b.  As of December 31, 2011, the Company had assessed the material differences, shown below, between the existing  accounting policies and the accounting policies to be adopted under IFRSs: F-61 PART III Accounting Issues Description of Differences The definition and reclassification of cash and cash  equivalents Under ROC GAAP, cash and cash equivalents includes time deposits that  are cancellable but without any loss of principal. Under IFRSs, cash  equivalents are short-term, highly liquid investments that are readily  convertible to known amounts of cash and which are subject to an  insignificant risk of changes in value. Therefore, an investment normally  qualifies as a cash equivalent only when it has a short maturity of three  months or less from the date of acquisition. The classification of real estate 1)  Under ROC GAAP, there’s no related guidance about investment  property. Under IFRSs, real estate should be classified as “property, plant  and equipment” or “investment property” in accordance with IAS 16 and  IAS 40. 2)  Under IFRSs, “property, plant and equipment” and “investment property”  are recognized at costs or the deemed costs using the revalued amounts  which were determined under ROC GAAP. The Company chooses  cost model as its accounting policy for subsequent recognition of  aforementioned items. The classification of leased assets and idle assets Under IFRSs, assets, which are classified as leased assets and idle assets  under ROC GAAP, are classified as “property, plant and equipment” or  “investment property” according to their nature. The recognition and classification of deferred income  tax asset and liability 1)  Under ROC GAAP, a deferred income tax asset and liability should be  classified as current and noncurrent in accordance with the classification  of its related asset or liability. When a deferred income tax asset and  liability does not relate to an asset or liability, then it is classified as either  current or noncurrent based on the expected length of time before it is  realized or settled. However, under IFRSs, a deferred income tax asset  and liability should be classified as noncurrent. 2)  Under ROC GAAP, if it is more likely than not that deferred income  tax assets will not be realized, the valuation allowances are provided  to the extent. However, under IFRSs, deferred income tax assets are  only recognized when it is more likely than not to be realized, and the  valuation allowance is not used under IFRSs. (Continued)