XML 67 R52.htm IDEA: XBRL DOCUMENT v3.19.1
Application of New and Amended International Financial Reporting Standards (Tables)
 12 Months Ended
Dec. 31, 2018
Description Of Expected Impact Of Initial Application Of New Standards Or Interpretations [Abstract]  
Schedule of Original And New Measurement Categories and Carrying Amounts under IAS 39 and IFRS 9

The following table shows the original measurement categories and carrying amounts under IAS 39 and the new measurement categories and carrying amounts under IFRS 9 for each class of the Company’s financial assets and financial liabilities as of January 1, 2018.

 

 

 

Measurement Category

 

Carrying Amount

 

 

 

 

 

IAS 39

 

IFRS 9

 

IAS 39

 

 

IFRS 9

 

 

Note

 

 

 

 

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

 

 

(In Millions)

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

Loans and receivables

 

Amortized cost

 

$

28,825

 

 

$

28,825

 

 

1)

Equity securities

 

Available-for-sale

 

FVTPL

 

 

596

 

 

 

596

 

 

2)

 

 

Available-for-sale

 

FVOCI- equity

investments

 

 

5,155

 

 

 

6,997

 

 

2)

Trade notes and accounts

   receivable, receivables from

   related parties, other current

   monetary assets and refundable

   deposits

 

Loans and receivables

 

Amortized cost

 

 

40,158

 

 

 

40,158

 

 

1)

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term loans, trade notes

   and accounts payable, payables

   to related parties, partial other

   payables, customers’ deposit

   and loan-term loans

 

Amortized cost

 

Amortized cost

 

 

39,725

 

 

 

39,725

 

 

 

Derivatives

 

Held-for-trading

 

FVTPL

 

 

1

 

 

 

1

 

 

 

 

 

Hedging derivative

financial liabilities

 

Hedging financial

liabilities

 

 

1

 

 

 

1

 

 

3)

 

 

 

IAS 39

Carrying

Amount

January 1,

2018

 

 

Reclassifi-

cations

 

 

Remea-

surements

 

 

IFRS 9

Carrying

Amount

January 1,

2018

 

 

Retained

Earnings

Effect on

January 1,

2018

 

 

Other

adjustment

Effect on

January 1,

2018

 

 

Noncontrolling

Interests

Effect on

January 1,

2018

 

 

Note

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets measured at

   FVTPL

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

Add:  reclassification from

   available for sale (IAS 39) -

   mandatory reclassification

 

 

—

 

 

 

596

 

 

 

—

 

 

 

596

 

 

 

6

 

 

 

(6

)

 

 

—

 

 

2)

 

 

 

—

 

 

 

596

 

 

 

—

 

 

 

596

 

 

 

6

 

 

 

(6

)

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities measured at

   FVTPL

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets measured at

   FVOCI- equity investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Add:  reclassification from

   available for sale (IAS 39) -

   designated at January 1, 2018

 

 

—

 

 

 

5,155

 

 

 

1,842

 

 

 

6,997

 

 

 

1,516

 

 

 

327

 

 

 

(1

)

 

2)

 

 

 

—

 

 

 

5,155

 

 

 

1,842

 

 

 

6,997

 

 

 

1,516

 

 

 

327

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets measured at Amortized cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Add:  reclassification from loans

   and receivables (IAS 39)

 

 

—

 

 

 

68,983

 

 

 

—

 

 

 

68,983

 

 

 

—

 

 

 

—

 

 

 

—

 

 

1)

 

 

 

—

 

 

 

68,983

 

 

 

—

 

 

 

68,983

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities measured at amortized cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Add:  reclassification from

   amortized cost (IAS 39)

 

 

—

 

 

 

(39,725

)

 

 

—

 

 

 

(39,725

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

—

 

 

 

(39,725

)

 

 

—

 

 

 

(39,725

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedging financial liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Add:  reclassification from

   Hedging derivative instrument

   (IAS 39)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

3)

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

(1

)

 

$

35,008

 

 

$

1,842

 

 

$

36,849

 

 

$

1,522

 

 

$

321

 

 

$

(1

)

 

 

 

1)

Cash and cash equivalents, trade notes and accounts receivable, receivables from related parties, other current monetary assets and refundable deposit that were classified as loans and receivables under IAS 39 are now classified as financial assets measured at amortized cost with assessment of expected credit loss.

