| (24) | Revenue Recognition |
The Group provides assembly, testing, and turnkey services for integrated circuits. The Group recognizes revenue when:
| A. | the amount of revenue can be measured reliably; |
| B. | it is probable that the economic benefits associated with the transaction will flow to the entity; |
| C. | the stage of completion of the transaction at the end of the reporting period can be measured reliably; |
| D. | the costs incurred for the transaction and the cost to complete the transaction can be measured reliably. |
Services provided by the Group include wafer bumping, wafer sort, IC packaging and final testing. Actual services and fees of the Group may vary by customers and are pre-agreed before provision of services. The Group regards each of the captioned services as a separate stage. Fees for each stage of services are negotiated independently and the fee for a specific stage is the then market price for that stage. Revenue is recognized when each stage of services has been completed. Each stage is performed as a whole and may not be separated or proportioned. The sales discount allowance is estimated by historical experiences and recorded as a deduction to the revenue.