Business Context and Reporting Period
This Form 6-K filing by ChipMOS TECHNOLOGIES INC., dated April 20, 2017, discloses the differences between the Company's 2016 consolidated financial statements prepared under Taiwan IFRSs and those prepared under International Financial Reporting Standards (IFRSs) for the U.S. SEC Form 20-F. The reporting period covers the fiscal year ended December 31, 2016.
Key Financial Metrics
| Metric | Taiwan IFRSs | IFRSs (SEC Filing) |
|---|---|---|
| Consolidated Net Profit (NT$ thousands) | 1,532,292 | 1,707,222 |
| Total Comprehensive Income (NT$ thousands) | 1,295,871 | 1,470,801 |
| Basic EPS (NT$) | 1.78 | 1.99 |
| Diluted EPS (NT$) | 1.76 | 1.97 |
| Total Consolidated Liabilities (NT$ thousands) | 15,022,446 | 15,048,258 |
| Equity Attributable to Equity Holders (NT$ thousands) | 16,273,514 | 16,247,702 |
The filing text does not provide specific values for revenue, cash flow, operating margins, or liquidity ratios beyond the balance sheet totals listed above.
Material Changes and Differences
The primary material change is the increase in reported net profit and comprehensive income under IFRSs compared to Taiwan IFRSs. Specifically, net profit is higher by NT$174,930 thousand under IFRSs. Conversely, total equity is slightly lower under IFRSs by NT$25,812 thousand, while liabilities are marginally higher by NT$25,812 thousand.
Causes of Differences and Management Commentary
Management attributes the financial statement differences to two main factors:
- Tax Recognition Timing: Differences in the timing of recognizing the additional 10% income tax on unappropriated retained earnings.
- Audit Report Standards: The audit report for the SEC filing adheres to Public Company Accounting Oversight Board (PCAOB) requirements, whereas the Taiwan filing follows the newly promulgated Statements of Auditing Standards No. 57 of the Republic of China.
The filing does not contain specific forward-looking guidance, risk factors, or contingencies beyond the accounting standard discrepancies.
Investor Verification Checklist
- Verify the impact of the 10% unappropriated retained earnings tax on future cash flows under both accounting standards.
- Confirm the reconciliation of the NT$174,930 thousand difference in net profit between the two reporting frameworks.
- Review the full 2016 Form 20-F and the Company's Investor Relations website for detailed breakdowns of revenue and cash flow not included in this summary.
- Assess the implications of the different audit standards on the reliability of the financial statements for U.S. investors.