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Property, Plant and Equipment | 12 Months Ended
--- | ---
Dec. 31, 2020
Disclosure Of Property Plant And Equipment [Abstract] |
Property, Plant and Equipment |
16. | PROPERTY, PLANT AND EQUIPMENT
|  | December 31 |
|  | 2018 |
|  | NT$ |
|  | (In Millions) |
Carrying amount |  |  |  |
Land |  | $ | 103,972 |
Land improvements |  |  | 263 |
Buildings |  |  | 44,784 |
Computer equipment |  |  | 2,115 |
Telecommunications equipment |  |  | 116,322 |
Transportation equipment |  |  | 231 |
Miscellaneous equipment |  |  | 2,582 |
Construction in progress and equipment to be accepted |  |  | 18,645 |
|  | $ | 288,914 |
|  | Land |  |  | Land Improvements |  |  | Buildings |  |  | Computer Equipment |  |  | Telecommuni- cations Equipment |  |  | Transportation Equipment |  |  | Miscellaneous Equipment |  |  | Construction in Progress and Equipment to be Accepted |  |  | Total |
|  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |
|  | (In Millions) |
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2018 |  | $ | 104,079 |  |  | $ | 1,595 |  |  | $ | 72,694 |  |  | $ | 14,162 |  |  | $ | 722,054 |  |  | $ | 3,834 |  |  | $ | 9,515 |  |  | $ | 18,527 |  |  | $ | 946,460 |
Additions |  |  | — |  |  |  | — |  |  |  | 21 |  |  |  | 52 |  |  |  | 159 |  |  |  | — |  |  |  | 334 |  |  |  | 27,413 |  |  |  | 27,979 |
Disposal |  |  | (71 | ) |  |  | — |  |  |  | — |  |  |  | (643 | ) |  |  | (31,984 | ) |  |  | (29 | ) |  |  | (623 | ) |  |  | — |  |  |  | (33,350 | )
Effect of foreign exchange differences |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 60 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 60 |
Others |  |  | (36 | ) |  |  | 6 |  |  |  | 196 |  |  |  | 687 |  |  |  | 25,459 |  |  |  | 77 |  |  |  | 648 |  |  |  | (27,295 | ) |  |  | (258 | )
Balance on December 31, 2018 |  | $ | 103,972 |  |  | $ | 1,601 |  |  | $ | 72,911 |  |  | $ | 14,258 |  |  | $ | 715,748 |  |  | $ | 3,882 |  |  | $ | 9,874 |  |  | $ | 18,645 |  |  | $ | 940,891 |
Accumulated depreciation and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2018 |  | $ | — |  |  | $ | (1,293 | ) |  | $ | (26,799 | ) |  | $ | (11,788 | ) |  | $ | (607,154 | ) |  | $ | (3,513 | ) |  | $ | (7,205 | ) |  | $ | — |  |  | $ | (657,752 | )
Depreciation expenses |  |  | — |  |  |  | (45 | ) |  |  | (1,356 | ) |  |  | (983 | ) |  |  | (24,236 | ) |  |  | (162 | ) |  |  | (679 | ) |  |  | — |  |  |  | (27,461 | )
Disposal |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 632 |  |  |  | 31,952 |  |  |  | 29 |  |  |  | 615 |  |  |  | — |  |  |  | 33,228 |
Effect of foreign exchange differences |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (20 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (20 | )
Others |  |  | — |  |  |  | — |  |  |  | 28 |  |  |  | (4 | ) |  |  | 32 |  |  |  | (5 | ) |  |  | (23 | ) |  |  | — |  |  |  | 28 |
Balance on December 31, 2018 |  | $ | — |  |  | $ | (1,338 | ) |  | $ | (28,127 | ) |  | $ | (12,143 | ) |  | $ | (599,426 | ) |  | $ | (3,651 | ) |  | $ | (7,292 | ) |  | $ | — |  |  | $ | (651,977 | )
There was no indication that property, plant and equipment was impaired so the Company did not recognize any impairment loss for the year ended December 31, 2018. Depreciation expense in 2018 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 |  | 3-20 years
