Page 64 - 2025 CPC Corporation,Taiwan

62 Gains or losses from the disposal of investment properties (calculated as the difference between the net disposal price and the carrying amount of the project) are recognized in profit or loss. If the investment properties sold were previously classified as property, plant and equipment, any related “other equity – revaluation appreciation of property” is transferred to retained earnings. Rental income from investment properties is recognized as non-operating income on a straight-line basis during the lease period. Leasing incentives given to it are recognized as part of the rental income during the lease period. (s) Earnings per share Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares. The Company does not have potentially dilutive ordinary shares. (t) Operating segments An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Company). Operating results of the operating segment are regularly reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information. (5) Significantaccountingassumptionsandjudgments,andmajorsourcesofestimationuncertainty: The preparation of the financial statements in conformity with the Accounting Laws and Regulations Governing State-owned Enterprises, the Regulations, and with the IFRSs and IASs, interpretations as well as related guidance, endorsed by the FSC of the Republic of China, requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates. The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period. Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is as follows: Judgment regarding significant influence of investees The Company holds 35%-49% of the voting shares of several investee companies, but because the remaining equity of these investee companies are concentrated in very few shareholders, the Company cannot exercise more than half of the voting rights, nor can it obtain a majority of directors’ seats. Therefore, the Company has only significant influence on these investee companies. Among the uncertainties of the assumptions and estimates, the relevant information that has significant risks may cause critical adjustments in the following years is as follows: (a) Estimated impairment of trade receivables The Company has estimated the loss allowance of trade receivable that is based on the risk of a default occurring and the rate of expected credit loss. The Company has considered historical experience, current economic conditions and forward- looking information at the reporting date to determine the assumptions to be used in calculating the impairments and the selected inputs. The relevant assumptions and input values, please refer to note 6(c). (b) Fair value of investment properties The fair value of the Company's investment properties is determined using evaluation techniques, including the income method or land development analysis method. Changes in assumptions used in these models will affect the fair value of the reported investment property. For the assumptions used in the evaluation of investment properties, please refer to note 6 (j) for details.