Mega Bank Annual Report 2017

30 Mega Bank -30- Report of Independent Accountants To the Board of Directors and Shareholders of Mega International Commercial Bank Co., Ltd. Opinion We have audited the accompanying consolidated balance sheets of Mega International Commercial Bank Co., Ltd. (the “Bank”) and its subsidiaries as at December 31, 2017 and 2016, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Bank and its subsidiaries as at December 31, 2017 and 2016, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the “Regulations Gove rning the Preparation of Financial Reports by Public Banks” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission. Basis for opinion We conducted our audits in accordance with the “Rules Governing the Audit of Financial Statements of Financial Institution by Certified Public Accountants” and generally accepted auditing standards in the Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Bank and its subsidiaries in accordance with the Code of Profes sional Ethics for Certified Public Accountants in the Republic of China (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters. The Bank and its subsidiaries’ key audit matters for the year ended December 31, 201 7 are addressed as follows: Impairment assessment of bills discounted and loans Description For the accounting policy for the impairment assessment of bills discounted and loans, please refer to Note 4(9) of the consolidated financial statements; for critical accounting judgments, estimates, and key sources of assumption uncertainty of impairment assessment of bills discounted and loans, please refer to Note 5(2) of the consolidated financial statements; for the details of bills discounted and loans, please refer to Note 6(5) of the consolidated financial statements. Gross bills discounted and loans and allowance for bad debts as at December 31, 2017, was $1,790,516,261 thousand and $28,355,505 thousand, respectively. 屯婈倗⎰㚫妰ⷓḳ⊁㇨ PricewaterhouseCoopers, Taiwan 11012 冢⊿ⶪᾉ佑⋨➢昮嶗ᶨ㭝 333 嘇 27 㦻 27F, No.333, Sec.1, Keelung Rd., Xinyi Dist., Taipei 11012, Taiwan T: +886 (2) 2729 6666 , F: +886 (2) 2729 6686, www.pwc.tw