XML 143 R21.htm IDEA: XBRL DOCUMENT v3.20.1
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2019
Disclosure Of Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

16.

PROPERTY, PLANT AND EQUIPMENT

 

 

 

December 31

 

 

 

2018

 

 

 

NT$

 

 

 

(In Millions)

 

Carrying amount

 

 

 

 

Land

 

$

103,972

 

Land improvements

 

 

263

 

Buildings

 

 

44,784

 

Computer equipment

 

 

2,115

 

Telecommunications equipment

 

 

116,322

 

Transportation equipment

 

 

231

 

Miscellaneous equipment

 

 

2,582

 

Construction in progress and equipment to be accepted

 

 

18,645

 

 

 

$

288,914

 

 

 

 

Land

 

 

Land

Improvements

 

 

Buildings

 

 

Computer

Equipment

 

 

Telecommuni-

cations

Equipment

 

 

Transportation

Equipment

 

 

Miscellaneous

Equipment

 

 

Construction in

Progress and

Equipment to

be Accepted

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on

   January 1, 2017

 

$

103,872

 

 

$

1,581

 

 

$

67,738

 

 

$

14,295

 

 

$

715,692

 

 

$

3,866

 

 

$

8,943

 

 

$

20,141

 

 

$

936,128

 

Additions

 

 

—

 

 

 

—

 

 

 

30

 

 

 

78

 

 

 

193

 

 

 

1

 

 

 

193

 

 

 

25,574

 

 

 

26,069

 

Disposal

 

 

(158

)

 

 

(5

)

 

 

(108

)

 

 

(974

)

 

 

(13,739

)

 

 

(62

)

 

 

(402

)

 

 

—

 

 

 

(15,448

)

Effect of foreign

   exchange

   differences

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(172

)

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

(176

)

Others

 

 

365

 

 

 

19

 

 

 

5,034

 

 

 

764

 

 

 

20,080

 

 

 

29

 

 

 

784

 

 

 

(27,188

)

 

 

(113

)

Balance on

   December 31, 2017

 

$

104,079

 

 

$

1,595

 

 

$

72,694

 

 

$

14,162

 

 

$

722,054

 

 

$

3,834

 

 

$

9,515

 

 

$

18,527

 

 

$

946,460

 

Accumulated

   depreciation

   and impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on

   January 1, 2017

 

$

—

 

 

$

(1,248

)

 

$

(25,591

)

 

$

(11,582

)

 

$

(596,497

)

 

$

(3,237

)

 

$

(6,803

)

 

$

—

 

 

$

(644,958

)

Depreciation

   expenses

 

 

—

 

 

 

(50

)

 

 

(1,402

)

 

 

(1,192

)

 

 

(24,492

)

 

 

(330

)

 

 

(677

)

 

 

—

 

 

 

(28,143

)

Disposal

 

 

—

 

 

 

4

 

 

 

47

 

 

 

967

 

 

 

13,712

 

 

 

63

 

 

 

389

 

 

 

—

 

 

 

15,182

 

Effect of foreign

   exchange

   differences

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

45

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

47

 

Others

 

 

—

 

 

 

1

 

 

 

147

 

 

 

19

 

 

 

78

 

 

 

(9

)

 

 

(116

)

 

 

—

 

 

 

120

 

Balance on

   December 31, 2017

 

$

—

 

 

$

(1,293

)

 

$

(26,799

)

 

$

(11,788

)

 

$

(607,154

)

 

$

(3,513

)

 

$

(7,205

)

 

$

—

 

 

$

(657,752

)

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on

   January 1, 2018

 

$

104,079

 

 

$

1,595

 

 

$

72,694

 

 

$

14,162

 

 

$

722,054

 

 

$

3,834

 

 

$

9,515

 

 

$

18,527

 

 

$

946,460

 

Additions

 

 

—

 

 

 

—

 

 

 

21

 

 

 

52

 

 

 

159

 

 

 

—

 

 

 

334

 

 

 

27,413

 

 

 

27,979

 

Disposal

 

 

(71

)

 

 

—

 

 

 

—

 

 

 

(643

)

 

 

(31,984

)

 

 

(29

)

 

 

(623

)

 

 

—

 

 

 

(33,350

)

Effect of foreign

   exchange

   differences

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

60

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

60

 

Others

 

 

(36

)

 

 

6

 

 

 

196

 

 

 

687

 

 

 

25,459

 

 

 

77

 

 

 

648

 

 

 

(27,295

)

 

 

(258

)

Balance on

   December 31, 2018

 

$

103,972

 

 

$

1,601

 

 

$

72,911

 

 

$

14,258

 

 

$

715,748

 

 

$

3,882

 

 

$

9,874

 

 

$

18,645

 

 

$

940,891

 

(Continued)

 

 

 

 

Land

 

 

Land

Improvements

 

 

Buildings

 

 

Computer

Equipment

 

 

Telecommuni-

cations

Equipment

 

 

Transportation

Equipment

 

 

Miscellaneous

Equipment

 

 

