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Regulations Governing the Preparation of Financial Reports by Securities Firms(2011.12.29) |
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Article 14
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Assets shall be properly classified. Current and non-current assets shall be distinguished.
For each asset line item, the total amount expected to be recovered within 12 months after the balance sheet date and the total amount expected to be recovered more than 12 months after the balance sheet date shall be separately presented in the financial statements or disclosed in the notes.
As a minimum, the balance sheet shall include the following asset line items:
- 1. Current assets: A securities firm shall classify an asset as current when it expects to realize the asset, or intends to sell or consume it, in its normal operating cycle; when it holds the asset primarily for the purpose of trading; when it expects to realize the asset within 12 months after the balance sheet date; or when the asset is cash or a cash equivalent, unless the asset is to be used for an exchange or to settle a liability, or otherwise remains restricted, at more than 12 months after the balance sheet date.
- (1) Cash and cash equivalents: Cash on hand, demand deposits, and 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.
A securities firm shall disclose the components of cash and cash equivalents and the policy which it adopts in determining the composition of cash and cash equivalents. - (2) Financial assets at fair value through profit or loss ??current: Financial assets that meet any of the following conditions:
- (1) Financial assets held for trading.
- (ii) Financial assets that, except for those designated as hedged items under hedge accounting requirements, are designated upon initial recognition as at fair value through profit or loss.
A financial instrument shall be recorded and classified as a financial asset held for trading, and shall be recorded under the category of broker's investments in securities, open-end funds or money market instruments, securities held for operations, or derivative instruments if:
- (1) It is acquired principally for the purpose of sale in the near term.
- (2) It is, upon initial recognition, a part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent pattern of short-term profit-taking.
- (3) It is a derivative financial asset, except for a derivative financial asset that is a financial guarantee contract or a designated and effective hedging instrument.
Financial assets at fair value through profit or loss shall be measured at fair value. - (3) Available-for-sale financial assets ??current: Financial assets that are not derivative financial assets and that meet any of the following conditions:
- (i). Financial assets that are designated as available-for-sale.
- (ii). Financial assets that are not:
- (a) Financial assets measured at fair value through profit or loss.
- (b) Held-to-maturity financial assets.
- (c) Financial assets measured at cost.
- (d) Bond investments for which no active market exists.
- (e) Receivables.
Available-for-sale financial assets shall be measured at fair value.
- (4) Derivative financial assets for hedging ??current: Any derivative financial asset that is a designated and effective hedging instrument under hedge accounting requirements. Any such asset shall be measured at fair value.
- (5) Financial assets measured at cost ??current: Financial assets that meet all of the following conditions:
- (i) An investment in equity instruments that do not have a quoted price in an active market, or a derivative instrument that is linked to such equity instruments that do not have a quoted price in an active market and that shall settled by delivery of such equity instruments.
- (ii) The fair value cannot be reliably measured.
- (6) Bond investments for which no active market exists ??current: Bond investments that do not have a quoted price in an active market and with fixed or determinable payments, and that meet all of the following conditions:
- (i) Not classified as at fair value through profit or loss.
- (ii) Not designated as available-for-sale.
- (iii) There are no other reasons except for credit worsening that are likely to cause the holder not being able to recover almost all of the original investments.
Bond investments for which no active market exists shall be measured at amortized cost.
- (7) Investments in bonds with reverse repurchase agreements: The actual amounts paid by a securities firm when engaging in transactions in bonds with reverse repurchase agreements.
- (8) Securities margin loans receivable: Margin loans extended to customers by a securities firm conducting securities trading margin purchase and short sale business.
At each balance sheet date an assessment shall be made of whether there is any uncollectible amount from securities margin loans receivable and an appropriate allowance for doubtful debts shall be made, with the result presented on a net basis. - (9) Deposits for securities borrowed: Guarantee amounts deposited by a securities firm in Securities Borrowing and Lending transactions, either for borrowing underlying securities from the holders or for short selling on an exchange market.
- (10) Collateral for securities borrowed: Collateral posted by a securities firm in Securities Borrowing and Lending transactions, either for borrowing underlying securities from the holders or for short selling on an exchange market.
- (11) Trade receivables: Claims arising from a securities firm's business operations, including transaction proceeds receivable from the sale of securities held for operations, margin loan interest receivable from proprietary margin trading operations, and receivables from the execution of customer orders to buy or sell securities. The details of such trade receivables shall be disclosed in the notes.
Trade receivables shall be measured at amortized cost using the effective interest method. However, short-term trade receivables with no stated interest rate may be measured at the original invoice amount if the effect of discounting is immaterial.
Trade receivables from related parties in significant amounts shall be presented separately.
At each balance sheet date an assessment shall be made of whether there is any uncollectible amount from trade receivables and an appropriate allowance for doubtful debts shall be made, with the result presented on a net basis. - (12) Prepayments: All prepayments and prepaid expenses.
