Page 55 - 2021 CPC Corporation,Taiwan

The Company is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its financial position and financial performance. The results thereof will be disclosed when the Company completes its evaluation.
The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements:
• Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
• IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
(4) Summary of significant accounting policies:
The Company is operated and managed by the Government of the Republic of China (ROC). The Company’s accounts are maintained in accordance with the accounting laws and regulations governing state-owned enterprises. The Company’s significant accounting policies conform to the accounting laws and regulations governing state-owned enterprises, the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”) and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China.
The Company’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 Company meets its budget as approved by the Legislative Yuan. The Company’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 Company’s books of accounts is based on the balance after the adjustments made by the Ministry of Audit. The examination of the Company’s financial statements as of and for the year ended December 31, 2019 had already been completed, as explained in Note 12(b). The examinations of the Company’s financial statements as of and for the year ended December 31, 2020 by these government agencies were not yet completed as of the auditor’s report date.
(a) Statement of compliance
The financial statements have been prepared in accordance with the accounting laws and regulations governing state-owned enterprises, the Regulations and the IFRSs as endorsed and issued into effect by the FSC.
(b) Basis of preparation
(i) Basis of measurement
Except for the following significant accounts, the financial statements have been prepared on a historical cost basis:
Financial instruments measured at fair value through profit or loss are measured at fair value; Fair value through other comprehensive income are measured at fair value;
Hedging derivative financial instruments are measured at fair value;
The defined benefit liability (asset) is recognized as the fair value of the plan assets less the present value of the defined benefit obligation.
(ii) Functional and presentation currency
The functional currency is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan dollars, which is the Company’s functional currency. All financial information presented in New Taiwan dollars has been rounded to the nearest thousand.
(c) Foreign currencies
(i) Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Nonmonetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.
Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:
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Financial Statements