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Provisions (Tables)
 12 Months Ended
Dec. 31, 2019
Provisions [Abstract]  
Summary of Provisions

 

 

 

December 31

 

 

 

2018

 

 

2019

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Warranties

 

$

132

 

 

$

173

 

Onerous contracts

 

 

19

 

 

 

67

 

Employee benefits

 

 

51

 

 

 

59

 

Others

 

 

5

 

 

 

5

 

 

 

$

207

 

 

$

304

 

 

 

 

 

 

 

 

 

 

Current

 

$

128

 

 

$

207

 

Noncurrent

 

 

79

 

 

 

97

 

 

 

$

207

 

 

$

304

 

 
Movements in Provisions

 

 

Warranties

 

 

Onerous Contracts

 

 

Employee Benefits

 

 

Trade-in Rights

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Balance on January 1, 2017

 

$

111

 

 

$

—

 

 

$

38

 

 

$

31

 

 

$

5

 

 

$

185

 

Additional provisions recognized

 

 

79

 

 

 

—

 

 

 

7

 

 

 

69

 

 

 

—

 

 

 

155

 

Used / forfeited during the year

 

 

(58

)

 

 

—

 

 

 

(2

)

 

 

(13

)

 

 

—

 

 

 

(73

)

Balance on December 31, 2017

 

$

132

 

 

$

—

 

 

$

43

 

 

$

87

 

 

$

5

 

 

$

267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on January 1, 2018

 

$

132

 

 

$

—

 

 

$

43

 

 

$

87

 

 

$

5

 

 

$

267

 

Effect of retrospective application of IFRS 15

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(87

)

 

 

—

 

 

 

(87

)

Balance on January 1, 2018 as adjusted

 

 

132

 

 

 

—

 

 

 

43

 

 

 

—

 

 

 

5

 

 

 

180

 

Additional provisions recognized

 

 

164

 

 

 

19

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

192

 

Used / forfeited during the year

 

 

(164

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(165

)

Balance on December 31, 2018

 

$

132

 

 

$

19

 

 

$

51

 

 

$

—

 

 

$

5

 

 

$

207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on January 1, 2019

 

$

132

 

 

$

19

 

 

$

51

 

 

$

—

 

 

$

5

 

 

$

207

 

Additional provisions recognized

 

 

127

 

 

 

48

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

184

 

Used / forfeited during the year

 

 

(86

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(87

)

Balance on December 31, 2019

 

$

173

 

 

$

67

 

 

$

59

 

 

$

—

 

 

$

5

 

 

$

304

 

 

 

a.

The provision for warranties claims represents the present value of the management’s best estimate of the future outflow of economic benefits that will be required under the Company’s obligation for warranties in sales agreements.  The estimate has been made based on the historical warranty experience.

 

b.

The provision for employee benefits represents vested long-term service compensation accrued.

 

c.

The provision for trade-in right in 2017 was based on the management’s judgments to estimate the trade-in right of products exercised by customers in the future.  The provision was recognized as a reduction of revenue in the period in which the goods are sold.

 

d.

The provision for onerous contracts represents the present obligation resulting from the measurement for the unavoidable costs of meeting the Company’s contractual obligations exceed the economic benefits expected to be received from the contracts.