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Provisions (Tables)
 12 Months Ended
Dec. 31, 2020
Provisions [Abstract]  
Summary of Provisions

 

 

 

December 31

 

 

 

2019

 

 

2020

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Warranties

 

$

173

 

 

$

182

 

Onerous contracts

 

 

67

 

 

 

171

 

Employee benefits

 

 

59

 

 

 

57

 

Others

 

 

5

 

 

 

5

 

 

 

$

304

 

 

$

415

 

 

 

 

 

 

 

 

 

 

Current

 

$

207

 

 

$

314

 

Noncurrent

 

 

97

 

 

 

101

 

 

 

$

304

 

 

$

415

 
Movements in Provisions

 

 

 

Warranties

 

 

Onerous Contracts

 

 

Employee Benefits

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Balance on January 1, 2018

 

$

132

 

 

$

—

 

 

$

43

 

 

$

5

 

 

$

180

 

Additional provisions recognized

 

 

164

 

 

 

19

 

 

 

9

 

 

 

—

 

 

 

192

 

Used / forfeited during the year

 

 

(164

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(165

)

Balance on December 31, 2018

 

$

132

 

 

$

19

 

 

$

51

 

 

$

5

 

 

$

207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on January 1, 2019

 

$

132

 

 

$

19

 

 

$

51

 

 

$

5

 

 

$

207

 

Additional provisions recognized

 

 

127

 

 

 

48

 

 

 

9

 

 

 

—

 

 

 

184

 

Used / forfeited during the year

 

 

(86

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(87

)

Balance on December 31, 2019

 

$

173

 

 

$

67

 

 

$

59

 

 

$

5

 

 

$

304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on January 1, 2020

 

$

173

 

 

$

67

 

 

$

59

 

 

$

5

 

 

$

304

 

Additional/(reversal of) provisions recognized

 

 

131

 

 

 

92

 

 

 

(2

)

 

 

—

 

 

 

221

 

Used / forfeited during the year

 

 

(122

)

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(125

)

Acquired by business combinations (Note 14)

 

 

—

 

 

 

15

 

 

 

—

 

 

 

—

 

 

 

15

 

Balance on December 31, 2020

 

$

182

 

 

$

171

 

 

$

57

 

 

$

5

 

 

$

415

 

 

a.

The provision for warranty 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 onerous contracts represents the present obligation resulting from the measurement for the unavoidable costs of meeting the Company’s contractual obligations exceed the economic benefits expected to be received from the contracts.