Page 54 - 2022 CPC Corporation,Taiwan

Financial Statements Standards or Interpretations Amendments to IAS 8 “Definition of Accounting Estimates” Content of amendment The amendments introduce a new definition for accounting estimates: clarifying that they are monetary amounts in the financial statements that are subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy. Effective date per IASB January 1, 2023 The Company is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated 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” • Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction” (4) Summary of significant accounting policies: The Company is operated and managed by the Government of the Republic of China (ROC). 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, 2020 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, 2021 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.