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, mobile, Internet and data  services) are accrued every month, and (c) prepaid services (fixed-line, mobile, Internet and data services) are recognized as  income based upon actual usage by customers or when the right to use those services expires.  Where the Company enters into transactions which involve both the provision of air time bundled with products such as 3G  data card and handset, total consideration received from handsets in these arrangements are allocated and measured using  units of accounting within the arrangement based on relative fair values limited to the amount that is not contingent upon the  delivery of other items or services. Where the Company sells products to third party cellular phone stores the Company records the direct sale of the products,  typically handsets, as gross revenue when the Company is the primary obligor in the arrangement and when title is passed and  the products are accepted by the stores. The costs of providing services and operating expenses are recognized as incurred. A hedging relationship qualifies for hedge accounting only if, all of the following conditions are met: (a) at the inception of the  hedge, there is formal documentation of the hedging relationship and the entity's risk management objective and strategy for  undertaking the hedge; (b) the hedge is expected to be highly effective in achieving offsetting changes in fair value attributable  to the hedged risk, consistently with the risk management strategy documented for that particular hedging relationship; (c) the  effectiveness of the hedge can be reliably measured; (d) the hedge is assessed on an ongoing basis and determined actually to  have been highly effective throughout the financial reporting periods for which the hedge was designated. The gain or loss from remeasuring the hedging instrument at fair value and the gain or loss on the hedged item attributable to  the hedged risk are recognized in earnings.  The hedging items that do not meet the criteria for hedge accounting were classified as financial assets or financial liabilities at  fair value through profit or loss. For all periods presented, no individual customer or supplier constituted more than 10% of the Company’s revenues, trade  notes and accounts receivables, purchases or trade notes and accounts payable. The Company invests its cash with several  financial institutions. The Company also does not have concentrations of available sources of labor, services or other rights  that could, if suddenly eliminated, severely impact its operations. However, telecommunications franchises and licenses are  issued solely by authority of the ROC government. The withdrawal or the revocation of the franchise and licenses by the ROC  government would severely impact the Company’s operations. Earnings per share is computed by dividing net income attributable to stockholders of the parent by the weighted-average  number of common shares outstanding during the periods. Earnings per equivalent ADS is calculated by multiplying the above  earnings per share by ten as each ADS represents ten common shares. Per share data has been restated for all periods presented to reflect capital reductions in 2008 and 2009 and the declaration of  the stock dividends. Expense Recognition Hedge Accounting Concentrations Earnings Per Share and Per Equivalent ADS PART III F-22