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Consolidation of Subsidiary
 12 Months Ended
Dec. 31, 2017
Text block1 [abstract]  
Consolidation of Subsidiary
33. CONSOLIDATION OF SUBSIDIARY

Due to a Chinese consortium’s acquisition of OVT, major shareholders of VisEra Holding and OVT Taiwan, the Company acquired OVT’s 49.1% ownership in VisEra Holding and 100% ownership in OVT Taiwan on November 20, 2015. The related information is as follows:

 

  a. Subsidiaries acquired

 

    Principal Activity   Date of Acquisition    Proportion of
Voting Equity
Interests
Acquired (%)		     

Consideration
Transferred
NT$

(In Millions)

  

VisEra Holding

  

Investing in companies involved in the design, manufacturing and other related businesses in the semiconductor industry

   November 20, 2015      49.1      $ 3,536.1  
         

 

 

  
         
         
         

OVT Taiwan

   Investment activities   November 20, 2015      100      $ 394.7  
         

 

 

  

 

  b. Considerations transferred

 

                                                           
     VisEra Holding        OVT Taiwan    
     NT$      NT$  
     (In Millions)      (In Millions)  

Cash

    $ 3,536.1      $ 394.7  
  

 

 

     

 

 

  

 

  c. Assets acquired and liabilities assumed at the date of acquisition

 

                                                           
     VisEra Holding        OVT Taiwan    
     NT$      NT$  
     (In Millions)      (In Millions)  

Current assets

      

Cash and cash equivalents

    $ 3,858.5      $ 20.7  

Accounts receivable

      512.0        —  

Inventories

      59.1        —  

Other financial assets

      706.5        373.8  

Other current assets

      26.4        0.2  

Noncurrent assets

      

Investments accounted for using equity method

      721.6        —  

Property, plant and equipment

      2,651.2        —  

Intangible assets

      12.1        —  

Deferred income tax assets

      30.0        —  

Refundable deposits

      15.6        —  
  

 

 

     

 

 

  
     8,593.0        394.7  
  

 

 

     

 

 

  
                                                           
     VisEra Holding        OVT Taiwan    
     NT$      NT$  
     (In Millions)      (In Millions)  

Current liabilities

      

Financial liabilities at fair value through profit or loss

    $ 1.0      $ —  

Accounts payable

      87.5        —  

Salary and bonus payable

      183.1        —  

Accrued profit sharing bonus to employees and compensation to directors and supervisors

      45.8        —  

Payables to contractors and equipment suppliers

      132.3        —  

Income tax payable

      47.9        —  

Provisions

      126.0        —  

Accrued expenses and other current liabilities

      102.8        —  

Noncurrent liabilities

      

Guarantee deposits

      1.3        —  
  

 

 

     

 

 

  
          727.7         —  
  

 

 

     

 

 

  

Net assets

    $ 7,865.3      $     394.7   
  

 

 

     

 

 

  
  d. Goodwill arising on acquisition

 

                                                           
     VisEra Holding         
     NT$         
     (In Millions)         

Consideration transferred

    $ 3,536.1     

Fair value of investments previously owned

      3,458.2     

Less: Fair value of identifiable net assets acquired

      (7,865.3 )    

Non-controlling interests

           923.7      
  

 

 

     

Goodwill arising on acquisition

    $ 52.7     
  

 

 

     

 

  e. Net cash outflow on acquisition of subsidiaries

 

                                                           
     VisEra Holding        OVT Taiwan    
     NT$      NT$  
     (In Millions)      (In Millions)  

Consideration paid in cash

    $ 3,536.1      $ 394.7  

Less: Cash and cash equivalent balances acquired

      (3,858.5 )       (20.7 ) 
  

 

 

     

 

 

  
   $ (322.4 )     $     374.0   
  

 

 

     

 

 

  

 

  f. Impact of acquisitions on the results of the Company

The results of VisEra Holding since the acquisition date included in the consolidated statements of profit or loss and other comprehensive income for the year ended December 31, 2015 were as follows:

 

                                                           
     VisEra Holding         
     NT$         
     (In Millions)                              

Net revenue

    $      254.3      
  

 

 

     

Net income

    $ 13.9     
  

 

 

     

 

Had the business combination of VisEra Holding been in effect on January 1, 2015, the Company’s net revenue and net income for the year ended December 31, 2015 would have been NT$846,401.8 million and NT$302,964.4 million, respectively. This pro-forma information is for illustrative purposes only and is not necessarily an indication of revenue and results of operations of the Company that actually would have been achieved had the acquisition been completed on January 1, 2015, nor is it intended to be a projection of future results. The aforementioned pro-forma net revenue and net income were calculated based on the fair value of assets acquired and liabilities assumed at the date of acquisition.