XML 75 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Value Measurement
 12 Months Ended
Dec. 31, 2012
Fair Value Measurement
21.

FAIR VALUE MEASUREMENT

ASC subtopic 820-10 (“ASC 820-10”), Fair Value Measurements and Disclosures: Overall, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets

Level 2—Include other inputs that are directly or indirectly observable in the marketplace

Level 3—Unobservable inputs which are supported by little or no market activity

ASC 820-10 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Assets and liabilities measured or disclosed at fair value

In accordance with ASC 820-10, the Company measures available-for-sale securities at fair value on a recurring basis. The fair values of the Company’s available-for-sale securities as measured and held-to-maturity securities as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates.

The Company measures certain financial assets, including equity method investments and cost method investments, at fair value on a nonrecurring basis only if an impairment charge were to be recognized. The Company’s non-financial assets, such as intangible assets, goodwill and fixed assets, would be measured at fair value only if they were determined to be impaired on an other-than-temporary basis.

 

Assets measured or disclosed at fair value are summarized below (in thousands):

 

          Fair value measurement or disclosure
at December 31, 2011 using		        
    Total fair value  at
December 31, 2011		     Quoted prices in
active markets for
identical assets
(Level 1)		     Significant other
observable
inputs
(Level 2)		     Significant
unobservable
inputs
(Level 3)		     Total Losses  
    RMB     RMB     RMB     RMB     RMB  

Fair value disclosure

          

Cash equivalents

          

Time deposits

     2,419,726          2,419,726       

Money market fund

     192,324        192,324         
         
         

Short-term investments

          

Held-to-maturity securities

          

Fixed-rate investments

     9,834,275          9,834,275       

Adjustable-rate investments

     100,027          100,027       

Fair value measurement

          

Recurring

          

Short-term investments

          

Available-for-sale securities

          

Adjustable-rate investments

     102,682          102,682       

Nonrecurring

          

Long-term investments

     —              —          (47,886 ) 

Intangible assets

     —              —          (8,040 ) 

Goodwill

     —              —          (113,011 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets measured at fair value

     102,682        —          102,682        —          (168,937 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The Company has no assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2011.

As of December 31, 2011, certain cost and equity method investments, goodwill and intangible assets were measured using significant unobservable inputs (Level 3) and written down from their respective carrying value to fair value of nil, with impairment charges incurred and recorded in earnings for the year then ended.

 

          Fair value measurement or disclosure at
December 31, 2012 using		        
    Total fair value at
December 31, 2012		     Quoted prices in
active  markets for
identical assets
(Level 1)		     Significant  other
observable
inputs
(Level 2)		     Significant
unobservable
inputs
(Level 3)		     Total losses  
    RMB     US$     RMB     RMB     RMB     RMB     US$  

Fair value disclosure

              

Cash equivalents

              

Time deposits

     3,034,443        487,062          3,034,443         

Money market fund

     4,854,278        779,165        4,854,278           

Short-term investments

              

Held-to-maturity securities

              

Fixed-rate investments

     17,086,252        2,742,533          17,086,252         

Long-term investments

              

Fixed-rate held-to-maturity investments

     514,614        82,601          514,614         

Long-term notes payable

     9,420,285        1,512,060        9,420,285           

Fair value measurement

              

Recurring

              

Short-term investments

              

Available-for-sale securities
Fixed-rate investments

     3,514,399        564,100          3,514,399         

Adjustable-rate investments

     17,073        2,740          17,073         

Non-recurring

              

Long-term investments

     —          —              —          (169,180 )      (27,155 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets measured at fair value

     3,531,472        566,840        —          3,531,472        —          (169,180 )      (27,155 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

The Company has no assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2012.

As of December 31, 2012, certain cost method investments (Note 4) were measured using significant unobservable inputs (Level 3) and written down from their respective carrying value to fair value of nil, with impairment charges incurred and recorded in earnings for the year then ended.