| 13. | INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD |
| December 31 | ||||||||||||
|
2016
(Retrospectively Adjusted)
|
2017 | |||||||||||
| NT$ | NT$ | US$ (Note 4) | ||||||||||
| Investments in associates | $ | 49,154,140 | $ | 48,267,237 | $ | 1,628,449 | ||||||
| Investments in joint venture | 670,550 | 486,514 | 16,414 | |||||||||
| $ | 49,824,690 | $ | 48,753,751 | $ | 1,644,863 | |||||||
| a. | Investments in associates |
| 1) | Investments in associates accounted for using the equity method consisted of the following: |
| Carrying Amount as of December 31 | ||||||||||||||||
|
2016
(Retrospectively Adjusted)
|
2017 | |||||||||||||||
| Operating | NT$ | NT$ | US$ | |||||||||||||
| Name of Associate | Main Business | Location | (Note 4) | |||||||||||||
| Material associate | ||||||||||||||||
| Siliconware Precision Industries Co., Ltd. (“SPIL”) | Engaged in assembly, testing and turnkey services of integrated circuits | ROC | $ | 45,898,225 | $ | 45,210,371 | $ | 1,525,316 | ||||||||
| Associates that are not individually material | ||||||||||||||||
| Deca Technologies Inc.（”DECA”） | Holding company and the group engaged in manufacturing, development and marketing of wafer level packaging and interconnect technology | British Cayman Islands | 1,813,677 | 1,583,124 | 53,412 | |||||||||||
| Hung Ching Development & Construction Co. (“HC”) | Engaged in the development, construction and leasing of real estate properties | ROC | 1,156,833 | 1,248,711 | 42,129 | |||||||||||
| Hung Ching Kwan Co. (“HCK”) | Engaged in the leasing of real estate properties | ROC | 321,120 | 309,630 | 10,447 | |||||||||||
(continued)
| Carrying Amount as of December 31 | ||||||||||||||||
|
2016
(Retrospectively Adjusted)
|
2017 | |||||||||||||||
| Operating | NT$ | NT$ | US$ | |||||||||||||
| Name of Associate | Main Business | Location | (Note 4) | |||||||||||||
| Advanced Microelectronic Products Inc. (“AMPI”) | Engaged in integrated circuit | ROC | $ | 264,434 | $ | 215,550 | $ | 7,272 | ||||||||
| 49,454,289 | 48,567,386 | 1,638,576 | ||||||||||||||
| Less: Deferred gain on transfer of land | 300,149 | 300,149 | 10,127 | |||||||||||||
| $ | 49,154,140 | $ | 48,267,237 | $ | 1,628,449 | |||||||||||
(concluded)
| 2) | At each balance sheet date, the percentages of ownership held by the Group were as follows: |
| December 31 | ||||||||
| 2016 | 2017 | |||||||
| SPIL | 33.29 | % | 33.29 | % | ||||
| DECA | 22.07 | % | 22.04 | % | ||||
| HC | 26.22 | % | 26.22 | % | ||||
| HCK | 27.31 | % | 27.31 | % | ||||
| AMPI | 38.76 | % | 38.76 | % | ||||
| 3) | In July 2016, the Company acquired 98,490 thousand preferred shares issued by DECA at US$0.608 per share with a total consideration of NT$1,934,062 thousand (US$59,882 thousand). The percentage of ownership was 22.07% and the Company obtained significant influence over DECA. In 2017, the percentage of ownership was decreased to 22.04% since DECA’s share options were exercised. The Company’s subsidiary, ASE Test, Inc., purchased 90,000 thousand ordinary share of AMPI in a private placement with NT$225,000 thousand paid in cash in November 2016. The private-placement ordinary shares were restricted for disposal during a 3-year lock-up period. As a result, the percentage of ownership held by the Group was increased to 38.76%. |
| 4) | The Group has successively completed the identification of the difference between the cost of the investments and the Group’s share of the net fair value of DECA and AMPI’s identifiable assets and liabilities in the second quarter and the third quarter in 2017. Therefore, the Group has retrospectively adjusted the comparative consolidated financial statements for prior periods. As of December 31, 2016, the retrospective adjustments are summarized as follows: |
| After Retrospectively Adjusted | Before Retrospectively Adjusted | |||||||
| NT$ | NT$ | |||||||
| Investments accounted for using the equity method | ||||||||
| December 31, 2016 | ||||||||
| DECA | $ | 1,813,677 | $ | 1,820,329 | ||||
| AMPI | $ | 264,434 | $ | 266,085 | ||||
The aforementioned retrospective adjustments are accordingly recorded as a decrease of retained earnings as of December 31, 2016.
