PART I 120 A. Debt Securities  Not applicable  B. Warrants and Rights  Not applicable  C. Other Securities  Not applicable  ITEM 12.  DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES  Other Market Risk  We have made investments in convertible bonds and corporate bonds issued by domestic public  companies with strong industry leadership and solid profits. Industries we invested include financial holdings,  semiconductors and electronics. As of December 31, 2010, total value of our investments in convertible bonds  and corporate bonds amounted to NT$145 million (US$5.0 million), of which, NT$43 million (US$1.5 million)  convertible bonds were classified as financial assets at fair value through profit or loss and NT$102 million  (US$3.5 million) corporate bonds were classified as available-for-sale financial assets on recognition. The fair  values of these convertible bonds and corporate bonds are either based on quoted market prices or valued using  market-based observable inputs including duration, yield rate and credit rating, which are subject to fluctuation  based on many factors such as prevailing market conditions. However, we do not expect the gains and losses in  the values of these investments to have a material impact on our financial condition and results of operations.  The total value of our equity portfolio amounted to NT$2.1 billion (US$71.7 million) as of December 31,  2010, which was approximately 88% less than the total value of our equity portfolio as of December 31, 2009.  This decline was mainly due to the net selling-down of our portfolio, partially offset by the increase in equity  prices over 2010. Compared to a net unrealized loss of NT$456.7 million on our equity portfolio at the end  of 2009, we recognized a net unrealized gain of NT$208.2 million (US$7.1 million) on our equity portfolio  as of December 31, 2010. This was mainly due to net selling-down of our portfolio, which turned unrealized  gains or losses into realized gains or losses, and the increase in equity prices during 2010. For the year ended  December 31, 2010, pursuant to R.O.C. and U.S. accounting regulations, no impairment charge was recognized  .The value of our equity holdings fluctuates depending on the market conditions. However, we do not expect the  gains and losses in the values of the equities that we hold to have a material impact on our financial condition  and results of operations.  December 31, 2010 Carrying Amount Unrealized Gain Unrealized Loss NT$ NT$ NT$ (In Millions) Available-for-sale equity securities Open-end mutual funds $ 1,562  $  14  $  23  Domestic listed stocks 527  236  19  2,089  250  42 