c.The impact of the application of New IFRSs and the Regulations Governing the Preparation of Financial Reports by
Securities Issuers (the “Regulations”) in issue but not yet effective on the Corporation’s financial statements is as
follows:
The impact of the application of the above New IFRSs and the Regulations on the Corporation’s financial position
and operating results is as follows:
As of the date the financial statements were authorized for issue, the Corporation is continuingly assessing the
possible impact that the application of the above New IFRSs will have on the Corporation’s financial position and
operating result, and will disclose the relevant impact when the assessment is complete.
4.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
CPC is operated and managed by the Government of the Republic of China (ROC). CPC’s accounts are maintained
generally in accordance with the accounting laws and regulations governing state-owned enterprises. The
Corporation’s significant accounting policies conform to the Guidelines Governing the Preparation of Financial
Reports by Securities Issuers, Business Accounting Law, Guidelines Governing Business Accounting, and
accounting principles generally accepted in the ROC.
The Corporation’s annual financial statements are required to be examined by the Executive Yuan and the
Ministry of Audit of the Control Yuan. The examinations are primarily aimed at determining the extent to which
the Corporation meets its budget as approved by the Legislative Yuan. The Corporation’s financial statements
are finalized on the basis of the results of these examinations. The Ministry of Audit’s adjustments should be
reflected in the financial statements audited by independent certified public accountants. The opening balance
of the following year of the Corporation’s books of accounts is based on the balance after the adjustments made
by the Ministry of Audit. The examination of the Corporation’s financial statements as of and for the year ended
December 31, 2012 had already been completed.
The examinations of the Corporation’s financial statements as of and for the year ended December 31, 2013 by
these government agencies had not yet been completed as of the audit report date., The financial statements
were compiled in conformity with Guidelines Governing the Preparation of Financial Reports by Securities
Issuers, Business Accounting Law, Guidelines Governing Business Accounting and accounting principles generally
accepted in the ROC.
On May 14, 2009, the Financial Supervisory Commission (FSC) announced the “Framework for the Adoption of
IFRSs by the Companies in the ROC.” Under this framework, starting from 2013, companies listed on the Taiwan
Stock Exchange or traded on the Taiwan GreTai Securities Market or Emerging Stock Market should prepare
their financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by
Securities Issuers and the IFRS, IAS, IFRIC and SIC (the “IFRSs”) endorsed by the FSC. On the other hand, public
traded companies that are not listed on the Taiwan Stock Exchange or the Taiwan GreTai Securities Market, credit
cooperatives, and credit card companies should adopt IFRSs in 2015.
Under the original IFRS adoption timetable announced by the FSC, CPC should adopt IFRSs in 2015. However, the
Directorate-General of Budget, Accounting, and Statistics (DGBAS) soon became concerned that the differences
in the timing of the application of IFRSs and budgeting basis by the numerous state-owned companies could
result in inconsistencies in these companies’ presentation of financial position and financial performance in the
Consolidated Table of State-Owned Subordinate Unit Businesses. Thus in 2010, DGBAS announced the “IFRSs
Adoption Plan for State-Owned Entities,” stipulating that all state-owned entities should adopt IFRSs in 2013.
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Financial Statements
