XML 50 R21.htm IDEA: XBRL DOCUMENT v3.20.1
Lease Arrangements
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Lease Arrangements
16.
LEASE ARRANGEMENTS
 
a.
Right-of-use assets – 2019
 
 
 
December 31, 2019
 
 
NT$
 
US$ (Note 4)
     
Carrying amounts
        
         
Land $7,036,887  $235,269 
Buildings and improvements  2,121,797   70,939 
Machinery and equipment  588,443   19,674 
Other equipment  45,094   1,508 
         
  $9,792,221  $327,390 
 
  
For the Year Ended
December 31, 2019
 
 
NT$
 
US$ (Note 4)
     
Additions to right-of-use assets $824,268  $27,558 
         
Depreciation charge for right-of-use assets        
Land $
215,301
  $7,198 
Buildings and improvements  
307,708
   10,288 
Machinery and equipment  
507,443
   16,966 
Other equipment  
25,006
   836 
         
  $1,055,458  $35,288 
 
 
The amounts disclosed above with respect to the right-of-use assets d
id
 not include
 the
right-of-use assets that meet the definition of investment properties.
 
b.
Lease liabilities - 2019
 
 
 
December 31, 2019
 
 
NT$
 
US$ (Note 4)
     
Carrying amounts
        
         
Current $632,802  $21,157 
Non-current $5,176,123  $173,057 
 
The Group’s lease liabilities were mainly from land and buildings and improvements. The range of discount rates for lease liabilities was as follows:
 
 
 
December 31, 2019
 
 
 
Land (%)
 
0.54-4.90
Buildings and improvements (%)
 
0.30-8.62
c.
Material lease-in activities and terms
 
The Group leases land and buildings for the use of plants and offices with remaining lease terms of 1-69 years and 1-31 years, respectively. For the leasehold land located in the R.O.C., the Group has extension options
 
at
the
expiry of th
e lease p
eriods.
 
However, the government has the right to adjust the lease payments on the basis of changes in announced land value prices and also has the right to terminate the lease contract under certain circumstances. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the
 expiry
 of the lease
periods
. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.
 
d.
Subleases
 
In addition to the sublease transactions described in Note 17, the Group did not have other sublease transactions.
 
e.
Other lease information
 
1)
Lease arrangements under operating leases for the leasing out of investment properties and freehold property, plant and equipment are set out in Note 17.
 
2)
Other related lease information
 
  
For the Year Ended
December 31, 2019
 
 
NT$
 
US$ (Note 4)
     
Expenses relating to short-term leases $421,924  $14,106 
Expenses relating to low-value assets leases $4,473  $150 
Expenses relating to variable lease payments not included in the measurement of lease liabilities $53,403  $1,785 
Total cash outflow for leases $(1,511,277) $(50,527)
 
The Group lease
d
 certain machinery and equipment which qualify as short-term leases and certain other equipment which qualify as low-value asset leases. The Group elected to apply the recognition exemption and
,
thus, did not recognize right-of-use assets and lease liabilities for these leases.
 
2018
 
The future minimum lease payments of non-cancellable operating lease commitments
were
as follows:
 
  
December 31,
2018
 
 
 
NT$
 
     
Less than 1 year $509,994 
1 to 5 years  828,482 
More than 5 years  1,047,626 
     
  $2,386,102 
 
 
The minimum lease payments recognized in profit or loss for the year ended December 31, 2018 was NT$785,295 thousand.