December 31
2015 2014
The expected contributions to the plan for the next year $ 6,544 $ 7,933 The average duration of the defined benefit obligation 11 years 12 years
2) Special reserve, if needed; and
3) The remaining is appropriated as follows:
a) Bonuses to directors and supervisors - 4%;
b) Employees - 2% to 4%;
c) The manner of distributing the dividend to stockholders should be determined by the stockholders in their meeting on the basis of operating results.
The dividend distribution should be in accordance with future capital budget plan, the operating policy on capital demand and the financial structure under conservative consideration. Basically, cash dividend is not lower than 20% of the total dividend and the final distribution is determined in the meeting of stockholders.
In accordance with the amendments to the Company Act in May 2015, the recipients of dividends and bonuses are limited to shareholders and do not include employees. The consequential amendments to the Company’s Articles of Incorporation had been proposed by the Company’s board of directors on February 24, 2016 and are subject to the resolution of the shareholders in their meeting to be held on June 3, 2016. For information about the accrual basis of the employees’ compensation and remuneration to directors and supervisors and the actual appropriations, please refer to 39.
Under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and the directive titled
“Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs”, the Company should appropriate or reverse to a special reserve. When the deduction of other equity was reversed, the reversed part could be distributed in cash.
Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Bank’s capital surplus. Legal reserve may be used to offset deficit. If the Bank has no deficit and the legal reserve has exceeded 25% of the Bank’s capital surplus, the excess may be transferred to capital or distributed in cash.
Under the Company Law, legal reserve shall be appropriated until it has reached the Bank’s capital surplus. This reserve may be used to offset deficit. When the Company has no loss and the legal reserve has exceeded 15% of the Bank’s capital surplus, the excess may be transferred to capital or distributed in cash.
Except for non-ROC resident shareholders, all shareholders receiving the dividends are allowed a tax credit equal to their proportionate share of the income tax paid by the Bank.
The appropriations of earnings for 2014 and 2013 had been approved in shareholders’ meetings on June 2, 2015 and June 6, 2014, respectively. The appropriations and dividends per share were as follows:
2014 2013
Dividend Dividend Appropriation
of Earnings
Per Share (NT$)
Appropriation of Earnings
Per Share (NT$)
Legal reserve $ 528,947 $ 226,452
Special reserve 279,154 51,840
Cash dividend - common stock 955,055 $0.40 476,546 $0.20
Bonuses to employees and remuneration to directors and supervisors for 2015 proposed in the shareholders’ meetings on March 25, 2016 were as follows:
Appropriation of Earnings
Dividends Per Share (NT$)
Legal reserve $ 510,102
Special reserve (5,014)
Cash dividend - common stock 1,195,253 $0.50
Bonus to employees and remuneration to directors and supervisors will be approved in shareholders’
meeting on June 3, 2016.
d. Other equity items
1) Exchange differences on translating the financial statements of foreign operations
For the Year Ended December 31
2015 2014
Balance at January 1 $ 247,842 $ (9,412)
Exchange differences arising on translating the financial
statements of foreign operations 189,136 295,585
Income tax related to gains arising on translating the financial
statements of foreign operations (30,938) (38,331)
Balance at December 31 $ 406,040 $ 247,842
2) Unrealized gain (loss) on available-for-sale financial assets
For the Year Ended December 31
2015 2014
Balance at January 1 $ 565,041 $ 169,548
Unrealized gain arising on revaluation of available-for-sale
financial assets 188,728 463,580
Cumulative gain reclassified to profit or loss on sale of
available-for-sale financial assets (160,257) (201,076) Cumulative loss reclassified to profit or loss on impairment
of available-for-sale financial assets 58,449 101,286 Actual disposal of interest in subsidiaries - (211) Share of unrealized gain on revaluation of available-for-sale
financial assets of associates accounted for using the
equity method (27,385) 31,914
Balance at December 31 $ 624,576 $ 565,041
d. Non-controlling interests
2015 2014
Balance at January 1 $ 16,311,405 $ 16,153,619
Attribute to non-controlling interests
Share of profit for the year 1,194,684 985,103
Exchange differences arising on translation of foreign entities 17,270 20,766 Unrealized gains and losses on available-for-sale financial
assets 206,042 50,636
Actuarial gains (loss) on defined benefit plans (8,976) (2,588) Disposal of partial interest in CBF (Note 44) - 20,197
Dissolved of TFITT - (30,372)
Subsidiaries dividends paid (692,625) (673,385)
Subsidiaries refund capital (90,015) (212,571)
Disposal of subsidiaries (334,628) -
Ending balance $ 16,603,157 $ 16,311,405
e. Treasury stock
On June 26, 2013, the Bank’s board of directors resolved to buy-back outstanding shares at $5.5-$8 per share from emerging market in order to transfer the shares to employees. The Bank bought back 7,774 thousand shares in the amount of $50,620 thousand. The Bank had transferred 4,905 thousand shares to employees in March 2015. In accordance with IFRS 2 “Share based payment”, the Bank recognized employee benefits expense in the amount of $1,864 thousand and capital surplus - stock options in the amount of $1,773 thousand (including related taxes) on grant day, and recognized capital surplus - treasury stock transactions on the settlement day. Under the Securities and Exchange Act, the Bank shall neither pledge treasury stock nor exercise shareholders’ rights on these shares, such as rights to dividends and to vote.
Shares Transferred to
Employees (In Thousands of
Shares)
Number of shares at January 1, 2014 7,774
Decrease during the year -
Number of shares at December 31, 2014 7,774
Number of shares at January 1, 2015 7,774
Decrease during the year 4,905
Number of shares at December 31, 2015 2,869