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Affected Items of Consolidated Balance Sheet |
As of December 31, 2017 |
Effect of adoption of new standards |
As of January 1, 2018 |
Remark |
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Financial assets at fair value through profit or loss, non-current |
$ | — | $ | 4,135,207 | $ | 4,135,207 | (A) | |||||||
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Available-for-sale financial assets, non-current |
4,135,207 | (4,135,207 | ) | — | (A) | |||||||||
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Contract assets - current |
— | 1,766,801 | 1,766,801 | (C)(a)(b) | ||||||||||
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Accounts receivable, net |
16,861,111 | (909,849 | ) | 15,951,262 | (B), (C)(a) | |||||||||
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Other receivables |
492,081 | (1,204 | ) | 490,877 | (B) | |||||||||
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Inventories |
6,123,682 | (717,551 | ) | 5,406,131 | (C)(b) | |||||||||
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Deferred income tax assets |
614,733 | 1,805 | 616,538 | (E) | ||||||||||
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Total affected assets |
$ | 28,226,814 | $ | 140,002 | $ | 28,366,816 | ||||||||
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Contract liabilities - current |
$ | — | $ | 12,128 | $ | 12,128 | (C)(c) | |||||||
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Other current liabilities - other |
485,482 | (12,128 | ) | 473,354 | (C)(c), (D) | |||||||||
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Deferred income tax liabilities |
479,583 | 27,196 | 506,779 | (E) | ||||||||||
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Total affected liabilities |
965,065 | 27,196 | 992,261 | |||||||||||
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Unappropriated earnings |
10,062,036 | 2,457,578 | 12,519,614 | (A),(B),(C)(b),(E) | ||||||||||
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Accumulated other comprehensive income |
1,712,456 | (2,344,772 | ) | (632,316 | ) | (A) | ||||||||
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Total affected equity |
11,774,492 | 112,806 | 11,887,298 | |||||||||||
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Total affected liabilities and equity |
$ | 12,739,557 | $ | 140,002 | $ | 12,879,559 | ||||||||
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Explanation:
| (A) | When adopting IFRS 9, the Group expects to reclassify available-for-sale financial assets of $4,135,207 to financial assets at fair value through profit or loss, and increase retained earnings and decrease accumulated other comprehensive income in the amounts of $2,344,772 and $2,344,772, respectively. |
| (B) | In line with the regulations of IFRS 9 on provision for impairment, accounts receivable and other receivables will be reduced by $8,370 and $1,204, respectively, and retained earnings will be decreased by $9,574. |
| (C) | Presentation of contract assets and contract liabilities |
| When | adopting IFRS 15, the Group expects to change the presentation of certain accounts in the balance sheet as follows: |
| (a) | Under IFRS 15, the services which have been rendered but not yet billed will be recognized as contract assets, but were previously presented as part of accounts receivable in the balance sheet. As of January 1, 2018, the balance of contract asset is $901,479. |
| (b) | Under IFRS 15, the services which have been processed before completion will be recognized as contract assets over time. As of January 1, 2018, the contract assets and retained earnings will be increased by $865,322 and $147,771, respectively, and the related work-in-process inventories to satisfy the performance obligation over time will be decreased by $717,551. |
| (c) | Under IFRS 15, the Group’s obligation to transfer services to a customer for which the Group has received consideration from customer are recognized as contract liabilities, but were previously presented as advance sales receipts in the balance sheet. As of January 1, 2018, the balance of contract liabilities will be $12,128. |
| (D) | Under IFRS 15, current provisions (shown as other liabilities - current are reclassified as refund liabilities (shown as other liabilities - current), but were previously presented as current provisions (shown as other liabilities - current) in the balance sheet. As of January 1, 2018, the balance is $316,391. |
| (E) | Recognition of deferred income tax assets and liabilities. |
When initially adopting IFRS 9 and IFRS 15, the Group will recognize deferred income tax assets and liabilities for the temporary differences resulted from the adjustments. Accordingly, deferred income tax assets and deferred income tax liabilities will be increased by $1,805 and $27,196 and retained earnings will be decreased by $25,391, respectively, on January 1, 2018.