
	Mobile Broadband Concession			Computer Software			Goodwill			Others			Total
	NT$			NT$			NT$			NT$			NT$
	(In Millions)
Cost
Balance on January 1, 2020	$	59,965		$	3,430		$	236		$	378		$	64,009
Additions-acquired separately		48,373			226			—			6			48,605
Disposal		—			(338	)		—			(3	)		(341	)
Effect of foreign exchange differences		—			—			—			—			—
Acquired by business combinations (Note 14)		—			1			55			11			67
Others		—			1			—			—			1
Balance on December 31, 2020	$	108,338		$	3,320		$	291		$	392		$	112,341
Accumulated amortization and impairment
Balance on January 1, 2020	$	(14,293	)	$	(2,499	)	$	(36	)	$	(134	)	$	(16,962	)
Amortization expenses		(5,026	)		(371	)		—			(27	)		(5,424	)
Disposal		—			338			—			1			339
Impairment losses		—			—			(9	)		—			(9	)
Effect of foreign exchange differences		—			—			—			—			—
Acquired by business combinations (Note 14)		—			—			—			—			—
Balance on December 31, 2020	$	(19,319	)	$	(2,532	)	$	(45	)	$	(160	)	$	(22,056	)
Balance on December 31, 2020, net	$	89,019		$	788		$	246		$	232		$	90,285
Cost
Balance on January 1, 2021	$	108,338		$	3,320		$	291		$	392		$	112,341
Additions-acquired separately		—			225			—			31			256
Disposal		—			(344	)		—			(10	)		(354	)
Effect of foreign exchange differences		—			—			—			—			—
Others		—			2			—			—			2
Balance on December 31, 2021	$	108,338		$	3,203		$	291		$	413		$	112,245
Accumulated amortization and impairment
Balance on January 1, 2021	$	(19,319	)	$	(2,532	)	$	(45	)	$	(160	)	$	(22,056	)
Amortization expenses		(6,199	)		(341	)		—			(29	)		(6,569	)
Disposal		—			343			—			11			354
Impairment losses		—			—			(29	)		—			(29	)
Effect of foreign exchange differences		—			—			—			—			—
Others		—			—			—			—			—
Balance on December 31, 2021	$	(25,518	)	$	(2,530	)	$	(74	)	$	(178	)	$	(28,300	)
Balance on December 31, 2021, net	$	82,820		$	673		$	217		$	235		$	83,945
Cost
Balance on January 1, 2022	$	108,338		$	3,203		$	291		$	413		$	112,245
Additions-acquired separately		1,625			257			—			11			1,893
Disposal		—			(663	)		—			(2	)		(665	)
Effect of foreign exchange differences		—			—			—			—			—
Others		—			1			—			—			1
Balance on December 31, 2022	$	109,963		$	2,798		$	291		$	422		$	113,474
Accumulated amortization and impairment
Balance on January 1, 2022	$	(25,518	)	$	(2,530	)	$	(74	)	$	(178	)	$	(28,300	)
Amortization expenses		(6,295	)		(310	)		—			(38	)		(6,643	)
Disposal		—			664			—			1			665
Impairment losses		—			—			—			(9	)		(9	)
Effect of foreign exchange differences		—			—			—			—			—
Others		—			—			—			—			—
Balance on December 31, 2022	$	(31,813	)	$	(2,176	)	$	(74	)	$	(224	)	$	(34,287	)
Balance on December 31, 2022, net	$	78,150		$	622		$	217		$	198		$	79,187

For long-term business development, Chunghwa participated in the 5G mobile broadband license bidding hosted by the National Communications Commission (“NCC”) and paid the deposit for 5G spectrum bidding amounting to $1,000 million (included in other assets) in October 2019. Chunghwa paid $48,373 million, including the aforementioned deposit, in February 2020 for the aforementioned license to obtain 90MHz in the 3.5GHz spectrum and 600MHz in the 28GHz spectrum.

Chunghwa’s Board of Directors approved the acquisition of the 900MHz frequency band and equipment from Asia Pacific Telecom Co., Ltd. in November 2021. The aforementioned tax-excluded transaction amount was $1,800 million included in intangible assets- mobile broadband concession and other assets- spare parts. The transaction was approved by the related authority in May 2022 and completed in July 2022.

The concessions are granted and issued by the NCC. The concession fees are amortized using the straight-line method over the period from the date operations commence through the date the license expires or the useful life, whichever is shorter. The 4G concession fees will be fully amortized by December 2030 and December 2033, and 5G concession fees will be fully amortized by December 2040.

The computer software is amortized using the straight-line method over the estimated useful lives of 1 to 10 years. Other intangible assets are amortized using the straight-line method over the estimated useful lives of 1 to 20 years. Goodwill is not amortized.

SENAO evaluated the goodwill, license agreement and the right of trademark that arose in the acquisition of Youth and its subsidiaries at the end of each year. Due to the competition in the industrial environment, the gross profit margin decreased. SENAO determined the smallest identifiable group of assets that generates cash inflows as single cash generating units by business type and evaluated the recoverable amount of those cash generating units by their value in use. The management of SENAO estimated the cash flow projections based on the financial budgets for the following five years. Discount rate was 12.1% as of December 31, 2020 and 2021, and was used to calculate the recoverable amount of related cash generating units by discounting aforementioned cash flows.

SENAO concluded the recoverable amount of the goodwill was lower than the carrying value and recognized impairment loss of $9 million and $29 million for the years ended December 31, 2020 and 2021, respectively. In addition, SENAO concluded the recoverable amount of the license agreement and the right of trademark were lower than the carrying value and recognized impairment loss of $0.2 million and $9 million for the years ended December 31, 2021 and 2022, respectively. The aforementioned impairment losses were included in other income and expenses of consolidated statements of comprehensive income. The recoverable amount of license agreement and right of trademark was measured at the fair value less costs to sell. The fair value was calculated based on asset approach by reference to the net assets value of Youth.