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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; 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.
Assets and liabilities that are not classified as current are classified as non-current.
Foreign Currencies
In preparing the financial statements, transactions 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 from the currency of 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 in associates
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 Corporation uses the equity method to account for its investments in associates.
Under the equity method, investments in an associate are 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.
Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized
impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such properties are depreciated and
classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.
48 CPC 2016