Chunghwa Telecom Announces Differences in Consolidated Financial Report for Q1 2026 Due to Application of T-IFRSs and IFRSs
Chunghwa Telecom announced its Q1 2026 consolidated financial report, highlighting differences between Taiwan's T-IFRSs and international IFRSs, primarily due to tax estimation and historical accounting practices. Under T-IFRSs, net profit was NT$10.61B (EPS NT$1.30), while under IFRSs, it was NT$10.12B (EPS NT$1.24).
📋 Article Processing Timeline
- 📰 Published: May 8, 2026 at 09:00
- 🔍 Collected: May 12, 2026 at 08:00 (95h 0m after Published)
- 🤖 AI Analyzed: May 12, 2026 at 21:12 (13h 12m after Collected)
1. Date of Event: 115/05/08
2. Fiscal Year and Quarter of Financial Report: Q1 2026
3. Accounting Principles Adopted for Listed Securities in the Country (Please enter in Chinese):
Prepared in accordance with the "Interim Financial Reporting" (IAS 34) recognized and issued by the Financial Supervisory Commission (hereinafter referred to as T-IFRSs).
4. Differences in Financial Information for Listed Securities in the Country and Amounts (Please enter in Chinese):
The consolidated net profit of the Company and its subsidiaries (hereinafter referred to as the "Group") for the first quarter of 2026, calculated in accordance with T-IFRSs, was NT$10,607,722 thousand. The net profit attributable to the parent company was NT$10,109,931 thousand, and the basic earnings per share was NT$1.30. As of March 31, 2026, the consolidated total assets were NT$547,813,634 thousand, consolidated total liabilities were NT$136,380,954 thousand, and consolidated total equity was NT$411,432,680 thousand.
5. Accounting Principles Adopted for Offshore Securities Offerings (Please enter in Chinese):
Prepared in accordance with "Interim Financial Reporting" (IAS 34) issued by the International Accounting Standards Board (IASB) (hereinafter referred to as IFRSs).
6. Differences in Financial Information for Offshore Securities Offerings and Amounts (Please enter in Chinese):
The Group's consolidated net profit for the first quarter of 2026, calculated in accordance with IFRSs, was NT$10,122 million. The net profit attributable to the parent company was NT$9,611 million, and the basic earnings per share was NT$1.24. As of March 31, 2026, the consolidated total assets were NT$547,618 million, consolidated total liabilities were NT$138,991 million, and consolidated total equity was NT$408,627 million.
7. Reason for Differences (Please enter in Chinese):
The main differences in profit and loss items due to the application of inconsistent accounting principles between T-IFRSs and IFRSs stem from the estimation of undistributed surplus tax. Additionally, during the Company's state-owned period, in accordance with government regulations at the time, revenues from various business installation and setup fees and public telephone card income were recognized as revenue upon receipt of cash. When the Company was corporatized, in accordance with government administrative orders, the assets and liabilities required for the Company's operations were invested at their then-book value. The portion of net worth exceeding the share capital was all recorded as capital surplus. According to T-IFRSs, no adjustment is required, and it remains recorded as capital surplus. According to IFRSs, these installation fees, etc., should be retrospectively deferred and recognized as revenue over the service period, belonging to retained earnings. Therefore, the capital surplus recorded at the time of corporatization should be reduced, and retained earnings should be increased. This adjustment does not affect the total equity.
8. Other Matters to be Notified:
The Company's profit distribution and shareholder equity matters are based on financial statements prepared in accordance with T-IFRSs.
2. Fiscal Year and Quarter of Financial Report: Q1 2026
3. Accounting Principles Adopted for Listed Securities in the Country (Please enter in Chinese):
Prepared in accordance with the "Interim Financial Reporting" (IAS 34) recognized and issued by the Financial Supervisory Commission (hereinafter referred to as T-IFRSs).
4. Differences in Financial Information for Listed Securities in the Country and Amounts (Please enter in Chinese):
The consolidated net profit of the Company and its subsidiaries (hereinafter referred to as the "Group") for the first quarter of 2026, calculated in accordance with T-IFRSs, was NT$10,607,722 thousand. The net profit attributable to the parent company was NT$10,109,931 thousand, and the basic earnings per share was NT$1.30. As of March 31, 2026, the consolidated total assets were NT$547,813,634 thousand, consolidated total liabilities were NT$136,380,954 thousand, and consolidated total equity was NT$411,432,680 thousand.
5. Accounting Principles Adopted for Offshore Securities Offerings (Please enter in Chinese):
Prepared in accordance with "Interim Financial Reporting" (IAS 34) issued by the International Accounting Standards Board (IASB) (hereinafter referred to as IFRSs).
6. Differences in Financial Information for Offshore Securities Offerings and Amounts (Please enter in Chinese):
The Group's consolidated net profit for the first quarter of 2026, calculated in accordance with IFRSs, was NT$10,122 million. The net profit attributable to the parent company was NT$9,611 million, and the basic earnings per share was NT$1.24. As of March 31, 2026, the consolidated total assets were NT$547,618 million, consolidated total liabilities were NT$138,991 million, and consolidated total equity was NT$408,627 million.
7. Reason for Differences (Please enter in Chinese):
The main differences in profit and loss items due to the application of inconsistent accounting principles between T-IFRSs and IFRSs stem from the estimation of undistributed surplus tax. Additionally, during the Company's state-owned period, in accordance with government regulations at the time, revenues from various business installation and setup fees and public telephone card income were recognized as revenue upon receipt of cash. When the Company was corporatized, in accordance with government administrative orders, the assets and liabilities required for the Company's operations were invested at their then-book value. The portion of net worth exceeding the share capital was all recorded as capital surplus. According to T-IFRSs, no adjustment is required, and it remains recorded as capital surplus. According to IFRSs, these installation fees, etc., should be retrospectively deferred and recognized as revenue over the service period, belonging to retained earnings. Therefore, the capital surplus recorded at the time of corporatization should be reduced, and retained earnings should be increased. This adjustment does not affect the total equity.
8. Other Matters to be Notified:
The Company's profit distribution and shareholder equity matters are based on financial statements prepared in accordance with T-IFRSs.