Business Context and Reporting Period
This Form 6-K filing by ChipMOS Technologies Inc. is dated April 19, 2018. The report details the differences between consolidated financial statements prepared under Taiwan IFRSs and International Financial Reporting Standards (IFRSs) for the fiscal year ended December 31, 2017.
Key Financial Metrics (Year Ended Dec 31, 2017)
| Metric | Taiwan IFRSs | IFRSs (SEC Filing) |
|---|---|---|
| Net Profit (NT$ thousand) | 3,026,528 | 2,796,882 |
| Total Comprehensive Income (NT$ thousand) | 2,836,626 | 2,606,980 |
| Basic EPS (NT$) | 3.57 | 3.30 |
| Diluted EPS (NT$) | 3.50 | 3.23 |
| Total Liabilities (NT$ thousand) | 14,866,606 | 15,138,993 |
| Total Equity (NT$ thousand) | 18,393,336 | 18,120,949 |
The filing does not provide specific data on revenue, operating cash flow, gross margins, or debt maturity schedules.
Material Changes and Accounting Differences
The variance between the two reporting standards is driven by two primary factors:
- Tax Recognition Timing: Differences in the timing of recognizing the additional 10% income tax on unappropriated retained earnings.
- Equity Method Investments: Divergent accounting treatment for investments accounted for using the equity method, specifically regarding changes in shareholding when the Company did not participate in an investee's capital increase.
Consequently, net profit and equity are reported higher under Taiwan IFRSs, while liabilities are reported higher under IFRSs.
Guidance, Risks, and Management Commentary
The filing contains no forward-looking guidance, outlook, or specific management commentary regarding future operations. It notes that the audit report for the SEC filing was issued pursuant to U.S. PCAOB rules, whereas the local filing followed Republic of China auditing standards. No specific risks or contingencies are detailed in this text.
Key Facts for Investor Verification
- Verify the specific impact of the 10% additional income tax on unappropriated retained earnings on future cash flows.
- Review the details of equity method investments to understand the shareholding changes affecting the IFRS reconciliation.
- Confirm the full text of the 2017 Form 20-F for the complete set of IFRS-compliant financial statements.
- Check the Company's Investor Relations website for the detailed reconciliation table referenced in the filing.