 

2)

The Company elected to reclassify equity securities originally classified as available-for-sale under IAS 39 to FVTPL and designated at FVOCI in accordance with IFRS 9. As a result, the related other equity - unrealized gain or loss on available-for-sale financial assets of $6 million and $556 million were reclassified to retained earnings and to other equity - unrealized gain or loss on financial assets at FVOCI, respectively.

Equity investments in non-listed stocks previously carried at cost under IAS 39 are designated as FVOCI and remeasured at fair values.  As a result, financial assets at FVOCI and other equity - unrealized gain or loss on financial assets at FVOCI were increased by $1,842 million and $1,843 million, respectively, and noncontrolling interests was decreased by $1 million. Some investments that previously classified as available-for-sale and measured at cost under IAS 39 were classified mandatorily as FVTPL under IFRS 9 as the contractual cash flows are not solely payments of principal and interest on the principal outstanding and such investments are not equity instruments.

The Company recognized impairment loss on certain investments in equity securities previously classified as available-for-sale and measured at cost and the loss was accumulated in retained earnings under IAS 39.  Since those investments were designated as financial assets measured at FVOCI under IFRS 9 and no impairment assessment is required, an adjustment was made that resulted in a decrease of $1,516 million in other equity - unrealized gain or loss on financial assets at FVOCI and an increase of the $1,516 million in retained earnings on January 1, 2018.

 

3)

Upon the application of IFRS 9, all derivative and non-derivative financial assets and financial liabilities which were designated as hedging instruments are presented as hedging financial assets and hedging financial liabilities for starting from January 1, 2018.

As the Company expects there is no tax obligation upon the disposal of the available-for-sale financial assets, the deferred income tax liabilities was decreased by $1 million, unrealized gain or loss on available-for-sale financial assets was increased by $4 million and noncontrolling interests was decreased by of $3 million, respectively.
Schedule of Anticipated Impacts on Assets, Liabilities and Equity from Retrospective Application of IFRS 15

Impact on items of assets, liabilities and equity

 

 

 

Carrying

Amount Before

Retrospective

Adjustments as

of January 1,

2018

 

 

Adjustments

Arising from

Initial

Application of

IFRS 15

 

 

Carrying

Amount After

Retrospective

Adjustments as

of January 1,

2018

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Contract assets - current

 

$

—

 

 

$

6,065

 

 

$

6,065

 

Trade notes and accounts receivable, net

 

$

31,941

 

 

 

(118

)

 

$

31,823

 

Inventories

 

$

8,840

 

 

 

(132

)

 

$

8,708

 

Prepayments - current

 

$

2,188

 

 

 

(7

)

 

$

2,181

 

Other current assets

 

$

2,183

 

 

 

132

 

 

$

2,315

 

Contract assets - noncurrent

 

$

—

 

 

 

3,917

 

 

$

3,917

 

Incremental costs of obtaining contracts

 

$

—

 

 

 

2,474

 

 

$

2,474

 

Total effect on assets

 

 

 

 

 

$

12,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract liabilities - current

 

$

—

 

 

$

8,004

 

 

$

8,004

 

Current tax liabilities

 

$

8,674

 

 

 

2,227

 

 

$

10,901

 

Provisions - current

 

$

189

 

 

 

(88

)

 

$

101

 

Advance receipts

 

$

8,842

 

 

 

(8,842

)

 

$

—

 

Other current liabilities

 

$

1,081

 

 

 

72

 

 

$

1,153

 

Contract liabilities - noncurrent

 

$

—

 

 

 

2,626

 

 

$

2,626

 

Deferred revenue

 

$

3,612

 

 

 

(3,612

)

 

$

—

 

Other noncurrent liabilities

 

$

3,458

 

 

 

1,072

 

 

$

4,530

 

Total effect on liabilities

 

 

 

 

 

$

1,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total effect on equity (unappropriated earnings)

 

$

54,633

 

 

$

10,872

 

 

$

65,505

 

 
Summary of Increase (Decrease) in Assets, Liabilities and Equity Resulting from the Application of IFRS 15 On the Balance Sheet Date

The following table shows the increase (decrease) in assets, liabilities and equity resulting from the application of IFRS 15 on the balance sheet date.

