVTPL are recognized as expenses as incurred. Financial assets or financial liabilities  at FVTPL are remeasured at fair value, subsequently with changes in fair value recognized in earnings. Cash dividends  received subsequently (including those received in the period of investment) are recognized as income. On derecognition of a  financial asset or a financial liability, the difference between its carrying amount and the sum of the consideration received and  F-16 PART III Financial Assets and Liabilities at Fair Value Through Profit or Loss Cash Equivalents Current and Noncurrent Assets and Liabilities Accounting Estimates