Construction in

Progress and

Equipment to

be Accepted

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Accumulated

   depreciation

   and impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on January 1, 2018

 

$

—

 

 

$

(1,293

)

 

$

(26,799

)

 

$

(11,788

)

 

$

(607,154

)

 

$

(3,513

)

 

$

(7,205

)

 

$

—

 

 

$

(657,752

)

Depreciation

   expenses

 

 

—

 

 

 

(45

)

 

 

(1,356

)

 

 

(983

)

 

 

(24,236

)

 

 

(162

)

 

 

(679

)

 

 

—

 

 

 

(27,461

)

Disposal

 

 

—

 

 

 

—

 

 

 

—

 

 

 

632

 

 

 

31,952

 

 

 

29

 

 

 

615

 

 

 

—

 

 

 

33,228

 

Effect of foreign

   exchange

   differences

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(20

)

Others

 

 

—

 

 

 

—

 

 

 

28

 

 

 

(4

)

 

 

32

 

 

 

(5

)

 

 

(23

)

 

 

—

 

 

 

28

 

Balance on

   December 31, 2018

 

$

—

 

 

$

(1,338

)

 

$

(28,127

)

 

$

(12,143

)

 

$

(599,426

)

 

$

(3,651

)

 

$

(7,292

)

 

$

—

 

 

$

(651,977

)

(Concluded)

There was no indication that property, plant and equipment was impaired so the Company did not recognize any impairment loss for the years ended December 31, 2017 and 2018.

 

 

Depreciation expense in 2017 and 2018 is computed using the straight-line method over the following estimated service lives:

 

Land improvements

 

8-30 years

Buildings

 

 

Main buildings

 

35-60 years

Other building facilities

 

3-20 years

Computer equipment

 

2-8 years

Telecommunications equipment

 

 

Telecommunication circuits

 

2-30 years

Telecommunication machinery

and antennas equipment

 

2-30 years

Transportation equipment

 

3-10 years

Miscellaneous equipment

 

 

Leasehold improvements

 

1-6 years

Mechanical and air conditioner equipment

 

3-16 years

Others

 

1-10 years

 

 

 

December 31,

2019

 

 

 

NT$

 

 

 

(In Millions)

 

Assets used by the Company

 

$

276,370

 

Assets subject to operating leases

 

 

7,324

 

 

 

$

283,694

 

 

a.

Assets used by the Company

 

 

 

Land

 

 

Land

Improvements

 

 

Buildings

 

 

Computer

Equipment

 

 

Telecommuni-

cations

Equipment

 

 

Transportation

Equipment

 

 

Miscellaneous

Equipment

 

 

Construction in

Progress and

Equipment to

be Accepted

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on

   January 1, 2019

 

$

103,972

 

 

$

1,601

 

 

$

72,911

 

 

$

14,258

 

 

$

715,748

 

 

$

3,882

 

 

$

9,874

 

 

$

18,645

 

 

$

940,891

 

Effect of retrospective

application of IFRS 16

 

 

(3,617

)

 

 

(1

)

 

 

(3,583

)

 

 

—

 

 

 

(3,885

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,086

)

Balance on

   January 1, 2019 as adjusted

 

 

100,355

 

 

 

1,600

 

 

 

69,328

 

 

 

14,258

 

 

 

711,863

 

 

 

3,882

 

 

 

9,874

 

 

 

18,645

 

 

 

929,805

 

Additions

 

 

—

 

 

 

—

 

 

 

1,221

 

 

 

57

 

 

 

120

 

 

 

1

 

 

 

149

 

 

 

21,612

 

 

 

23,160

 

Disposal

 

 

(38

)

 

 

(7

)

 

 

(3

)

 

 

(1,916

)

 

 

(30,417

)

 

 

(51

)

 

 

(405

)

 

 

—

 

 

 

(32,837

)

Effect of foreign

   exchange

   differences

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(37

)

 

 

—

 

 

 

(1

)

 

 

(6

)

 

 

(44

)

Others

 

 

(1,214

)

 

 

25

 

 

 

455

 

 

 

606

 

 

 

24,503

 

 

 

80

 

 

 

473

 

 

 

(26,499

)

 

 

(1,571

)

Balance on

   December 31, 2019

 

$

99,103

 

 

$

1,618

 

 

$

71,001

 

 

$

13,005

 

 

$

706,032

 

 

$

3,912

 

 

$

10,090

 

 

$

13,752

 

 

$

918,513

 

Accumulated

   depreciation

   and impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on

   January 1, 2019

 

$

—

 

 

$

(1,338

)

 

$

(28,127

)

 

$

(12,143

)

 

$

(599,426

)

 

$

(3,651

)

 

$

(7,292

)

 

$

—

 

 

$

(651,977

)

Effect of retrospective

application of IFRS 16

 

 

—

 

 

 

1

 

 

 

1,265

 

 

 

—

 

 

 

2,576

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,842

 

Balance on

   January 1, 2019 as adjusted

 

 

—

 

 

 

(1,337

)

 

 

(26,862

)