 

 

 

December 31

 

 

 

2018

 

 

 

NT$

 

 

 

(In Millions)

 

Contract assets - current

 

$

4,869

 

Trade notes and accounts receivable, net

 

 

(109

)

Inventories

 

 

(80

)

Prepayments - current

 

 

(12

)

Other current assets

 

 

80

 

Contract assets - noncurrent

 

 

2,344

 

Incremental costs of obtaining contracts

 

 

1,335

 

Assets

 

$

8,427

 

 

 

 

 

 

Contract liabilities - current

 

$

10,688

 

Current tax liabilities

 

 

1,419

 

Provisions - current

 

 

(52

)

Advance receipts

 

 

(11,277

)

Other current liabilities

 

 

340

 

Contract liabilities - noncurrent

 

 

2,595

 

Deferred revenue

 

 

(3,748

)

Other noncurrent liabilities

 

 

1,172

 

Liabilities

 

$

1,137

 

 

 

 

 

 

Equity (unappropriated earnings)

 

$

7,290

 

 
Schedule of Increase (Decrease) in Net Income Resulting from the Application of IFRS 15

The following table shows the increase (decrease) in net income resulting from the application of IFRS 15.

 

 

 

Year Ended

December 31

 

 

 

2018

 

 

 

NT$

 

 

 

(In Millions)

 

Revenues

 

$

(3,228

)

Operating costs

 

 

2,455

 

Operating expenses

 

 

(1,293

)

Income from operations

 

 

(4,390

)

Income tax expense

 

 

(808

)

Net income

 

$

(3,582

)

 

 

 

 

 

Decrease in net income attributable to:

 

 

 

 

Stockholders of the parent

 

$

(3,582

)

Noncontrolling interests

 

 

—

 

 

 

$

(3,582

)

Impact on earnings per share(NT$):

 

 

 

 

Basic earnings per share

 

$

(0.46

)

Diluted earnings per share

 

$

(0.46

)

 
Schedule of Anticipated Impacts on Assets, Liabilities and Equity from Retrospective Application of IFRS 16

Anticipated impacts on assets, liabilities and equity

 

 

 

Carrying

Amount as of

December 31,

2018

 

 

Adjustments

Arising from

Initial

Application of

IFRS 16

 

 

Adjusted

Carrying

Amount as of

January 1, 2019

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Prepayments - current

 

$

1,873

 

 

$

(245

)

 

$

1,628

 

Property, plant and equipment

 

$

288,914

 

 

 

(1,309

)

 

$

287,605

 

Right-of-use assets

 

$

—

 

 

 

12,163

 

 

$

12,163

 

Deferred income tax assets

 

$

3,554

 

 

 

26

 

 

$

3,580

 

Prepayments - noncurrent

 

$

3,463

 

 

 

(414

)

 

$

3,049

 

Total effect on assets

 

 

 

 

 

$

10,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract liabilities - current

 

$

10,688

 

 

$

214

 

 

$

10,902

 

Lease liabilities - current

 

$

—

 

 

 

3,394

 

 

$

3,394

 

Other payables

 

$

23,315

 

 

 

(48

)

 

$

23,267

 

Other current liabilities

 

$

1,382

 

 

 

(214

)

 

$

1,168

 

Contract liabilities - noncurrent

 

$

2,595

 

 

 

3,483

 

 

$

6,078

 

Deferred income tax liabilities

 

$

1,992

 

 

 

—

 

 

$

1,992

 

Lease liabilities - noncurrent

 

$

—

 

 

 

6,946

 

 

$

6,946

 

Other noncurrent liabilities

 

$

4,793

 

 

 

(3,483

)

 

$

1,310

 

Total effect on liabilities

 

 

 

 

 

$

10,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unappropriated earnings

 

$

66,626

 

 

$

(51

)

 

$

66,575

 

Noncontrolling interests

 

$

9,857

 

 

$

(20

)

 

$

9,837

 

Total effect on equity

 

 

 

 

 

$

(71

)