| 5) | Fair values (Level 1 inputs in terms of IFRS 13) of investments in associates with available published price quotation are summarized as follows: |
| December 31 | ||||||||||||
| 2016 | 2017 | |||||||||||
| NT$ | NT$ | US$ (Note 4) | ||||||||||
| SPIL | $ | 49,634,805 | $ | 52,176,190 | $ | 1,760,330 | ||||||
| HC | $ | 1,310,829 | $ | 1,695,156 | $ | 57,191 | ||||||
| AMPI | $ | 307,038 | $ | 468,572 | $ | 15,809 | ||||||
| 6) | Summarized financial information in respect of the Group’s material associate |
The summarized financial information below represents amounts shown in SPIL’s consolidated financial statements prepared in accordance with IFRSs and adjusted by the Group for equity method accounting purposes.
| December 31 | ||||||||||||
| 2016 | 2017 | |||||||||||
| NT$ | NT$ | US$ (Note 4) | ||||||||||
| Current assets | $ | 50,451,295 | $ | 49,065,912 | $ | 1,655,395 | ||||||
| Non-current assets | 107,573,251 | 101,693,417 | 3,430,952 | |||||||||
| Current liabilities | (41,088,439 | ) | (26,194,615 | ) | (883,759 | ) | ||||||
| Non-current liabilities | (17,518,410 | ) | (27,213,266 | ) | (918,126 | ) | ||||||
| Equity | $ | 99,417,697 | $ | 97,351,448 | $ | 3,284,462 | ||||||
| Proportion of the Group’s ownership interest in SPIL | 33.29 | % | 33.29 | % | 33.29 | % | ||||||
| Net assets attributable to the Group | $ | 33,096,151 | $ | 32,408,297 | $ | 1,093,397 | ||||||
| Goodwill | 12,802,074 | 12,802,074 | 431,919 | |||||||||
| Carrying amount | $ | 45,898,225 | $ | 45,210,371 | $ | 1,525,316 | ||||||
| For the Year Ended December 31 | ||||||||||||
| 2016 | 2017 | |||||||||||
| NT$ | NT$ | US$ (Note 4) | ||||||||||
| Operating revenue | $ | 85,111,913 | $ | 83,554,385 | $ | 2,818,974 | ||||||
| Gross profit | $ | 15,027,247 | $ | 12,464,792 | $ | 420,540 | ||||||
| Profit before income tax | $ | 7,351,661 | $ | 4,347,810 | $ | 146,687 | ||||||
| Net profit for the year | $ | 5,484,462 | $ | 2,822,231 | $ | 95,217 | ||||||
| Other comprehensive income (loss) for the year | (2,373,532 | ) | 579,057 | 19,536 | ||||||||
| Total comprehensive income for the year | $ | 3,110,930 | $ | 3,401,288 | $ | 114,753 | ||||||
| Cash dividends received from SPIL | $ | 3,941,740 | $ | 1,815,275 | $ | 61,244 | ||||||
| 7) | Aggregate information of associates that are not individually material |
| For the Year Ended December 31 | ||||||||||||||||
| 2015 | 2016 | 2017 | ||||||||||||||
| NT$ | NT$ | NT$ | US$ | |||||||||||||
| (Note 4) | ||||||||||||||||
| The Group’s share of: | ||||||||||||||||
| Net profit (loss) for the year | $ | 120,749 | $ | (139,366 | ) | $ | (190,532 | ) | $ | (6,428 | ) | |||||
| Other comprehensive income (loss) for the year | (2,916 | ) | (115,650 | ) | 59,676 | 2,013 | ||||||||||
| Total comprehensive income (loss) for the year | $ | 117,833 | $ | (255,016 | ) | $ | (130,856 | ) | $ | (4,415 | ) | |||||
| b. | Investments in joint venture |
| 1) | The Group’s investment in a joint venture that was not individually material and accounted for using the equity method consisted of ASE Embedded Electronics Inc. (“ASEEE”). In May 2015, the Group and TDK Corporation (“TDK”) entered into an agreement to establish a joint venture to invest in ASEEE. The Group additionally participated in ASEEE’s cash capital increase with NT$146,903 thousand in September 2016. As of December 31, 2016 and 2017, the percentages of ownership were both 51%. ASEEE are located in ROC and engaged in the production of embedded substrate. According to the joint arrangement, the Group and TDK must act together to direct the relevant operating activities and, as a result, the Group does not control ASEEE. The investment in ASEEE is accounted for using the equity method. |
| 2) | Aggregate information of the joint venture that is not individually material |
| For the Year Ended December 31 | ||||||||||||
| 2016 | 2017 | |||||||||||
| NT$ | NT$ | US$ (Note 4) | ||||||||||
| The Group’s share of net loss and total comprehensive loss for the year | $ | (90,478 | ) | $ | (184,366 | ) | $ | (6,220 | ) | |||