Computer equipment |  | 2-8 years
Telecommunications equipment |  |
Telecommunication circuits |  | 2-30 years
Telecommunication machinery and antennas equipment |  | 2-30 years
Transportation equipment |  | 3-10 years
Miscellaneous equipment |  |
Leasehold improvements |  | 1-6 years
Mechanical and air conditioner equipment |  | 3-16 years
Others |  | 1-10 years
|  | December 31 |
|  | 2019 |  |  | 2020 |
|  | NT$ |  |  | NT$ |
|  | (In Millions) |
Assets used by the Company |  | $ | 276,370 |  |  | $ | 273,823 |
Assets subject to operating leases |  |  | 7,324 |  |  |  | 7,593 |
|  | $ | 283,694 |  |  | $ | 281,416 |
a. | Assets used by the Company
|  | Land |  |  | Land Improvements |  |  | Buildings |  |  | Computer Equipment |  |  | Telecommuni- cations Equipment |  |  | Transportation Equipment |  |  | Miscellaneous Equipment |  |  | Construction in Progress and Equipment to be Accepted |  |  | Total |
|  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |
|  | (In Millions) |
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2019 |  | $ | 103,972 |  |  | $ | 1,601 |  |  | $ | 72,911 |  |  | $ | 14,258 |  |  | $ | 715,748 |  |  | $ | 3,882 |  |  | $ | 9,874 |  |  | $ | 18,645 |  |  | $ | 940,891 |
Effect of retrospective application of IFRS 16 |  |  | (3,617 | ) |  |  | (1 | ) |  |  | (3,583 | ) |  |  | — |  |  |  | (3,885 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (11,086 | )
Balance on January 1, 2019 as adjusted |  |  | 100,355 |  |  |  | 1,600 |  |  |  | 69,328 |  |  |  | 14,258 |  |  |  | 711,863 |  |  |  | 3,882 |  |  |  | 9,874 |  |  |  | 18,645 |  |  |  | 929,805 |
Additions |  |  | — |  |  |  | — |  |  |  | 1,221 |  |  |  | 57 |  |  |  | 120 |  |  |  | 1 |  |  |  | 149 |  |  |  | 21,612 |  |  |  | 23,160 |
Disposal |  |  | (38 | ) |  |  | (7 | ) |  |  | (3 | ) |  |  | (1,916 | ) |  |  | (30,417 | ) |  |  | (51 | ) |  |  | (405 | ) |  |  | — |  |  |  | (32,837 | )
Effect of foreign exchange differences |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (37 | ) |  |  | — |  |  |  | (1 | ) |  |  | (6 | ) |  |  | (44 | )
Others |  |  | (1,214 | ) |  |  | 25 |  |  |  | 455 |  |  |  | 606 |  |  |  | 24,503 |  |  |  | 80 |  |  |  | 473 |  |  |  | (26,499 | ) |  |  | (1,571 | )
Balance on December 31, 2019 |  | $ | 99,103 |  |  | $ | 1,618 |  |  | $ | 71,001 |  |  | $ | 13,005 |  |  | $ | 706,032 |  |  | $ | 3,912 |  |  | $ | 10,090 |  |  | $ | 13,752 |  |  | $ | 918,513 |
Accumulated depreciation and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2019 |  | $ | — |  |  | $ | (1,338 | ) |  | $ | (28,127 | ) |  | $ | (12,143 | ) |  | $ | (599,426 | ) |  | $ | (3,651 | ) |  | $ | (7,292 | ) |  | $ | — |  |  | $ | (651,977 | )
Effect of retrospective application of IFRS 16 |  |  | — |  |  |  | 1 |  |  |  | 1,265 |  |  |  | — |  |  |  | 2,576 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,842 |
Balance on January 1, 2019 as adjusted |  |  | — |  |  |  | (1,337 | ) |  |  | (26,862 | ) |  |  | (12,143 | ) |  |  | (596,850 | ) |  |  | (3,651 | ) |  |  | (7,292 | ) |  |  | — |  |  |  | (648,135 | )
Depreciation expenses |  |  | — |  |  |  | (43 | ) |  |  | (1,301 | ) |  |  | (827 | ) |  |  | (23,906 | ) |  |  | (91 | ) |  |  | (688 | ) |  |  | — |  |  |  | (26,856 | )
Disposal |  |  | — |  |  |  | 6 |  |  |  | 3 |  |  |  | 1,909 |  |  |  | 30,380 |  |  |  | 51 |  |  |  | 402 |  |  |  | — |  |  |  | 32,751 |
