HTC 2013 Annual Report Download - page 138

Download and view the complete annual report

Please find page 138 of the 2013 HTC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

FINANCIAL INFORMATION FINANCIAL INFORMATION
272 273
10. DERIVATIVE FINANCIAL
INSTRUMENTS FOR HEDGING
December 31,
2013
December 31,
2012
January 1,
2012
Hedging
derivative
assets
Cash flow
hedge -
forward
exchange
contracts
$- $204,519 $-
The Company's foreign-currency cash flows
derived from the highly probable forecast
transaction may lead to risks on foreign-currency
financial assets and liabilities and estimated
future cash flows due to the exchange rate
fluctuations. The Company assesses the risks
may be significant; thus, the Company entered
into derivative contracts to hedge against foreign-
currency exchange risks.
The terms of the forward exchange contracts had
been negotiated to match the terms of the respective
designated hedged items. The outstanding forward
exchange contracts of the Company at the end of the
reporting period were as follows:
Buy/
Sell Currenc
Maturity
Date
Notional
Amount
(In
Thousands)
December 31,
2012
Foreign
exchange
contracts
Buy USD/JPY 2013.
03.28
USD 95,356
The Company supplied products to clients in
Japan and signed forward exchange contracts
to avoid its exchange rate exposure due to the
forecast sales. Those forward exchange contracts
were designated as cash flow hedges.
Gains and losses of hedging instruments
transferred from equity to profit or loss were
12. OTHER CURRENT FINANCIAL
ASSETS
December 31,
2013
December 31,
2012
January 1,
2012
Trust assets for
employee benefit
$2,359,041 $3,645,820 $-
Time deposits with
original maturities
more than three
months
411,982 2,915,624 25,543,450
$2,771,023 $6,561,444 $25,543,450
To protect the rights and interests of its employees,
the Company deposited unpaid employee bonus in
a new trust account in September 2012 and were
classified as other current financial assets.
The market interest rates of the time deposits with
original maturity more than three months were as
follows:
December 31,
2013
December 31,
2012
January 1,
2012
Time deposits
with original
maturities
more than
three months
2.45%~3.08% 0.39%~3.30% 0.39%~3.30%
For details of pledged other current financial
assets, please refer to Note 34.
included in the following line items in the
consolidated statements of comprehensive income:
For the Year Ended December 31
2013 2012
Revenues
Other gains and losses
$262,648
151,305
$-
10,467
$413,953 $10,467
11. FINANCIAL ASSETS
MEASURED AT COST
December
31, 2013
December
31, 2012
January 1,
2012
Domestic
unlisted equity
investment
$698,861 $698,861 $698,861
Overseas
unlisted equity
investment
1,830,694 1,781,514 2,065,876
Overseas unlisted
mutual funds
2,073,506 1,824,532 643,917
$ 4,603,061 $ 4,304,907 $ 3,408,654
Classified
according to
financial asset
measurement
categories
Available-for-
sale financial
assets
$4,603,061 $4,304,907 $3,408,654
Management believed that the above unlisted
equity investments and mutual funds held by the
Company, whose fair value cannot be reliably
measured due to the range of reasonable fair value
estimates was so significant; therefore, they were
measured at cost less impairment at the end of
reporting period.
The Company made a overseas unlisted equity
investment in OnLive, Inc. In August 2012, OnLive,
Inc. declared to have an asset restructuring due
to the lack of operating cash and an inability to
raise new capital. The Company assessed that
its investment could not be recovered and thus
recognized an impairment loss of NT$1,199,045
thousand.
13. NOTES RECEIVABLE, TRADE
RECEIVABLES AND OTHER
RECEIVABLES
December 31,
2013
December 31,
2012
January 1,
2012
Note and trade
receivables
Note
receivables
$- $- $755,450
Trade
receivables
26,420,770 43,118,861 65,518,876
Trade
receivables -
related parties
1,309 221,050 473
Less:
Allowances for
doubtful debts
(3,050,907) (2,086,085) (1,555,008)
$23,371,172 $41,253,826 $64,719,791
Other receivables
Loan
receivables -
fluctuation rate
$- $6,554,025 $-
Receivables
from disposal of
investments
1,182,393 4,369,350 -
VAT refund
receivables
355,442 391,276 792,364
Interest
receivables
10,878 54,135 23,261
Others 1,771,333 1,124,926 1,133,006
$3,320,046 $12,493,712 $1,948,631
Current - other
receivables
$2,137,653 $8,124,362 $1,948,631
Non-current -
other receivables
1,182,393 4,369,350 -
$3,320,046 $12,493,712 $1,948,631
Trade Receivables
The credit period on sales of goods is 30-75 days.
No interest is charged on trade receivables before
the due date. Thereafter, interest is charged at
1-18% per annum on the outstanding balance,
which is considered to be non-controversial,
to some of customers. In determining the
recoverability of