Mega Bank Annual Report 2017

100 Mega Bank 211! (6) Offsetting financial assets and financial liabilities The Bank and 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 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, 2017 Financial assets that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements UNIT Ǻ In NT Thousand Dollars Description Gross amounts of recognized financial assets (a) Gross amounts of recognized 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 $ 3,264,346 $ - $ 3,264,346 $ 1,243,274 $ 66,650 $ 1,954,422 Financial liabilities that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements Description Gross amounts of recognized financial liabilities (a) Gross amounts of recognized 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 pledged Derivative instruments $ 1,855,204 $ - $ 1,855,204 $ 365,186 $ 13,556 $ 1,476,462 December 31, 2017 ! Financial assets that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements UNIT Ǻ In US Thousand Dollars Description Gross amounts of recognized financial assets (a) Gross amounts of recognized 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 $ 110,104 $ - $ 110,104 $ 41,935 $ 2,248 $ 65,921 Financial liabilities that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements Description Gross amounts of recognized financial liabilities (a) Gross amounts of recognized 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 pledged Derivative instruments $ 62,574 $ - $ 62,574 $ 12,317 $ 457 $ 49,800 December 31, 2016 Financial assets that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements UNIT Ǻ In NT Thousand Dollars Description Gross amounts of recognized financial assets (a) Gross amounts of recognized 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 $ 3,783,124 $ - $ 3,783,124 $ 1,181,638 $ 866,726 $ 1,734,760 Financial liabilities that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements Description Gross amounts of recognized financial liabilities (a) Gross amounts of recognized 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 pledged Derivative instruments $ 3,217,540 $ - $ 3,217,540 $ 1,140,092 $ 9,250 $ 2,068,198 (Note) Including net settlement master netting arrangements and non-cash collaterals.