XML 132 R45.htm IDEA: XBRL DOCUMENT
v3.20.1

Effects of initial application of IFRS 15 and information for the year ended December 31, 2017 in conformity with IAS 18 | 12 Months Ended
--- | ---
Dec. 31, 2019
Text block [abstract] |
Effects of initial application of IFRS 15 and information for the year ended December 31, 2017 in conformity with IAS 18 |
40. | Effects of initial application of IFRS 15 and information for the year ended December 31, 2017 in conformity with IAS 18
| a) | The significant accounting policies applied on revenue recognition for the year ended December 31, 2017 is set out below:
Revenue recognition Revenue is recognized to the extent that it is probable that the economic benefits arising in the course of business will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Group engaged in the research, development, manufacturing and sale of high-integration and high-precision integrated circuits and related assembly and testing services. The criteria that the Group uses to determine when to recognize revenue are: (a) the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; (b) the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) the amount of revenue can be measured reliably; (d) it is probable that the economic benefits associated with the transaction will flow to the Group ; (e) the stage of completion of the transaction at the end of the reporting period can be measured reliably, and (f) the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. The Group does not take ownership of: (1) bare semiconductor wafers received from customers that are assembled into finished semiconductors, and (2) assembled semiconductors received from the customers that it tests. The title and risk of loss remains with the customer for those bare semiconductors and/or assembled semiconductors. Accordingly, the customer-supplied semiconductor materials are not included in the consolidated financial statements. The Group does not provide warranties to customers except in cases of defects in the assembly services provided and deficiencies in testing services provided. An appropriate sales allowance is recognized in the period during which the sale is recognized, and is estimated based on historical experience.
| b) | The revenue recognized by using above accounting policies for the year ended December 31, 2017 is provided in Note 4.
| c) | The impact and description on consolidated statement of financial position and statement of comprehensive income if the Group continues adopting above accounting policies as of and for the year ended December 31, 2018 are as follows:
|  |  |  |  | December 31, 2018 |
Consolidated statement of financial position items |  | Description |  |  | Balance under IFRS 15 |  |  | Balance under previous accounting policies |  |  | Impact on accounting policy change |
|  |  |  |  | NT$000 |  |  | NT$000 |  |  | NT$000 |
Contract assets |  |  | (d)(f)(g) |  |  |  | 299,835 |  |  |  | — |  |  |  | 299,835 |
Inventories |  |  | (e) |  |  |  | 1,778,835 |  |  |  | 2,016,106 |  |  |  | (237,271 | )
Deferred tax assets |  |  | (h) |  |  |  | 226,716 |  |  |  | 226,635 |  |  |  | 81 |
Contract liabilities |  |  | (i) |  |  |  | 1,432 |  |  |  | — |  |  |  | 1,432 |
Receipts in advance |  |  | (i) |  |  |  | 1,013 |  |  |  | 2,445 |  |  |  | (1,432 | )
Current provisions |  |  | (j) |  |  |  | 29,352 |  |  |  | 61,979 |  |  |  | (32,627 | )
Current refund liabilities |  |  | (j) |  |  |  | 32,627 |  |  |  | — |  |  |  | 32,627 |
Retained earnings |  |  |  |  |  |  | 3,602,663 |  |  |  | 3,540,018 |  |  |  | 62,645 |
|  |  |  |  | 2018 |
Consolidated statement of comprehensive income items |  | Description |  |  | Balance under IFRS 15 |  |  | Balance under previous accounting policies |  |  | Impact on accounting policy change |
|  |  |  |  | NT$000 |  |  | NT$000 |  |  | NT$000 |
Revenue |  |  | (a)(d) |  |  |  | 18,480,027 |  |  |  | 18,434,763 |  |  |  | 45,264 |
Cost of revenue |  |  | (a)(e) |  |  |  | (15,050,032 | ) |  |  | (15,021,266 | ) |  |  | (28,766 | )
Operating expenses |  |  | (f) |  |  |  | (1,477,788 | ) |  |  | (1,477,653 | ) |  |  | (135 | )
Other non-operating income (expenses), net |  |  | (g) |  |  |  | 173,070 |  |  |  | 173,476 |  |  |  | (406 | )
Income tax expense |  |  | (c)(h) |  |  |  | (456,618 | ) |  |  | (465,392 | ) |  |  | 8,774 |
Profit for the year |  |  |  |  |  |  | 1,325,824 |  |  |  | 1,301,093 |  |  |  | 24,731 |