Impairment losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (64 | ) |  |  | (29 | ) |  |  | (93 | )
Effect of foreign exchange differences |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 16 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 17 |
Others |  |  | — |  |  |  | (1 | ) |  |  | 183 |  |  |  | (7 | ) |  |  | 22 |  |  |  | (3 | ) |  |  | (21 | ) |  |  | — |  |  |  | 173 |
Balance on December 31, 2019 |  | $ | — |  |  | $ | (1,375 | ) |  | $ | (27,977 | ) |  | $ | (11,068 | ) |  | $ | (590,338 | ) |  | $ | (3,694 | ) |  | $ | (7,662 | ) |  | $ | (29 | ) |  | $ | (642,143 | )
Balance on December 31, 2019, net |  | $ | 99,103 |  |  | $ | 243 |  |  | $ | 43,024 |  |  | $ | 1,937 |  |  | $ | 115,694 |  |  | $ | 218 |  |  | $ | 2,428 |  |  | $ | 13,723 |  |  | $ | 276,370 |
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2020 |  | $ | 99,103 |  |  | $ | 1,618 |  |  | $ | 71,001 |  |  | $ | 13,005 |  |  | $ | 706,032 |  |  | $ | 3,912 |  |  | $ | 10,090 |  |  | $ | 13,752 |  |  | $ | 918,513 |
Additions |  |  | 67 |  |  | - |  |  |  | 18 |  |  |  | 55 |  |  |  | 118 |  |  |  | 1 |  |  |  | 150 |  |  |  | 24,786 |  |  |  | 25,195 |
Disposal |  |  | (270 | ) |  |  | (19 | ) |  |  | (49 | ) |  |  | (1,245 | ) |  |  | (20,619 | ) |  |  | (45 | ) |  |  | (520 | ) |  |  | (29 | ) |  |  | (22,796 | )
Effect of foreign exchange differences |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (91 | ) |  |  | — |  |  |  | — |  |  |  | (7 | ) |  |  | (98 | )
Acquired by business combinations (Note 14) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 70 |  |  |  | — |  |  |  | — |  |  |  | 72 |  |  |  | — |  |  |  | 142 |
Others |  |  | 3,091 |  |  |  | 31 |  |  |  | (81 | ) |  |  | 521 |  |  |  | 25,336 |  |  |  | 26 |  |  |  | 508 |  |  |  | (29,973 | ) |  |  | (541 | )
Balance on December 31, 2020 |  | $ | 101,991 |  |  | $ | 1,630 |  |  | $ | 70,889 |  |  | $ | 12,406 |  |  | $ | 710,776 |  |  | $ | 3,894 |  |  | $ | 10,300 |  |  | $ | 8,529 |  |  | $ | 920,415 |
Accumulated depreciation and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2020 |  | $ | — |  |  | $ | (1,375 | ) |  | $ | (27,977 | ) |  | $ | (11,068 | ) |  | $ | (590,338 | ) |  | $ | (3,694 | ) |  | $ | (7,662 | ) |  | $ | (29 | ) |  | $ | (642,143 | )
Depreciation expenses |  |  | — |  |  |  | (43 | ) |  |  | (1,366 | ) |  |  | (770 | ) |  |  | (23,994 | ) |  |  | (68 | ) |  |  | (666 | ) |  |  | — |  |  |  | (26,907 | )
Disposal |  |  | — |  |  |  | 19 |  |  |  | 49 |  |  |  | 1,243 |  |  |  | 20,600 |  |  |  | 45 |  |  |  | 504 |  |  |  | 29 |  |  |  | 22,489 |
Effect of foreign exchange differences |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 41 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 41 |
Acquired by business combinations (Note 14) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (40 | ) |  |  | — |  |  |  | — |  |  |  | (54 | ) |  |  | — |  |  |  | (94 | )
Others |  |  | — |  |  |  | — |  |  |  | 47 |  |  |  | (4 | ) |  |  | 28 |  |  |  | (1 | ) |  |  | (48 | ) |  |  | — |  |  |  | 22 |
Balance on December 31, 2020 |  | $ | — |  |  | $ | (1,399 | ) |  | $ | (29,247 | ) |  | $ | (10,639 | ) |  | $ | (593,663 | ) |  | $ | (3,718 | ) |  | $ | (7,926 | ) |  | $ | — |  |  | $ | (646,592 | )
Balance on December 31, 2020, net |  | $ | 101,991 |  |  | $ | 231 |  |  | $ | 41,642 |  |  | $ | 1,767 |  |  | $ | 117,113 |  |  | $ | 176 |  |  | $ | 2,374 |  |  | $ | 8,529 |  |  | $ | 273,823 |
