Mega Bank Annual Report 2017

58 Mega Bank -58- 2016 Land and land improvements Buildings and auxiliary equipment Transportation and communication equipment Computers and peripheral equipment Miscellaneous equipment Total Cost (In NT Thousand Dollars) Balance at January 1, 2016 $ 9,282,673 $ 10,122,738 $ 155,890 $ 3,172,897 $ 1,525,297 $ 24,259,495 Additions for the year 10,635 123,635 6,196 278,546 47,845 466,857 Disposals for the year - ( 67,240 ) ( 12,653 ) ( 295,920 ) ( 38,178 ) ( 413,991 ) Transfers in the current period - ( 57 ) - ( 30 ) 57 ( 30 ) Exchange adjustments ( 1,367 ) ( 41,453 ) ( 1,817 ) ( 8,164 ) 1,443 ( 51,358 ) Balance at December 31, 2016 9,291,941 10,137,623 147,616 3,147,329 1,536,464 24,260,973 Accumulated depreciation Balance at January 1, 2016 - ( 5,714,212 ) ( 124,408 ) ( 2,681,254 ) ( 1,303,474 ) ( 9,823,348 ) Depreciation for the year - ( 201,572 ) ( 10,710 ) ( 205,618 ) ( 63,901 ) ( 481,801 ) Disposals for the year - 67,240 12,019 295,805 38,017 413,081 Transfers in the current period - 57 7 ( 7 ) ( 57 ) - Exchange adjustments - 28,950 1,299 5,311 ( 2,087 ) 33,473 Balance at December 31, 2016 - ( 5,819,537 ) ( 121,793 ) ( 2,585,763 ) ( 1,331,502 ) ( 9,858,595 ) Accumulated impairment Balance at January 1, 2016 ( 142,596 ) ( 14,961 ) - - - ( 157,557 ) Gain on reversal of impairment loss 64,810 12,803 - - - 77,613 Balance at December 31, 2016 ( 77,786 ) ( 2,158 ) - - - ( 79,944 ) Net book value of December 31, 2016 $ 9,214,155 $ 4,315,928 $ 25,823 $ 561,566 $ 204,962 $ 14,322,434 (11) Investment property, net December 31, 2017 Cost Accumulated Depreciation Accumulated Impairment Net Book Value (In NT Thousand Dollars) Land and land improvements $ 574,770 $ - $ - $ 574,770 Buildings and auxiliary equipment 21,550 ( 11,674 ) - 9,876 $ 596,320 ( $ 11,674 ) $ - $ 584,646 December 31, 2017 Cost Accumulated Depreciation Accumulated Impairment Net Book Value (In US Thousand Dollars) Land and land improvements $ 19,386 $ - $ - $ 19,386 Buildings and auxiliary equipment 727 ( 394 ) - 333 $ 20,113 ( $ 394 ) $ - $ 19,719 December 31, 2016 Cost Accumulated Depreciation Accumulated Impairment Net Book Value (In NT Thousand Dollars) Land and land improvements $ 764,955 $ - $ - $ 764,955 Buildings and auxiliary equipment 174,134 ( 74,050 ) - 100,084 $ 939,089 ( $ 74,050 ) $ - $ 865,039 A. The fair value of the investment property held by the Bank and subsidiaries as of December 31, 2017 and 2016 was NT$2,940,545 thousand and NT$3,280,811 thousand, respectively according to the result of valuation by an independent valuation expert using the comparison method and land development analysis approach, which is considered to be Level 2 within the fair value hierarchy. B. Rental income from the lease of the investment property for the years ended December 31, 2017 and 2016 was NT$16,985 thousand and NT$17,613 thousand, respectively; direct operating expenses incident to current rental income from investment property was NT$10,589 thousand and NT$11,969 thousand, respectively. C. For the rental revenue from the lease of the investment property among related parties, please refer to Note 11(3). D. None of the Bank’s and its subsidiaries’ investment property as at Decemb er 31, 2017 and 2016 have been pledged or provided as guarantees.