HTC 2014 Annual Report Download - page 120

• Financial information Financial information •
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reporting period presented or retrospectively with the
cumulative effect of initially applying this Standard
recognized at the date of initial application.
Except for the above impact, as of the date the
consolidated financial statements were authorized
for issue, the Company is continuingly assessing the
possible impact that the application of other standards
and interpretations will have on the Company’s financial
position and financial performance, and will disclose the
relevant impact when the assessment is complete.
4. SIGNIFICANT ACCOUNTING POLICIES
Statement of Compliance
The consolidated financial statements have been prepared in
accordance with the Regulations Governing the Preparation
of Financial Reports by Securities Issuers, or other regulations
and IFRSs as endorsed by the FSC.
Basis of Preparation
The consolidated financial statements have been prepared on
the historical cost basis except for financial instruments that
are measured at fair value. Historical cost is generally based
on the fair value of the consideration given in exchange for
assets.
For readers’ convenience, the accompanying consolidated
financial statements have been translated into English
from the original Chinese version prepared and used in the
Republic of China. If inconsistencies arise between the
English version and the Chinese version or if differences arise
in the interpretations between the two versions, the Chinese
version of the consolidated financial statements shall prevail.
However, the accompanying consolidated financial statements
do not include the English translation of the additional
footnote disclosures that are not required under accounting
principles and practices generally applied in the Republic of
China but are required by the Securities and Futures Bureau
for their oversight purposes.
Classification of Current and Non-current Assets
and Liabilities
Current assets include:
a. Those assets held primarily for trading purposes;
b. Those assets to be realized within twelve months;
c. Cash and cash equivalents from the balance sheet date
unless the asset is to be used for an exchange or to settle
a liability, or otherwise remains restricted, at more than
twelve months after the balance sheet date.
Current liabilities are:
a. Obligations incurred for trading purposes;
b. Obligations to be settled within twelve months after the
reporting period, even if an agreement to refinance, or to
reschedule payments, on a long-term basis is completed
after the reporting period and before the consolidated
financial statements are authorized for issue; and
c. An unconditional right to defer settlement of the liability
for at least twelve months after the reporting period.
Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
Aforementioned assets and liabilities that are not classified as
current are classified as non-current.
Basis of Consolidation
a. Principles for preparing consolidated financial
statements
The consolidated financial statements incorporate
the financial statements of the HTC and the entities
controlled by the HTC (its subsidiaries).
Income and expenses of subsidiaries acquired or disposed
of during the period are included in the consolidated
statement of profit or loss and other comprehensive
income from the effective date of acquisition up to the
effective date of disposal, as appropriate.
When necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting
policies into line with those used by the Company.
All intra-group transactions, balances, income and
expenses are eliminated in full upon consolidation.
Changes in the Company’s ownership interests in existing
subsidiaries
Changes in the Company’s ownership interests in
subsidiaries that do not result in the Company losing
control over the subsidiaries are accounted for as equity
transactions. The carrying amounts of the Company’s
interests and the non-controlling interests are adjusted
to reflect the changes in their relative interests in the
subsidiaries. Any difference between the amount by
which the non-controlling interests are adjusted and
the fair value of the consideration paid or received is
recognized directly in equity and attributed to owners of
the parent.
When the Company loses control of a subsidiary, a gain
or loss is recognized in profit or loss and is calculated as
the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former
subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill), and liabilities of the former
subsidiary and any non-controlling interests at their carrying amounts at the date when control is lost. If the Company loses control
of a subsidiary, the Company accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on
the same basis as would be required if the Company had directly disposed of the related assets or liabilities.
The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on
initial recognition for subsequent accounting under IAS 39 “Financial Instruments: Recognition and Measurement” or, when
applicable, the cost on initial recognition of an investment in an associate or a jointly controlled entity.
b. Subsidiary included in consolidated financial statements
The consolidated entities as of December 31, 2014 and 2013 were as follows:
% of Ownership
Investor Investee Main Businesses
December
31, 2014
December
31, 2013 Remark
HTC Corporation H.T.C. (B.V.I.) Corp. International holding company 100.00 100.00 -
Communication Global Certification
Inc.
Import of controlled telecommunications
radio-frequency devices and software
services
100.00 100.00 -
High Tech Computer Asia Pacific Pte.
Ltd.
International holding company;
marketing, repair and after-sales services
100.00 100.00 -
HTC Investment Corporation General investing activities 100.00 100.00 -
PT. High Tech Computer Indonesia Marketing, repair and after-sales service 1.00 1.00 -
HTC I Investment Corporation General investing activities 100.00 100.00 -
HTC Holding Cooperatief U.A. International holding company 0.01 0.01 -
HTC Investment One (BVI)
Corporation
Holding S3 Graphics Co., Ltd. and general
investing activities
100.00 100.00 -
H.T.C. (B.V.I.) Corp. High Tech Computer Corp. (Suzhou) Manufacture and sale of smart mobile
devices
100.00 100.00 -
High Tech Computer
Asia Pacific Pte. Ltd.
High Tech Computer (H.K.) Limited Marketing, repair and after-sales service - 100.00 1)
HTC (Australia and New Zealand)
Pty. Ltd.
〃100.00 100.00 -
HTC Philippines Corporation 〃99.99 99.99 -
PT. High Tech Computer Indonesia 〃99.90 99.00 -
HTC (Thailand) Limited 〃100.00 100.00 -
HTC India Private Ltd. 〃99.00 99.00 -
HTC Malaysia Sdn. Bhd. 〃100.00 100.00 -
HTC Innovation Limited 〃- 100.00 2)
HTC Communication Co., Ltd. Manufacture and sale of smart mobile
devices and after-sales service
100.00 100.00 -
HTC HK, Limited International holding company;
marketing, repair and after-sales services
100.00 100.00 -
HTC Holding Cooperatief U.A. International holding company 99.99 99.99 -
HTC Communication Technologies
(SH)
Design, research and development of
application software
100.00 100.00 -
HTC Vietnam Services One Member
Limited Liability Company
Marketing, repair and after-sales services 100.00 - 3)
HTC Myanmar Company Limited 〃99.00 - 4)
(Continued)