PART III F-74 In December 2011, the FASB issued an accounting update, which creates new disclosure requirements regarding the nature  of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. Certain disclosures of the amounts of certain instruments subject to enforceable master netting arrangements or similar  agreements would be required, irrespective of whether the entity has elected to offset those instruments in the statement of  financial position. The disclosure requirements are effective for annual reporting periods beginning on or after January 1,  2013 with retrospective application required. Since this standard impacts disclosure requirements only, its adoption is not  expected to have a material impact on the Company’s results of operations, financial condition or cash flows. b. Share-based compensation The Company adopted share-based compensation guidance to recognize compensation cost of options granted by SENAO. The guidance requires companies to estimate the fair value of share-based payment awards on the date of grant using an  option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense  ratably over the requisite service period. The Company has estimated the fair value of stock options as of the date of grant  using the Black-Scholes option pricing model. The Compensation expenses related to stock options were NT$17 million, NT$5 million and NT$2 million for 2009, 2010  and 2011, respectively. There is no income tax benefit effect related to share-based compensation arrangements. The weighted average remaining contractual term and aggregate intrinsic value of options under the foregoing plans as of  December 31, 2011 were as follows: The aggregate intrinsic value in the above table represents the total intrinsic value (the difference between the Company’s  closing stock price on the last trading day of fiscal year 2011 and the exercise price, multiplied by the number of in-the- money options) that would have been received by the option holders had all option holders exercised their options on  December 31, 2011. Intrinsic value will change in future periods based on the fair market value of the Company’ s stock  and the number of shares outstanding. SENAO did not grant any options in 2009, 2010 and 2011. Total intrinsic values of options exercised for the years ended December 31, 2009, 2010 and 2011 were NT$113 million,  NT$110 million and NT$193 million, respectively. Total fair values of shares vested during the years ended December 31,  2009, 2010 and 2011 were NT$252 million, NT$164 million and NT$204 million, respectively. As of December 31, 2011, there was no unrecognized compensation expense related to share-based compensation plan.  Weighted Average  Remaining  Contractual Term Aggregate Intrinsic  Value (In Years) NT$  (In Millions) Options outstanding  1.72 123 Options exercisable 1.72 123