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The amendment to the Land Tax Act, relating to the article to permanently lower land value incremental tax, went effective from February 1, 2005. In accordance with the lowered tax rates, Chunghwa recomputed its land value incremental tax, and reclassified the reserve for land value incremental tax of NT$116 million to stockholders’ equity - other adjustments. As of December 31, 2010, the unrealized revaluation increment was decreased to NT$5,803 million by disposal of revaluation assets. 

Depreciation expense on property, plant and equipment was NT$37,101 million, NT$35,114 million and NT$32,737 million for the years ended December 31, 2008, 2009 and 2010, respectively. Interest expense capitalized for the years ended December 31, 2008, 2009, and 2010 were NT$2 million, NT$1 million, and NT$0.01 million, respectively. The capitalized interest rates were 2.268%-2.928%, 1.165%-1.604% and 1.1%, respectively, for the years ended December 31, 2008, 2009 and 2010. 

Chunghwa reclassified the unused property, plant and equipment amounting to NT$61 million to idle assets and recognized the impairment loss of NT$61 million on those assets for the year ended December 31, 2010. 

Losses on property, plant and equipment arising from natural calamities such as earthquakes and typhoons were recorded in non-operating expenses. 

## 17. SHORT-TERM LOANS 

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## 18. SHORT-TERM BILLS PAYABLE 

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## 19. ACCRUED EXPENSES 

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## 20. OTHER CURRENT LIABILITIES 

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