F-56 The foreign exchange rate fluctuations would result in the Company’s foreign-currency-dominated  assets and liabilities, outstanding currency swap contracts, forward exchange contracts exposed to rate  risk.  The financial instruments categorized as available-for-sale financial assets are mainly listed stocks,  open-end mutual funds and corporate bonds. Therefore, the market risk is the fluctuations of market  price. In order to manage this risk, the Company would assess the risk before investing; therefore, no  material market risk is anticipated.  The Company has sufficient operating capital to meet cash needs upon settlement of derivative  financial instruments. Therefore, the liquidation risk is low.  Credit risk represents the potential loss that would be incurred by the Company if the counter-parties  or third-parties breached contracts. Financial instruments with positive fair values at the balance sheet  date are evaluated for credit risk. The counter-parties or third-parties of the aforementioned financial  instruments are reputable financial institutions and corporations. Management does not expect the  Company’s exposure to default by those parties to be material.  3) Liquidation risk  2) Credit risk  1) Market risk  c. Fair values of financial assets and liabilities using quoted market prices or valuation techniques were as  follows:  Amount Based on  Quoted Market Price Amount Determined  Using Valuation  Techniques December 31 December 31 2009 2010 2009 2010 NT$ NT$ NT$ NT$ (In Millions) Assets Financial assets at fair value through profit or loss $  34  $  43  $  7  $  34  Available-for-sale financial assets 17,434  2,089  103  102  Liabilities Financial liabilities at fair value through profit or loss —  —  1 — d. Information about financial risks  4) The fair value of long-term loans (including current portion) is discounted based on projected cash  flow which approximate their carrying amounts. The projected cash flows were discounted using the  interest rate of similar long-term loans. 