

60
Mega ICBC
-60-
C.
Movements of financial instruments classified into Level 3 of fair value are as follows:
(A)
Movements of financial assets classified into Level 3 of fair value are as follows:
For the year ended December 31, 2015
(In NT Thousand Dollars)
Items
Beginning
balance
Gain and loss on valuation
Addition
Reduction
Ending balance
Gain and loss Other comprehensive
income
Purchased
or issued
Transferred
to Level 3
Sold, disposed
or settled
Transferred
from Level 3
Financial assets at fair
value through profit
or loss
$
214,281 $
106,135 $
- $
14,514 $
- ( $
472 ) ($ 334,458) $
-
For the year ended December 31, 2015
(In US Thousand Dollars)
Items
Beginning
balance
Gain and loss on valuation
Addition
Reduction
Ending balance
Gain and loss Other comprehensive
income
Purchased
or issued
Transferred
to Level 3
Sold, disposed
or settled
Transferred
from Level 3
Financial assets at fair
value through profit
or loss
$
6,515 $
3,227 $
- $
441 $
- ( $
14 ) ($
10,169 ) $
-
For the year ended December 31, 2014
(In NT Thousand Dollars)
Items
Beginning
balance
Gain and loss on valuation
Addition
Reduction
Ending balance
Gain and loss Other comprehensive
income
Purchased
or issued
Transferred
to Level 3
Sold, disposed
or settled
Transferred
from Level 3
Financial assets at fair
value through profit
or loss
$
700,069 ($
206,346) $
- $
376,055 $
- ( $ 242,019 ) ($ 413,478 ) $
214,281
(B)
Movements of financial liabilities classified into Level 3 of fair value are as follows:
For the year ended December 31, 2015
(In NT Thousand Dollars)
Items
Beginning
balance
Gain and loss on valuation
Addition
Reduction
Ending balance
Gain and loss Other comprehensive
income
Purchased
or issued
Transferred
to Level 3
Sold, disposed
or settled
Transferred
from Level 3
Financial liabilities at
fair value through
profit or loss
($
214,281) ($
106,135) $
- ($
14,514) $
- $
472 $
334,458 $
-
For the year ended December 31, 2015
(In US Thousand Dollars)
Items
Beginning
balance
Gain and loss on valuation
Addition
Reduction
Ending balance
Gain and loss Other comprehensive
income
Purchased
or issued
Transferred
to Level 3
Sold, disposed
or settled
Transferred
from Level 3
Financial liabilities at
fair value through
profit or loss
($
6,515) ($
3,227) $
- ($
441) $
- $
4 $
10,169 $
-
For the year ended December 31, 2014
(In NT Thousand Dollars)
Items
Beginning
balance
Gain and loss on valuation
Addition
Reduction
Ending balance
Gain and loss Other comprehensive
income
Purchased
or issued
Transferred
to Level 3
Sold, disposed
or settled
Transferred
from Level 3
Financial liabilities at
fair value through
profit or loss
($ 1,166,222) $
210,911 $
- ($
617,779) $
- $
449,66 $
909,163 ($ 214,281 )
Due to the adoption of observable inputs rather than quoted price from counterparties, derivative financial instruments were transferred from
level 3 to level 2.
D.
Transfer between Level 1 and Level 2
The Bank’s held 103-13 and 103-15 Category A Central Government Construction Bonds at December 31, 2015 had an amount of NT$105,180
thousand and NT$153,912 thousand, respectively. For the current period they were not indicative active bonds, thus they were transferred from
Level 1 to Level 2.
E.
Fair value measurement to Level 3, and the sensitivity analysis of the substitutable appropriate assumption made on fair value.
The fair value measurement that the Bank and its subsidiaries made to the financial instruments is deemed reasonable; however, different valuation
models or inputs could results in different valuation results. Specifically, if the valuation input of financial instrument classified in Level 3 moves
upward or downward by 10%, the effects on gain and loss in the period or the effects on other comprehensive income are as follows:
The Bank and its subsidiaries did not hold any Level 3 financial instruments at December 31, 2015
December 31, 2014
Effect of changes in fair value in the current profit and loss
NT$
Favorable change
Unfarorable change
Derivative financial assets and liabilities
$
-
$
-
Favorable and unfavorable movements of the Bank and its subsidiaries refer to the fluctuation of fair value, and the fair value is calculated according
to unobservable parameters to different extent. If the fair value of a financial instrument is affected by one or more inputs, the correlation and
variance of input are not put into consideration in the above table.