P AR T I 87 The following table sets forth a summary of our planned capital expenditures for the year ending December 31, 2012. We expect our total capital expenditures to be approximately NT$ 33.1 billion in 2012. In future periods, we expect our total  capital expenditures to rise due to the launch of new businesses, FTTx network expansion, access bandwidth enhancement, service  platforms, cloud computing and 3G/HSPA/HSPA+ mobile network expansion. We expect to finance these capital expenditures with  our cash flows from operations.  We do not believe that inflation in Taiwan has had a material impact on our results of operations in 2009, 2010 and 2011.  The ARDF of the R.O.C revised statement of Financial Accounting Standards No. 34, “Financial Instruments: Recognition  and Measurement” on December 4, 2008. One of the main revisions is that the impairment of receivables originated by us should  be covered by SFAS No. 34. Accounts receivable are assessed for impairment at the end of each reporting period and considered to  be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the  accounts receivable, the estimated future cash flows of the asset have been affected. The revised SFAS No. 34 should be applied to  financial statements for the fiscal years beginning on and after January 1, 2011. The adoption of the accounting standard did not have  a material effect on our results of operations, financial position and cash flows. On May 14, 2009, the Financial Supervisory Commission announced the “Framework for Adoption of International Financial  Reporting Standards, or IFRSs, by Companies in the R.O.C.” In this framework, starting 2013, companies with shares listed on  the TSE or traded on the Taiwan GreTai Securities Market or Emerging Stock Market should prepare their financial statements in  accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and the International Financial  Reporting Standards, International Accounting Standards, and the Interpretations as well as related guidance translated by the ARDF  and issued by the FSC. Note 35 to our audited consolidated financial statements included elsewhere in this annual report provides a  description of our plans, status of execution and the material differences between the existing accounting policies and the accounting  policies to be adopted under IFRSs.  In September 2009, the FASB issued an accounting standard update which provides guidance on how to separate  consideration in multiple-deliverable arrangements and significantly expands disclosure requirements. The standard establishes a  Recent Accounting Pronouncements  Inflation  For the year ending December 31, 2012 (NT$ in billions, except percentages) Capital Expenditures : Domestic fixed communications business  19.3  58.3 % Mobile communications business  6.9  20.9  Internet business  4.5  13.6  International fixed communications business  1.6  4.8  Others  0.8  2.4 Total capital expenditures  33.1  100.0% For the year ended December 31, 2009 2010 2011 (NT$ in billions, except percentages) Capital Expenditures: Domestic fixed communications  business  15.9 62% 14.2 58% 16.6 62% Mobile communications business  5.0 20 5.3 21 4.3 16 Internet business  2.1 8 1.9 8 3.8 14 International fixed communications  business  1.3 5 1.8 7 1.5 6 Others  1.2 5 1.4 6 0.7 2 Total capital expenditures  25.5 100% 24.6 100% 26.9 100%