CHPT evaluated that certain miscellaneous equipment, construction in progress and equipment to be accepted used for manufacturing specific PCB will not be used in the future and there was no active market for sale; therefore, CHPT determined that the recoverable amount of such assets was nil and recognized impairment losses of $89 million for the year ended December 31, 2019. CHSI evaluated that certain miscellaneous equipment will not be used in the future and there was no active market for sale; therefore, CHSI determined that the recoverable amount of such assets was nil and recognized impairment losses of $4 million for the year ended December 31, 2019. The aforementioned impairment losses were included in other income and expenses of statements of comprehensive income. There was no indication that property, plant and equipment was impaired; therefore, the Company did not recognize any impairment loss for the year ended December 31, 2020. Chunghwa signed a joint development agreement with the MOTC previously which stated that the MOTC would provide the national land and Chunghwa would be in charge of the planning and construction for the MOTC’s office building, Chunghwa’s Renai office building, etc. According to the agreement, the MOTC and Chunghwa would each own a certain percentage of the buildings, and Chunghwa is to pay or get the reimbursement for the difference between the assessed value of the land and the construction cost paid by Chunghwa on behalf of the MOTC. The difference amounting to $1,057 million due to the MOTC was reported to Chunghwa’s Board of Directors in May 2020 and Chunghwa will complete the property registration of the respective asset once the payment is made. The Company participated in the government-led urban renewal project in Xingzheng Section, Xindian District, New Taipei City. The Company provided land as a building lot while Kindom Development Corp., chosen through public selection by the New Taipei City Government, acted as the urban renewal developer. The property registration was completed in 2020. With respect to the Company’s trade-in share of land and buildings, only the trade-in buildings had commercial substance. Therefore, the gain on the asset exchange transaction of $1,268 million (included in” gains and losses on disposal of property, plant and equipment”) was recognized at the difference between the carrying amount of the trade-out land of $37 million and the fair value of trade-in buildings of $1,305 million (included in “investment properties”). The aforementioned gain on disposal was included under “other income and expenses” in the statements of comprehensive income. Depreciation expense for assets used by the Company in 2019 and 2020 is computed using the straight-line method over the following estimated service lives:
Land improvements |  | 10-30 years
Buildings |  |
Main buildings |  | 20-60 years
Other building facilities |  | 3-15 years
Computer equipment |  | 2-8 years
Telecommunications equipment |  |
Telecommunication circuits |  | 2-30 years
Telecommunication machinery and antennas equipment |  | 2-30 years
Transportation equipment |  | 3-10 years
Miscellaneous equipment |  |
Leasehold improvements |  | 1-9 years
Mechanical and air conditioner equipment |  | 3-16 years
Others |  | 1-15 years
