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Investment Properties (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure Of Investment Property [Abstract]  
Summary of Investment Properties

 

 

December 31

 

 

 

2017

 

 

2018

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Carrying amount

 

 

 

 

 

 

 

 

Investment properties

 

$

8,048

 

 

$

8,287

 

 

 

 

 

 

 

Investment

Properties

 

 

 

 

 

NT$

 

 

 

 

 

(In Millions)

 

Cost

 

 

 

 

 

 

Balance on January 1, 2016

 

 

 

$

9,058

 

Additions

 

 

 

 

—

 

Reclassification

 

 

 

 

137

 

Balance on December 31, 2016

 

 

 

$

9,195

 

Accumulated depreciation and impairment

 

 

 

 

 

 

Balance on January 1, 2016

 

 

 

$

(1,156

)

Depreciation expense

 

 

 

 

(19

)

Reclassification

 

 

 

 

(53

)

Reversal of impairment loss

 

 

 

 

148

 

Balance on December 31, 2016

 

 

 

$

(1,080

)

Cost

 

 

 

 

 

 

Balance on January 1, 2017

 

 

 

$

9,195

 

Reclassification

 

 

 

 

(60

)

Balance on December 31, 2017

 

 

 

$

9,135

 

Accumulated depreciation and impairment

 

 

 

 

 

 

Balance on January 1, 2017

 

 

 

$

(1,080

)

Depreciation expense

 

 

 

 

(21

)

Reclassification

 

 

 

 

3

 

Reversal of impairment loss

 

 

 

 

11

 

Balance on December 31, 2017

 

 

 

$

(1,087

)

Cost

 

 

 

 

 

 

Balance on January 1, 2018

 

 

 

$

9,135

 

Additions

 

 

 

$

6

 

Reclassification

 

 

 

 

251

 

Balance on December 31, 2018

 

 

 

$

9,392

 

Accumulated depreciation and impairment

 

 

 

 

 

 

Balance on January 1, 2018

 

 

 

$

(1,087

)

Depreciation expense

 

 

 

 

(21

)

Reclassification

 

 

 

 

(16

)

Reversal of impairment loss

 

 

 

 

19

 

Balance on December 31, 2018

 

 

 

$

(1,105

)
Estimated Service Lives of Investment Properties

 

Depreciation expense is computed using the straight-line method over the following estimated service lives:

 

Land improvements

 

8-30 years

Buildings

 

 

Main buildings

 

35-60 years

Other building facilities

 

4-10 years
Key Assumptions and Fair Values of Investment Properties

The fair values of the Company’s investment properties as of December 31, 2017 and 2018 were determined by Level 3 fair value measurements inputs based on the appraisal reports conducted by independent appraisers.  Those appraisal reports are based on the comparison approach, income approach or cost approach.  Key assumptions and the fair values were as follows:

 

 

 

December 31

 

 

 

2017

 

 

2018

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Fair value

 

$

17,728

 

 

$

18,515

 

Overall capital interest rate

 

1.46%-2.20%

 

 

1.02%-4.04%

 

Profit margin ratio

 

12%-20%

 

 

12%-20%

 

Discount rate

 

1.04%

 

 

—

 

Capitalization rate

 

0.47%-1.69%

 

 

0.79%-1.75%