Leasing arrangements - leasee

12 Months Ended

Dec. 31, 2020

Presentation of leases for lessee [abstract]

14.	Leasing arrangements - lessee

The Group leases various assets, including land, buildings, machinery and equipment, and others. Lease agreements are typically made for periods of 2 to 30 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

The carrying amount of

right-of-use

assets and the depreciation expenses are as follows:


	December 31, 2019		December 31, 2020
	Carrying amount		Carrying amount
	NT$000		NT$000
Land		669,967		636,261
Buildings		15,043		19,044
Machinery and equipment		—		203,249
Others		2,058		515

		687,068		859,069


	Year ended December 31,
	2019		2020
	Depreciation expenses		Depreciation expenses
	NT$000		NT$000
Land		22,657		20,938
Buildings		7,113		7,819
Machinery and equipment		4,520		46,225
Others		1,809		1,544

		36,099		76,526

For the years ended December 31, 2019 and 2020, additions to

right-of-use

assets were NT$11,183 thousand and NT$261,798 thousand, respectively.

The information on profit or loss accounts relating to lease contracts is as follows:


	Year ended December 31,
	2019		2020
	NT$000		NT$000
Items affecting profit or loss
Interest expense on lease liabilities		14,349		13,442
Expense on short-term lease contracts		230,589		202,782

For the years ended December 31, 2019 and 2020, the Group’s total cash outflow for leases were NT$273,709 thousand and NT$274,727 thousand, respectively.