| 19. | PROVISIONS |
The Company’s current provisions were provisions for sales returns and allowances.
| Sales Returns and Allowances |
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|
NT$ (In Millions) |
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|
Year ended December 31, 2015 |
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|
Balance, beginning of year |
$ | 10,445.5 | ||
|
Provision |
17,723.2 | |||
|
Payment |
(18,133.1 | ) | ||
|
Effect of acquisition of subsidiary |
126.0 | |||
|
Effect of exchange rate changes |
1.9 | |||
|
|
|
|||
|
Balance, end of year |
$ | 10,163.5 | ||
|
|
|
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| Sales Returns and Allowances |
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|
NT$ (In Millions) |
||||
|
Year ended December 31, 2016 |
||||
|
Balance, beginning of year |
$ | 10,163.5 | ||
|
Provision |
36,519.3 | |||
|
Payment |
(28,569.3 | ) | ||
|
Effect of exchange rate changes |
(75.7 | ) | ||
|
|
|
|||
|
Balance, end of year |
$ | 18,037.8 | ||
|
|
|
|||
|
Year ended December 31, 2017 |
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|
Balance, beginning of year |
$ | 18,037.8 | ||
|
Provision |
44,833.6 | |||
|
Payment |
(48,884.7 | ) | ||
|
Effect of exchange rate changes |
(24.9 | ) | ||
|
|
|
|||
|
Balance, end of year |
$ | 13,961.8 | ||
|
|
|
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Provisions for sales returns and allowances are estimated based on historical experience and the consideration of varying contractual terms, and are recognized as a reduction of revenue in the same year of the related product sales.