 

 

(12,143

)

 

 

(596,850

)

 

 

(3,651

)

 

 

(7,292

)

 

 

—

 

 

 

(648,135

)

Depreciation

   expenses

 

 

—

 

 

 

(43

)

 

 

(1,301

)

 

 

(827

)

 

 

(23,906

)

 

 

(91

)

 

 

(688

)

 

 

—

 

 

 

(26,856

)

Disposal

 

 

—

 

 

 

6

 

 

 

3

 

 

 

1,909

 

 

 

30,380

 

 

 

51

 

 

 

402

 

 

 

—

 

 

 

32,751

 

Impairment losses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(64

)

 

 

(29

)

 

 

(93

)

Effect of foreign

   exchange

   differences

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

17

 

Others

 

 

—

 

 

 

(1

)

 

 

183

 

 

 

(7

)

 

 

22

 

 

 

(3

)

 

 

(21

)

 

 

—

 

 

 

173

 

Balance on

   December 31, 2019

 

$

—

 

 

$

(1,375

)

 

$

(27,977

)

 

$

(11,068

)

 

$

(590,338

)

 

$

(3,694

)

 

$

(7,662

)

 

$

(29

)

 

$

(642,143

)

 

CHPT evaluated that certain miscellaneous equipment, construction in progress and equipment to be accepted used for manufacturing specific PCB will not be used in the future and there was no active market for sale; therefore, CHPT determined that the recoverable amount of such assets was nil and recognized impairment losses of $89 million for the year ended December 31, 2019.  CHSI evaluated that certain miscellaneous equipment will not be used in the future and there was no active market for sale; therefore, CHSI determined that the recoverable amount of such assets was nil and recognized impairment losses of $4 million for the year ended December 31, 2019.  The aforementioned impairment losses were included in other income and expenses of statement of comprehensive income.

 

Depreciation expense for assets used by the Company in 2019 is computed using the straight-line method over the following estimated service lives:

 

Land improvements

 

10-30 years

Buildings

 

 

Main buildings

 

20-60 years

Other building facilities

 

3-15 years

Computer equipment

 

2-8 years

Telecommunications equipment

 

 

Telecommunication circuits

 

2-30 years

Telecommunication machinery

and antennas equipment

 

2-30 years

Transportation equipment

 

3-10 years

Miscellaneous equipment

 

 

Leasehold improvements

 

1-9 years

Mechanical and air conditioner equipment

 

3-16 years

Others

 

1-15 years

 

b.

Assets subject to operating leases

 

 

 

Land

 

 

Land

Improvements

 

 

Buildings

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on

   January 1, 2019

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Effect of retrospective

application of IFRS 16

 

 

3,617

 

 

 

1

 

 

 

3,583

 

 

 

7,201

 

Balance on

   January 1, 2019 as adjusted

 

 

3,617

 

 

 

1

 

 

 

3,583

 

 

 

7,201

 

Additions

 

 

—

 

 

 

—

 

 

 

4

 

 

 

4

 

Transferred from (to)

assets used by the Company

 

 

1,362

 

 

 

(1

)

 

 

255

 

 

 

1,616

 

Balance on

   December 31, 2019

 

$

4,979

 

 

$

—

 

 

$

3,842

 

 

$

8,821

 

Accumulated

   depreciation

   and impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on

   January 1, 2019

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Effect of retrospective

application of IFRS 16

 

 

—

 

 

 

(1

)

 

 

(1,265

)

 

 

(1,266

)

Balance on

   January 1, 2019 as adjusted

 

 

—

 

 

 

(1

)

 

 

(1,265

)

 

 

(1,266

)

Depreciation

   expenses

 

 

—

 

 

 

—

 

 

 

(74

)

 

 

(74

)

Transferred to (from)

assets used by the company

 

 

—

 

 

 

1

 

 

 

(158

)

 

 

(157

)

Balance on

   December 31, 2019

 

$

—

 

 

$

—

 

 

$

(1,497

)

 

$

(1,497

)

Balance on January 1,

2019 as adjusted, net

 

$

3,617

 

 

$

—

 

 

$

2,318

 

 

$

5,935

 

Balance on December 31,

2019, net

 

$

4,979

 

 

$

—

 

 

$

2,345

 

 

$

7,324

 

 

The Company leases out land and buildings with lease terms between 1 to 20 years.  The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods.

 

The future aggregate lease collection under operating lease for the freehold plant, property and equipment is as follows:

 

 

 

 

December 31,

2019

 

 

 

NT$

 

 

 

(In Millions)

 

Year 1

 

$

302

 

Year 2

 

 

273

 

Year 3

 

 

234

 

Year 4

 

 

191

 

Year 5

 

 

130

 

Onwards

 

 

1,224

 

 

 

$

2,354

 

 

The above items of property, plant and equipment subject to operating leases are depreciated on a straight-line basis over their estimated useful lives as follows:

 

Land improvements

 

10 years

Buildings

 

 

Main buildings

 

35-60 years

Other building facilities

 

3-15 years