Page 54 - 2025 CPC Corporation,Taiwan

52 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” • IFRS 19 “Subsidiaries without Public Accountability: Disclosures” • Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” • Annual Improvements to IFRS Accounting Standards • Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” (4) Summary of material 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”), promulgated by the Accounting Department of the Ministry of Economic Affairs, the Directorate-General of Budget, Accounting and Statistics of the Executive Yuan, and the Ministry of Audit of the Control Yuan, along with the International Financial Reporting Standards (“IFRSs”) and 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 Directorate-General of Budget, Accounting and Statistics of 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, 2023 had already been completed. As explained in Note 12(b), the account books as of December 31, 2023 have been reviewed and confirmed by the Directorate General of Budget, Accounting and Statistics, Executive Yuan and the Ministry of Audit (MOA), and the adjustments have been added. (a) Statement of compliance These financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C.. (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. Investment properties are measured at fair value. (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.