Chunghwa Telecom Announces Differences in Consolidated Financial Report Due to Inconsistent Accounting Principles between T-IFRSs and IFRSs for FY2025
Chunghwa Telecom announced differences in its consolidated financial report for FY2025 arising from inconsistent accounting principles between T-IFRSs and IFRSs. The primary difference lies in the estimation of undistributed surplus tax, leading to minor variations in consolidated net profit and assets.
📋 Article Processing Timeline
- 📰 Published: April 15, 2026 at 09:00
- 🔍 Collected: April 16, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: April 19, 2026 at 00:56 (64h 55m after Collected)
1. Date of fact occurrence: 2026/04/15
2. Fiscal year and quarter of financial report: 2025 Fiscal Year
3. Accounting principles adopted for domestic listed securities (Chinese input required):
Prepared in accordance with the "Criteria for Preparation of Financial Reports by Securities Issuers" and International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), Interpretations, and Exposure Drafts approved and effective by the Financial Supervisory Commission (hereinafter referred to as T-IFRSs).
4. Differences in financial information for domestic listed securities and amounts (Chinese input required):
The Group's consolidated net profit calculated according to T-IFRSs for the year 2025 was NT$40,517,100 thousand, with profit attributable to owners of the parent being NT$38,712,404 thousand, and basic earnings per share being NT$4.99. As of December 31, 2025, consolidated total assets were NT$535,871,951 thousand, consolidated total liabilities were NT$135,081,875 thousand, and consolidated total equity was NT$400,790,076 thousand.
5. Accounting principles adopted for overseas issued securities (Chinese input required):
Prepared in accordance with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) (hereinafter referred to as IFRSs).
6. Differences in financial information for overseas issued securities and amounts (Chinese input required):
The Group's consolidated net profit calculated according to IFRSs for the year 2025 was NT$40,491 million, with profit attributable to owners of the parent being NT$38,705 million, and basic earnings per share being NT$4.99. As of December 31, 2025, consolidated total assets were NT$535,680 million, consolidated total liabilities were NT$137,209 million, and consolidated total equity was NT$398,471 million.
7. Reason for differences (Chinese input required):
The main difference in profit and loss items due to the inconsistency between T-IFRSs and IFRSs is the estimation of undistributed surplus tax. Additionally, during the company's state-owned period, according to government regulations at the time, income from various business equipment and setup fees, as well as public phone card revenue, was recognized as revenue upon receipt of cash. At the time of corporatization, the company's assets and liabilities required for operations were invested at their book value according to government administrative orders. The portion exceeding the net worth was fully recorded as additional paid-in capital. According to T-IFRSs, no adjustment is required, and it remains recorded as additional paid-in capital. According to IFRSs, such installation fee income should be retroactively deferred and recognized as revenue over the service provision period, which should be considered retained earnings. Therefore, the additional paid-in capital recorded at corporatization should be reduced, and retained earnings should be increased. This adjustment does not affect the total equity.
8. Other matters to be noted:
Profit distribution and shareholder equity matters are based on financial statements prepared according to T-IFRSs.
2. Fiscal year and quarter of financial report: 2025 Fiscal Year
3. Accounting principles adopted for domestic listed securities (Chinese input required):
Prepared in accordance with the "Criteria for Preparation of Financial Reports by Securities Issuers" and International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), Interpretations, and Exposure Drafts approved and effective by the Financial Supervisory Commission (hereinafter referred to as T-IFRSs).
4. Differences in financial information for domestic listed securities and amounts (Chinese input required):
The Group's consolidated net profit calculated according to T-IFRSs for the year 2025 was NT$40,517,100 thousand, with profit attributable to owners of the parent being NT$38,712,404 thousand, and basic earnings per share being NT$4.99. As of December 31, 2025, consolidated total assets were NT$535,871,951 thousand, consolidated total liabilities were NT$135,081,875 thousand, and consolidated total equity was NT$400,790,076 thousand.
5. Accounting principles adopted for overseas issued securities (Chinese input required):
Prepared in accordance with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) (hereinafter referred to as IFRSs).
6. Differences in financial information for overseas issued securities and amounts (Chinese input required):
The Group's consolidated net profit calculated according to IFRSs for the year 2025 was NT$40,491 million, with profit attributable to owners of the parent being NT$38,705 million, and basic earnings per share being NT$4.99. As of December 31, 2025, consolidated total assets were NT$535,680 million, consolidated total liabilities were NT$137,209 million, and consolidated total equity was NT$398,471 million.
7. Reason for differences (Chinese input required):
The main difference in profit and loss items due to the inconsistency between T-IFRSs and IFRSs is the estimation of undistributed surplus tax. Additionally, during the company's state-owned period, according to government regulations at the time, income from various business equipment and setup fees, as well as public phone card revenue, was recognized as revenue upon receipt of cash. At the time of corporatization, the company's assets and liabilities required for operations were invested at their book value according to government administrative orders. The portion exceeding the net worth was fully recorded as additional paid-in capital. According to T-IFRSs, no adjustment is required, and it remains recorded as additional paid-in capital. According to IFRSs, such installation fee income should be retroactively deferred and recognized as revenue over the service provision period, which should be considered retained earnings. Therefore, the additional paid-in capital recorded at corporatization should be reduced, and retained earnings should be increased. This adjustment does not affect the total equity.
8. Other matters to be noted:
Profit distribution and shareholder equity matters are based on financial statements prepared according to T-IFRSs.