HTC 2013 Annual Report Download - page 121

FINANCIAL INFORMATION FINANCIAL INFORMATION
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gains from intercompany transactions should
be recognized as a reduction of investments
accounted for using the equity method. Thus,
as of January 1 and December 31, 2012, the
reclassification adjustment resulted in decreases
of NT$1,151,531 thousand and NT$2,354,363
thousand, respectively, in "investments
accounted for using the equity method" and
"other current liabilities".
f. Material adjustment to statements of cash flows
Under ROC GAAP, using the indirect method, the
interests and dividends received and interests
paid were usually classified as operating cash
flows, and dividends paid were usually classified
as financial cash flows and supplemental cash
flows information is provided for interests paid.
However, under IFRS 7, cash flows from interest
and dividends received and paid shall each be
disclosed separately. Each shall be classified in
a consistent manner from period to period either
as operating, investing or financing activities.
Thus, for the year ended December 31, 2012, the
cash flows of interests received in the amount of
NT$475,053 thousand was disclosed separately.
As of January 1 and December 31, 2012, time
deposits with original maturities more than three
months amounted to NT$25,474,750 thousand
and NT$1,960,900 thousand, respectively, and not
to be classified as "cash and cash equivalents" in
accordance with Regulations since they are held
for investment purpose. For more details of this
adjustment, please refer to Note 39 section e. 1).
Except for the above, the Company's statements
of cash flows in accordance with Regulations and
ROC GAAP had no other significant differences.
5.INDEPENDENT AUDITORS' REPORT
The Board of Directors and Stockholders
HTC Corporation
We have audited the accompanying consolidated balance sheets of HTC Corporation and its subsidiaries
(collectively referred to as the "Company") as of December 31, 2013, December 31, 2012 and January 1, 2012,
and the related consolidated statements of comprehensive income, changes in equity and cash flows for
the years ended December 31, 2013 and 2012. These consolidated financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on these consolidated financial
statements based on our audits.
We conducted our audits in accordance with the Rules Governing the Audit of Financial Statements by
Certified Public Accountants and auditing standards generally accepted in the Republic of China. Those
rules and standards require that we plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial
statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall consolidated financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the consolidated financial position of the Company as of December 31, 2013, December 31, 2012 and
January 1, 2012, and their consolidated financial performance and their consolidated cash flows for the years
ended 2013 and 2012, in conformity with the Regulations Governing the Preparation of Financial Reports by
Securities Issuers and International Financial Reporting Standards endorsed by the Financial Supervisory
Commission of the Republic of China.
We have also audited the parent company only financial statements of HTC Corporation as of and for the
years ended December 31, 2013 and 2012 on which we have issued an unqualified report.
February 28, 2014
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows
in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards,
procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from
the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or
any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and consolidated financial statements shall prevail.
Also, as stated in Note 4 to the consolidated financial statements, the additional footnote disclosures that are not required under accounting principles and
practices generally applied in the Republic of China were not translated into English.