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.
Assets and liabilities that are not classified as current are classified as non-current.
Foreign Currencies
In preparing the financial statements, transitions in currencies other than the Corporation’s functional currency (foreign
currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing
at 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.
Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing
at the date when the fair value is determined. Exchange differences arising on the retranslation of non-monetary items are
included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items
in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange
differences are also recognized directly in other comprehensive income.
Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.
For the purposes of presenting financial statements, the assets and liabilities of the Corporation’s foreign operations (including
associates and joint ventures operating in other countries, or using currencies different with the Corporation) are translated
into New Taiwan dollars, using exchange rates prevailing at the end of each reporting period. Income and expense items are
translated at the average exchange rates for the period. Exchange differences arising from these translations are recognized in
other comprehensive income.
Inventories
Inventories include raw materials, finished goods, work in process, semifinished goods, merchandise, construction in progress,
and merchandise in transit - fuel oil. Inventories are stated at the lower of cost or net realizable value. Inventory write-downs
are made by item, except where it may be appropriate to group similar or related items. Net realizable value is the estimated
selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded
at weighted-average cost on the balance sheet date.
Investment Accounted for Using Equity Method
The Corporation accounted for its investments in associates by the equity method.
An associate is an entity over which the Corporation has significant influence and that is neither a subsidiary nor an interest in a
joint venture.
The results and assets and liabilities of associates are incorporated in these financial statements using the equity method.
Under the equity method, an investment in an associate is initially recognized at cost and adjusted thereafter to recognize the
Corporation’s share of the profit or loss and other comprehensive income of the associate. The Corporation also recognizes the
changes in the Corporation’s share of equity of associates.
If the cost of acquisition exceeds the Corporation’s share of the net fair value of the identifiable assets and liabilities of an
associate recognized at the date of acquisition, this excess is recognized as goodwill, which is included in the carrying amount
of the investment and is not amortized. If the Corporation’s share of the net fair value of the identifiable assets and liabilities
exceeds the cost of acquisition, after reassessment, this excess is recognized immediately in profit or loss.
The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing
its recoverable amount with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the
investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment
subsequently increases.
When the Corporation transacts with its associate, profits and losses resulting from the transactions with the associate are recognized
in the Corporation’ financial statements only to the extent of interests in the associate that are not related to the Corporation.
Property, Plant and Equipment
Property, plant and equipment are stated at cost, less subsequent accumulated depreciation and subsequent accumulated
impairment loss.
