| d) | Basis of consolidation |
The consolidated financial statements include the accounts of ChipMOS Taiwan and all entities controlled by ChipMOS Taiwan. The financial statements of subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. The results of subsidiaries are consolidated from the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.
Profit or loss and each component of other comprehensive income are attributed to the owners of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control described in the accounting policy for subsidiaries below.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’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 Company.
When the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any investment retained and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. The Group’s share of components previously recognized in other comprehensive income is reclassified to consolidated statements of comprehensive income or retained profits, as appropriate, on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.
Subsidiaries included in the consolidated financial statements:
| Percentage of Ownership (%) |
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| December 31, | ||||||||||||||||||
|
Name of investor |
Name of investee |
Main businesses |
Location |
2016 | 2017 | Note | ||||||||||||
|
The Company |
ChipMOS U.S.A., Inc. (“ChipMOS USA”) | Research, development and marketing of semiconductors, circuits, and electronic related products | San Jose, USA | 100 | 100 | |||||||||||||
|
The Company |
ChipMOS BVI | Holding company | British Virgin Islands | 100 | 100 | |||||||||||||
|
ChipMOS BVI |
ChipMOS Shanghai | Semiconductor assembling and testing services | People’s Republic of China (“PRC”) | 100 | — | * | ||||||||||||
| * | On November 30, 2016, the Company’s Board of Directors approved ChipMOS BVI’s disposal of 54.98% shareholding of its subsidiary, ChipMOS Shanghai. The transaction was completed in March 2017, thereafter, ChipMOS Shanghai was excluded from the consolidated financial statements and recorded as “Investment in associates”. Detailed information is provided in Note 13. |