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Provisions
 12 Months Ended
Dec. 31, 2017
Provisions [Abstract]  
Provisions

26.

PROVISIONS

 

 

 

December 31

 

 

 

2016

 

 

2017

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Warranties

 

$

111

 

 

$

132

 

Trade-in right

 

 

31

 

 

 

87

 

Employee benefits

 

 

38

 

 

 

43

 

Others

 

 

5

 

 

 

5

 

 

 

$

185

 

 

$

267

 

 

 

 

 

 

 

 

 

 

Current

 

$

119

 

 

$

189

 

Noncurrent

 

 

66

 

 

 

78

 

 

 

$

185

 

 

$

267

 

 

 

 

Warranties

 

 

Trade-in rights

 

 

Employee Benefits

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Balance on January 1, 2015

 

$

212

 

 

$

—

 

 

$

55

 

 

$

5

 

 

$

272

 

Additional provisions recognized

 

 

100

 

 

 

—

 

 

 

12

 

 

 

—

 

 

 

112

 

Used / forfeited during the year

 

 

(99

)

 

 

—

 

 

 

(37

)

 

 

—

 

 

 

(136

)

Balance on December 31, 2015

 

$

213

 

 

$

—

 

 

$

30

 

 

$

5

 

 

$

248

 

Balance on January 1, 2016

 

$

213

 

 

$

—

 

 

$

30

 

 

$

5

 

 

$

248

 

Additional provisions recognized

 

 

81

 

 

 

31

 

 

 

9

 

 

 

—

 

 

 

121

 

Used / forfeited during the year

 

 

(183

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(184

)

Balance on December 31, 2016

 

$

111

 

 

$

31

 

 

$

38

 

 

$

5

 

 

$

185

 

Balance on January 1, 2017

 

$

111

 

 

$

31

 

 

$

38

 

 

$

5

 

 

$

185

 

Additional provisions recognized

 

 

79

 

 

 

69

 

 

 

7

 

 

 

—

 

 

 

155

 

Used / forfeited during the year

 

 

(58

)

 

 

(13

)

 

 

(2

)

 

 

—

 

 

 

(73

)

Balance on December 31, 2017

 

$

132

 

 

$

87

 

 

$

43

 

 

$

5

 

 

$

267

 

 

 

a.

The provision for warranties claims represents the present value of the management’s best estimate of the future outflow of economic benefits that will be required under the Company’s obligation for warranties in sales agreements.  The estimate has been made based on the historical warranty experience.

 

b.

The provision for employee benefits represents vested long-term service compensation accrued.

 

c.

The provision for trade-in right is based on the management’s judgments to estimate the trade-in right of products exercised by customers in the future. The provision is recognized as a reduction of revenue in the period in which the goods are sold.