b. | Assets subject to operating leases
|  | Land |  |  | Land Improvements |  |  | Buildings |  |  | Total |
|  | NT$ |  |  | NT$ |  |  | NT$ |  |  | NT$ |
|  | (In Millions) |
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2019 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Effect of retrospective application of IFRS 16 |  |  | 3,617 |  |  |  | 1 |  |  |  | 3,583 |  |  |  | 7,201 |
Balance on January 1, 2019 as adjusted |  |  | 3,617 |  |  |  | 1 |  |  |  | 3,583 |  |  |  | 7,201 |
Additions |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | 4 |
Transferred from (to) assets used by the Company |  |  | 1,362 |  |  |  | (1 | ) |  |  | 255 |  |  |  | 1,616 |
Balance on December 31, 2019 |  | $ | 4,979 |  |  | $ | — |  |  | $ | 3,842 |  |  | $ | 8,821 |
Accumulated depreciation and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2019 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Effect of retrospective application of IFRS 16 |  |  | — |  |  |  | (1 | ) |  |  | (1,265 | ) |  |  | (1,266 | )
Balance on January 1, 2019 as adjusted |  |  | — |  |  |  | (1 | ) |  |  | (1,265 | ) |  |  | (1,266 | )
Depreciation expenses |  |  | — |  |  |  | — |  |  |  | (74 | ) |  |  | (74 | )
Transferred to (from) assets used by the company |  |  | — |  |  |  | 1 |  |  |  | (158 | ) |  |  | (157 | )
Balance on December 31, 2019 |  | $ | — |  |  | $ | — |  |  | $ | (1,497 | ) |  | $ | (1,497 | )
Balance on January 1, 2019 as adjusted, net |  | $ | 3,617 |  |  | $ | — |  |  | $ | 2,318 |  |  | $ | 5,935 |
Balance on December 31, 2019, net |  | $ | 4,979 |  |  | $ | — |  |  | $ | 2,345 |  |  | $ | 7,324 |
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2020 |  | $ | 4,979 |  |  | $ | — |  |  | $ | 3,842 |  |  | $ | 8,821 |
Others |  |  | (6 | ) |  |  | — |  |  |  | 394 |  |  |  | 388 |
Balance on December 31, 2020 |  | $ | 4,973 |  |  | $ | — |  |  | $ | 4,236 |  |  | $ | 9,209 |
Accumulated depreciation and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance on January 1, 2020 |  | $ | — |  |  | $ | — |  |  | $ | (1,497 | ) |  | $ | (1,497 | )
Depreciation expenses |  |  | — |  |  |  | — |  |  |  | (82 | ) |  |  | (82 | )
Others |  |  | — |  |  |  | — |  |  |  | (37 | ) |  |  | (37 | )
Balance on December 31, 2020 |  | $ | — |  |  | $ | — |  |  | $ | (1,616 | ) |  | $ | (1,616 | )
Balance on December 31, 2020, net |  | $ | 4,973 |  |  | $ | — |  |  | $ | 2,620 |  |  | $ | 7,593 |
The Company leases out land and buildings with lease terms between 1 to 20 years. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods. The future aggregate lease collection under operating lease for the freehold plant, property and equipment was as follows:
|  | December 31 |
|  | 2019 |  |  | 2020 |
|  | NT$ |  |  | NT$ |
|  | (In Millions) |
Year 1 |  | $ | 302 |  |  | $ | 347 |
Year 2 |  |  | 273 |  |  |  | 288 |
Year 3 |  |  | 234 |  |  |  | 231 |
Year 4 |  |  | 191 |  |  |  | 164 |
Year 5 |  |  | 130 |  |  |  | 125 |
Onwards |  |  | 1,224 |  |  |  | 1,180 |
|  | $ | 2,354 |  |  | $ | 2,335 |
The above items of property, plant and equipment subject to operating leases are depreciated on a straight-line basis over their estimated useful lives as follows:
Land improvements |  | 10-30 years
Buildings |  |
Main buildings |  | 35-60 years
Other building facilities |  | 3-15 years

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