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Mega ICBC
-84-
(6)
Transfer of financial assets
Transferred financial assets that are not derecognised in their entirety
In the Bank’s and its subsidiaries’ ordinary course of transactions, transferred financial assets that are not derecognised in their entirety are
primarily debt securities provided as liens for the counterparty through repurchase agreements. Because such transactions are virtually secured
loans and reflect a liability where the Bank and its subsidiaries are obligated to repurchase transferred assets with a fixed price in the future,
for such transactions, the Bank and its subsidiaries may not use, sell or pledge such transferred financial assets within the effective period of
the transactions; however, the Bank and its subsidiaries still bears the interest rate risk and credit risk, thus they are not derecognised in their
entirety.
Information on financial assets and related financial liabilities at December 31, 2015 that were not derecognised in their entirety: None.
(7)
Offsetting financial assets and financial liabilities
The Bank and its subsidiaries have engaged in financial instrument transactions that apply the offsetting requirements in Paragraph 42 of IAS
32 as endorsed by the FSC. Financial assets and financial liabilities related to these transactions are reported at net amount on the balance
sheet.
The Bank and its subsidiaries have also engaged in offsetting terms that do not conform to the IFRSs. However, they have entered into
enforceable master netting arrangements or similar agreements with counterparties. For example: global master repurchase agreements or
similar repurchase or reverse repurchase agreements. When the above-mentioned enforceable master netting arrangements or similar
agreements are elected by both parties to be settled by net amount, settlements may be made by using the net amount after the offsetting of
financial assets and financial liabilities. Conversely if no such arrangements are made, settlements are made using the gross amount. However,
upon the event of a default of a party, the counterparty may choose settle by net amount.
The following table lists information related to the above-mentioned offsetting of financial assets and financial liabilities.
December 31, 2015
Financial assets that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements
UNIT
：
In NT Thousand Dollars
Description
Gross amounts
of recognised
financial assets
(a)
Gross amounts of recognised
financial liabilities offset in
the balance sheet
(b)
Net amounts of financial
assets presented in the
balance sheet
(c)=(a)-(b)
Not offset in the balance sheet(d)
Net amount
(e)=(c)-(d)
Financial
instruments
(Note)
Cash collateral
received
Derivative instruments $
4,857,594 $
- $
4,857,594 $
616,636 $
1,441,783 $
2,799,175
Financial liabilities that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements
Description
Gross amounts
of recognised
financial
liabilities
(a)
Gross amounts of recognised
financial assets offset in the
balance sheet
(b)
Net amounts of financial
liabilities presented in
the balance sheet
(c)=(a)-(b)
Not offset in the balance sheet(d)
Net amount
(e)=(c)-(d)
Financial
instruments
(Note)
Cash collateral
received
Derivative instruments $
4,757,866 $
- $
4,757,866 $
616,636 $
11,634 $ 4,129,596
December 31, 2015
Financial assets that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements
UNIT
：
In US Thousand Dollars
Description
Gross amounts
of recognised
financial assets
(a)
Gross amounts of recognised
financial liabilities offset in
the balance sheet
(b)
Net amounts of financial
assets presented in the
balance sheet
(c)=(a)-(b)
Not offset in the balance sheet(d)
Net amount
(e)=(c)-(d)
Financial
instruments
(Note)
Cash collateral
received
Derivative instruments $
147,701 $
-
$
147,701 $
18,750 $
43,839 $
85,112
Financial liabilities that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements
Description
Gross amounts
of recognised
financial
liabilities
(a)
Gross amounts of recognised
financial assets offset in the
balance sheet
(b)
Net amounts of financial
liabilities presented in
the balance sheet
(c)=(a)-(b)
Not offset in the balance sheet(d)
Net amount
(e)=(c)-(d)
Financial
instruments
(Note)
Cash collateral
received
Derivative instruments $
144,669 $
- $
144,669 $
18,750 $
354 $
125,565
December 31, 2014
Financial assets that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements
UNIT
：
In NT Thousand Dollars
Description
Gross amounts
of recognised
financial assets
(a)
Gross amounts of recognised
financial liabilities offset in
the balance sheet
(b)
Net amounts of financial
assets presented in the
balance sheet
(c)=(a)-(b)
Not offset in the balance sheet(d)
Net amount
(e)=(c)-(d)
Financial
instruments
(Note)
Cash collateral
received
Derivative instruments $
5,066,261 $
- $
5,066,261 $
649,138 $
1,052,093 $ 3,365,030