Fair values are determined as follows: Listed stocks and real estate investment trust fund - at closing prices at  the balance sheet date; open-end mutual funds - at net asset values at the balance sheet date; bonds - quoted  prices provided by the Taiwan GreTai Securities Market; and financial assets and financial liabilities without  quoted prices in an active market - at values determined using valuation techniques.  Cash dividends are recognized in earnings on the ex-dividend date, except for the dividends declared before  acquisitions are treated as a reduction of investment cost. Stock dividends are recorded as an increase in the  number of shares and do not affect investment income. The total number of shares subsequent to the increase  of stock dividends is used for recalculating cost per share. The difference between the initial carrying amount  of a debt instrument and its maturity amount is amortized using the effective interest method, with the  amortized interest recognized in profit and loss.  An impairment loss is recognized when there is objective evidence that the financial asset is impaired. If,  in a subsequent period, the amount of the impairment loss decreases, for equity securities, the previously  recognized impairment loss is reversed to the extent of the decrease and recorded as an adjustment to  stockholders’ equity; for debt securities, the amount of the decrease is recognized in earnings, provided that  the decrease is clearly attributable to an event which occurred after the impairment loss was recognized.  Held-to-maturity financial assets are carried at amortized cost using the effective interest method. Those  financial assets are initially recognized at fair value plus transaction costs that are directly attributable to  the acquisition. Gains and losses are recognized at the time of derecognition, impairment or amortization. A  regular way purchase or sale of financial assets is accounted for using trade date accounting.  If there is objective evidence which indicates that a financial asset is impaired, a loss is recognized. If, in a  subsequent period, the amount of the impairment loss decreases and the decrease is clearly attributable to an  event which occurred after the impairment loss was recognized, the previously recognized impairment loss  is reversed to the extent of the decrease. The reversal may not result in a carrying amount that exceeds the  amortized cost that would have been determined as if no impairment loss had been recognized.  Held-to-maturity Financial Assets Revenue Recognition, Account Receivables and Allowance for Doubtful Receivables  Revenues are recognized when they are realized or realizable and earned. Revenues are realized or realizable  and earned when the Company has persuasive evidence of an arrangement, the goods have been delivered or  the services have been rendered to the customer, the sales price is fixed or determinable and collectibility is  reasonably assured.  Revenue is measured at the fair value of the consideration received or receivable and represents amounts  agreed between the Company and the customers for goods sold in the normal course of business, net of sales  discounts and volume rebates. For trade receivables due within one year from the balance sheet date, as the  nominal value of the consideration to be received approximates its fair value and transactions are frequent,  fair value of the consideration is not determined by discounting all future receipts using an imputed rate of  interest.  Usage revenues from fixed-line services (including local, domestic long distance and international long  distance), cellular services, Internet and data services, and interconnection and call transfer fees from other  telecommunications companies and carriers are billed in arrears and are recognized based upon minutes of  traffic processed when the services are provided in accordance with contract terms.  Other revenues are recognized as follows: (a) one-time subscriber connection fees (on fixed-line services)  are deferred and recognized over the average expected customer service periods, (b) monthly fees (on fixed- line services, wireless and Internet and data services) are accrued every month, and (c) prepaid services (fixed  line, cellular and Internet) are recognized as income based upon actual usage by customers or when the right  to use those services expires.  F-21