The Corporation’s financial statements for the year ended December 31, 2013 is its first annual IFRS financial
statements. The date of transition to IFRSs was January 1, 2012. Refer to Note 36 for the impact of IFRS
conversion on the Corporation’s financial statements.
For readers’ convenience, the accompanying financial statements have been translated into English from the
original Chinese version prepared and used in the ROC. If inconsistencies arise between the English version and
the Chinese version or if differences arise in the interpretations between the two versions, the Chinese version of
the financial statements shall prevail.
Statement of Compliance
The financial statements have been prepared in accordance with the Regulations Governing the Preparation of
Financial Reports by Securities Issuers, related regulations and IFRSs as endorsed by the FSC.
Basis of Preparation
The financial statements have been prepared on the historical cost basis, except for financial instruments that are
measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange
for assets.
When preparing its financial statements, the Corporation uses equity method to account for its investment in
associates and controlled entities.
Classification of Current and Noncurrent Assets and Liabilities
Current assets include:
a.Assets held primarily for the purpose of trading;
b.Assets expected to be realized within twelve months after the reporting period; and
c.Cash and cash equivalents, unless the asset is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting period.
Current liabilities include:
a.Liabilities held primarily for the purpose of trading;
b.Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance or
to reschedule payments on a long-term basis is completed after the reporting period and before the financial
statements are authorized for issue; and
c.Liabilities of which the Corporation does not have an unconditional right to defer settlement for at least 12
months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its classification.
All other assets and liabilities that are not classified as current are classified as noncurrent.
Foreign Currencies
In preparing its financial statements, the Corporation recognizes transactions in currencies other than its functional
currency (foreign currencies) at the rates of exchange prevailing on the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the
rates prevailing on that date. Exchange differences on monetary items arising from settlement or translation are
recognized in profit or loss in the period in which they arise.
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