57 / 120
54
Mega ICBC
-54-
After the Bank’s assessment, the above-mentioned financial assets have provisioned impairment losses due to objective evidences indicating
impairment. For the year ended December 31, 2015, relatively significant impairments were for Alpha Imaging Technology Corp. (accounted
for as available-for-sale), NexPower Technology Corp. and TMC Corp. (the latter two were accounted for as those measured at cost), which
provisioned impairment amounts of NT$232,517 thousand, NT$77,700 thousand and NT$35,796 thousand, respectively.
(30)
Other revenue other than interest income
For the years ended December 31,
2015
2014
NT$
US$
NT$
Gain on sales of property and equipment
$
2,893 $
88 $
1,264
Loss on retirement of assets
(
541 ) (
16 ) (
79 )
Net income from rent
184,318
5,604
194,690
Other revenue
147,451
4,483
305,895
Total
$
334,121 $
10,159 $
501,770
(31)
Employee benefits expenses
For the years ended December 31,
2015
2014
NT$
US$
NT$
Payroll expense
$
9,954,640 $
302,683 $
9,356,196
Staff insurance
613,571
18,656
612,190
Pension
592,724
18,023
630,672
Other staff expenses
2,110,525
64,173
1,839,204
Total
$
$13,271,460 $
403,535 $
12,438,262
A.
The current year's earnings, if any, shall first be used to pay all taxes and offset prior year's operating loss, and the remaining amount
should then be set aside as legal reserve and special reserve in accordance with provisions under the applicable laws and regulations.
2.4% of the remaining earnings (including reversible special reserve) are then distributed as bonuses to employees.
However, in accordance with the Company Act amended in May 20, 2015, the Bank shall distribute employee compensation, based on
the distributable profit of the current year, in a fixed amount or a ratio of profits. If the Bank has accumulated deficit, earnings should be
channeled to cover losses. The Bank may, by a resolution adopted by a majority vote at a meeting of the Board of Directors attended by
two-thirds of the total number of directors, have the profit distributable as employees' compensation distributed in the form of shares or
in cash; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting. Qualification requirements
of employees, including the employees of subsidiaries of the Bank meeting certain specific requirements, entitled to receive
aforementioned stock or cash may be specified in the Articles of Incorporation. The Board of Directors of the Bank has approved the
amended Articles of Incorporation of the Bank on February 5, 2016. According to the amended articles, a ratio of distributable profit of
the current year, after covering accumulated losses, shall be distributed as employees’ compensation. In case there are earnings at the end
of each fiscal year, the employees’ compensation of the Bank shall be 1.7% of the amount of net profit before income tax and employees’
compensation, which , in any event, shall not be less than 2.4% of the aggregate amount of the balance of earnings after taxes deduct the
amount of the legal reserve and special reserve (or plus the reversible special reserve in accordance with relevant laws and regulations)
at the end of each fiscal year, provided that the accumulated losses of the Bank in previous fiscal years have been covered. The amended
articles will be resolved in the shareholders’ meeting in 2016.
B.
For the years ended December 31, 2015 and 2014, employees’ compensation (bonus) was accrued at NT$523,000 thousand and
NT$436,084 thousand, respectively. The above-mentioned amounts were recognised in salary expenses.
For the year ended December 31, 2015, employees’ compensation was estimated and accrued based on 1.7% of current earnings. The
employees’ compensation resolved by the Board of Directors was NT$523,141 thousand, which resulted in a difference of NT$141
thousand as compared to the recognised amounts in the 2015 financial statements. The difference is accounted for as a change in estimate
and has been adjusted in the profit or loss of 2016. The above-mentioned employees’ compensation will be distributed in the form of cash.
For the year ended December 31, 2014, employees’ bonus was estimated and accrued based on the current year income after taxes and
the multiplier stipulated in the Articles of Incorporation, after taking into account other factors such as legal reserve. The difference
between employees’ bonus as resolved by the stockholders at the stockholders’ meeting and the amount recognised in the 2014 financial
statements was NT$275 thousand, which is accounted for as a change in estimate and has been adjusted in the profit or loss of 2015.
Information about employees’ compensation (bonus) of the Bank as resolved by the Board of Directors and the shareholders at the
shareholders’ meeting will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.
(32)
Depreciation and amortization
For the years ended December 31,
2015
2014
NT$
US$
NT$
Depreciation
$
483,745 $
14,709 $
508,590
Amortization
3,922
120
2,331
Total
$
487,667 $
14,829 $
510,921