Earnings per share (in dollars) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  |  |  |  | NT$ | 1.65 |  |  | NT$ | 1.62 |  |  | NT$ | 0.03 |
Diluted |  |  |  |  |  | NT$ | 1.63 |  |  | NT$ | 1.60 |  |  | NT$ | 0.03 |
Explanation on the adjustments: Impact on January 1, 2018
| (a) | Revenue recognition of customized products
The Group provides high-integration and high-precision integrated circuits and related assembly and testing services based on the specifications as required by the customers. The revenue is recognized when the significant risks and rewards are transferred to customers under previous accounting policies, and the timing of recognition usually occurred upon service completion. Under IFRS 15, considering that the Group provides assembly and testing service to create or enhance a highly customized product and the customer controls the asset as it is created or enhanced, the revenue will be recognized based on the progress towards completion. As a result, retained earnings increased by NT$46,607 thousand, inventories decreased by NT$208,505 thousand and contract assets increased by NT$255,112 thousand.
| (b) | Presentation of refund liabilities
By adopting IFRS 15, the Group’s provision for sales allowance amounted to NT$70,156 thousand is presented as current refund liabilities from January 1, 2018, which was previously presented as current provisions.
| (c) | Recognition of deferred tax
When initially adopting IFRS 15, the Group recognized adjustments in the statement of financial position which resulted to temporary differences. Accordingly, as of January 1, 2018, deferred tax assets decreased by NT$626 thousand, deferred tax liabilities increased by NT$8,067 thousand and retained earnings decreased by NT$8,693 thousand. Impact on December 31, 2018
| (d) | Contract assets and revenue recognition
Under IFRS 15, the Group provides assembly and testing service to create or enhance a highly customized product and the customer controls the asset as it is created or enhanced, the revenue will be recognized based on the progress towards completion. As a result, contract assets and revenue increased by NT$300,376 thousand as of December 31, 2018.
| (e) | Transfer inventory to cost of revenue
Under IFRS 15, when revenue is recognized based on the progress towards completion, work in process and finished goods in ending inventories should be transferred to cost of revenue at the end of the reporting period. As a result, inventories decreased and cost of revenue increased by NT$237,271 thousand as of December 31, 2018.
| (f) | Expected credit loss recognition
Under IFRS 15, when contract assets and revenue are recognized based on the progress towards completion, loss allowance is recognized based on the expected credit loss model. As a result, expected credit loss increased and contract assets decreased by NT$135 thousand for the year ended December 31, 2018.
| (g) | Foreign exchange
Under IFRS 15, when contract assets and revenue are recognized based on the progress towards completion, foreign exchange loss is also recognized using the exchange rates prevailing at the statement of financial position date. As a result, foreign exchange loss increased and contract assets decreased by NT$406 thousand for the year ended December 31, 2018.
| (h) | Recognition of deferred tax
In summary, foreign exchange loss recognized would result to a temporary difference. Accordingly, deferred tax assets increased and income tax expense decreased by NT$81 thousand for the year ended December 31, 2018.
| (i) | Presentation of contract liabilities
By adopting IFRS 15, advance payments amounted to NT$1,432 thousand in certain assembly and testing service contracts were presented as contract liabilities as of December 31, 2018, which were previously presented as receipts in advance.
| (j) | Presentation of refund liabilities
By adopting IFRS 15, the Group’s provision for sales allowance amounted to NT$32,627 thousand was presented as current refund liabilities as of December 31, 2018, which was previously presented as current provisions.

X
- Definition Disclosure of effects arising from initial application of IFRS 15. + References No definition available. + Details
Name: | imos_DisclosureOfEffectsArisingFromInitialApplicationOfIFRS15Explanatory
Namespace Prefix: | imos_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text block [abstract] + References No definition available. + Details
Name: | imos_TextBlockAbstract
Namespace Prefix: | imos_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration