SEQ_NO | 2 | Date of announcement | 2011/01/31 | Time of announcement | 19:00:39 |
Subject |
Far Eastern New Century Corporation (FENC) announces its change of depreciation methods and consequently, its accounting estimates. |
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Date of events | 2011/01/31 | To which item it meets | article 2 paragraph 49 | ||
Statement |
1.Date of occurrence of the event:2011/01/31
2.Company name:Far Eastern New Century Corporation
3.Relationship to the Company (please enter ”head office” or
”affiliate company”):head office
4.Reciprocal shareholding ratios:Nil
5.Cause of occurrence:
Starting from January 1, 2011, Far Eastern New Century
Corporation (FENC) altered its depreciation method for
fixed assets to “Straight Line Method” from “Fixed
Percentage of Declining Balance Method,” and in the
meantime extended the estimated service lives of the
Company’s fixed assets to 15 years. The alteration is
approved by the Financial Supervisory Commission,
Executive Yuan of R.O.C. on the 27th of January 2011
under Letter No.1000001624.
6.Countermeasures:NA
7.Any other matters that need to be specified:
Subsequent to the alteration, the Company will:
1) in a relatively reasonable way, report the residual
lives of the fixed assets and estimate economic benefits
of such assets would generate in the future; and
2) reconcile the Company’s previous accounting reporting
difference with the industry standard.
The change of accounting estimates, made by the Company,
is in accordance with “Securities Issued Guidelines for
the Preparation of Financial Reports Article.” Deloitte
& Touche will issue review of submission; based on its
review of reason to change, supporting theory, and specific
matters, the alteration is deemed to be reasonable.
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