HTC 2013 Annual Report Download - page 109

FINANCIAL INFORMATION FINANCIAL INFORMATION
214 215
The appropriations of earnings for 2012 were
proposed according to the Company's financial
statements for the years ended December 31, 2012,
which were prepared in accordance with the pre-
amended Guidelines Governing the Preparation
of Financial Reports by Securities Issuers and
accounting principles generally accepted in the
Republic of China, and by reference to the balance
sheet for the year ended December 31, 2012, which
was prepared in accordance with the amended
Guidelines Governing the Preparation of Financial
Reports by Securities Issuers and International
Financial Reporting Standards.
Information on the earnings appropriation and the
bonus to employees, directors and supervisors is
available on the Market Observation Post System
website of the Taiwan Stock Exchange.
Other Equity
December
31, 2013
December
31, 2012
January 1,
2012
Exchange
differences on
translating foreign
operations
$559,719 $(1,089,693) $-
Unrealized (loss)
gains on available-
for-sale financial
assets
(2,021) 9,716 2,939
Cash flow hedge - 194,052 -
$557,698 $(885,925) $2,939
a. Exchange differences on translating foreign
operations
Exchange differences relating to the translation
of the results and net assets of the Company's
foreign operations from their functional
currencies to the Company's presentation
currency (New Taiwan dollars) were recognized
directly in other comprehensive income and
accumulated in the foreign currency translation
reserve. Exchange differences previously
accumulated in the foreign currency translation
reserve were reclassified to profit or loss on the
disposal of the foreign operation.
b.
Unrealized gains or losses on available-for-sale
financial assets
Unrealized gains or losses on available-for-sale
financial assets represents the cumulative gains
and losses arising on the revaluation of AFS
financial assets that have been recognized in
other comprehensive income, net of amounts
reclassified to profit or loss when those assets
have been disposed of or are determined to be
impaired.
c. Cash flow hedging
The cash flow hedging reserve represents the
cumulative effective portion of gains or losses
arising on changes in fair value of hedging
instruments entered into for cash flow hedges.
The cumulative gain or loss arising on changes
in fair value of the hedging instruments that
are recognized and accumulated under the
heading of cash flow hedging reserve will be
transferred to profit or loss only when the
hedged transaction affects the profit or loss,
or included as a basis adjustment to the non-
financial hedged item.
Treasury Shares
On August 2, 2013, the Company's board of
directors passed a resolution to buy back 15,000
thousand Company shares from the open market.
The repurchase period was between August 5,
2013 and October 4, 2013, and the repurchase
price ranged from NT$140 to NT$290 per share.
If the Company's share price is lower than this
price range, the Company may continue to buy
back its shares. The Company had bought back
7,789 thousand shares for NT$1,033,846 thousand
during the repurchase period, which retired by the
Company's board of directors in November 2013.
The Company had repurchased company
shares from the open market for transferring
to employees and some of them had not been
transferred before the expiry time. The Board
of Directors approved the retirement of 1,912
thousand treasury stocks on September 27, 2013.
The related information on the treasury stock
transactions was as follows:
(In Thousands of Shares)
Reason to
Reacquire
Number
of Shares,
Beginning
of Year
Addition
During the
Year
Reduction
During the
Year
Number
of Shares,
End of
Year
For 2013
To transfer
shares to the
Company's
employees
20,825 - 1,912 18,913
To maintain
the
Company's
credibility and
stockholders'
interest
- 7,789 7,789 -
20,825 7,789 9,701 18,913
For 2012
To transfer
shares to the
Company's
employees
14,011 6,814 - 20,825
Based on the Securities and Exchange Act of the
ROC, the number of reacquired shares should not
exceed 10% of a company's issued and outstanding
shares, and the total purchase amount should not
exceed the sum of the retained earnings, additional
paid-in capital in excess of par and realized capital
surplus.
Under the Securities and Exchange Act, the
Company shall neither pledge treasury shares nor
exercise shareholders' rights on these shares, such
as rights to dividends and to vote.
24. REVENUE
For the Year Ended
December 31
2013 2012
Sale of goods
Other operating income
$191,186,751
3,107,293
$269,079,239
1,622,448
$194,294,044 $270,701,687
Some sales denominated in foreign currencies
were hedged for cash flow risk. Accordingly,
the Company transferred NT$262,648 thousand
of the gain on the hedging instrument that was
determined to be the effective portion of the
hedge to sales of goods for the year ended
December 31, 2013.
25. NET PROFIT (LOSS) FROM
CONTINUING OPERATIONS
a. Other income
For the Year Ended
December 31
2013 2012
Interest income
Cash in bank $214,746 $421,057
Held-to-maturity
financial assets
794 1,710
Loan 211,139 82,027
426,679 504,794
Others 248,980 459,705
$675,659 $964,499
b. Other gains and losses
For the Year Ended
December 31
2013 2012
Gain on sale of available-for-
sale financial assets
$- $7,695
Net foreign exchange gains 482,568 710,312
Valuation gains on financial
assets classified as held for
trading
162,297 6,950
Hedge ineffective portion on
cash flow hedges
151,305 10,467
Gain on disposal of
intangible assets
110,602 -
Impairment losses (111,085) (45,017)
Other losses (37,678) (109,986)
$758,009 $580,421
Gain or loss on financial assets and liabilities
held for trading was derived from forward
exchange transactions. The Company entered
into forward exchange transactions to manage
exposures related to exchange rate fluctuations.