Page 58 - 2023 CPC Corporation,Taiwan
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Financial Statements
expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects                could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.
                                                  or in which the Company neither transfers nor retains substantially all of the risks and rewards of           
The Company enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.
(ii) Financial liabilities
1) Financial liabilities
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and
The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are                             
liability extinguished and the consideration paid (including any non-cash assets transferred or
The Company enters into a variety of derivative financial instruments to manage its exposure to price changes and foreign exchange rate risks, including foreign exchange forward contracts and petroleum swap contracts.
Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are
(f) Inventories
construction in progress, merchandise in transit-crude oil, 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 Company 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. (g) Investment in associates
nor an interest in a joint venture.
The Company 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
associate. The Company also recognizes the changes in the Company’s share of equity of associates.

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