- (13) Other receivables: Receivables other than trade receivables.
At each balance sheet date an assessment shall be made of whether there is any unrecoverable amount from other receivables and an appropriate allowance for doubtful debts shall be made, with the result presented on a net basis. - (14) Current tax assets: The portion of the tax amount already paid in respect of current and prior periods that exceeds the amount due for those periods.
- (15) Non-current assets held for sale: Any non-current asset, or asset included in a disposal group held for sale, that is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups, and whose sale must be highly probable.
The measurement, presentation, and disclosure of non-current assets held for sale and disposal groups held for sale shall be made in accordance with IFRS 5. - (16) Other current assets: Current assets not attributable to any of the classes above.
2. Non-current assets: Tangible, intangible and financial assets of a long-term nature, other than assets classified as current.
- (1) Held-to-maturity financial assets ??non-current: A non-derivative financial asset with fixed or determinable payments and fixed maturity, and which a securities firm has the positive intention and ability to hold to maturity, excluding the following items:
- (i) It is designated, upon initial recognition, as at fair value through profit or loss.
- (ii) It is designated as available-for-sale.
- (iii) It meets the definition of loans and receivables.
Held-to-maturity financial assets shall be measured at amortized cost.
- (2) Investments accounted for using the equity method: An investment in an associate, or an interest in a jointly controlled entity not recognized by the venturer using proportionate consolidation.
The valuation and presentation of investments accounted for using the equity method shall be made in accordance with IAS 28 and IAS 31.
When investment gain or loss is recognized, if the financial reports prepared by an associate do not conform to these Regulations, those financial reports shall first be adjusted to achieve conformance before they may be used to recognize investment gain or loss. The financial reports of an associate used in applying the equity method shall be prepared as of the same date as that of the investor, and if prepared as of a different date, adjustments shall be made for the effects of significant transactions or events that occur between that date and the date of the investor's financial reports. In no case shall there be more than 3 months difference between the balance sheet date of the associate and that of the investor. If a CPA determines, pursuant to Statement of Auditing Standards No. 24, that an associate has a material effect on the fair presentation of the financial reports of an investor, the financial reports of the associate shall be audited by a CPA in accordance with the Regulations Governing
Auditing and Certification of Financial Statements by Certified Public Accountants and generally accepted auditing standards.
If an investment accounted for using the equity method is pledged as collateral or otherwise subject to any restriction or limitation, that fact shall be noted. - (3) Property and equipment: Tangible asset items that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and that are expected to be used during more than 1 financial year.
Property and equipment shall be subsequently measured using the cost model and accounted for in accordance with IAS 16.
Each component of property and equipment that is significant shall be depreciated separately.
When items of property and equipment have different useful lives, or provide economic benefits in different ways, or are subject to different depreciation methods or depreciation rates, the notes shall show each class of their material components. - (4) Investment property: Property held, by the owner or by the lessee under a finance lease, to earn rentals, or for capital appreciation, or both.
Investment property shall be subsequently measured using the cost model and accounted for in accordance with IAS 40. - (5) Intangible assets: An identifiable non-monetary asset without physical substance that meets the definition of identifiability, control by an entity, and existence of future economic benefits.
Intangible assets shall be subsequently measured using the cost model and accounted for in accordance with IAS 38. - (6) Deferred tax assets: The amounts of income taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused tax losses, and the carryforward of unused tax credits.
- (7) Other non-current assets: Non-current assets not attributable to any of the classes above.
The items described in the preceding paragraph in relation to financial assets at fair value through profit or loss, available-for-sale financial assets, financial assets measured at cost, bond investment for which no active market exists, held-to-maturity financial assets, derivative financial assets for hedging, investments in bonds with reverse repurchase agreements, securities margin loans receivable, deposits for securities borrowed, collateral for securities borrowed, trade receivables, and other receivables shall be accounted for in accordance with IAS 39.
A securities firm shall assess at each balance sheet date whether there is any objective evidence of impairment for the items described in paragraph 3 in relation to available-for-sale financial assets, financial assets measured at cost, bond investment for which no active market exists, held-to-maturity financial assets, investments in bonds with reverse repurchase agreements, securities margin loans receivable, deposits for securities borrowed, collateral for securities borrowed, trade receivables, other receivables, investments accounted for using the equity method, property and equipment, investment property, and intangible assets. If any such evidence exists, the securities firm shall recognize the amount of any impairment loss in accordance with IAS 39 and IAS 36.
The items described in paragraph 3 in relation to financial assets at fair value through profit or loss, derivative financial assets for hedging, available-for-sale financial assets, financial assets measured at cost, bond investment for which no active market exists, and held-to-maturity financial assets shall be distinguished as current and non-current based on liquidity.
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Article 15
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Liabilities shall be properly classified. Current and non-current liabilities shall be distinguished.
For each liability line item, the total amount expected to be settled within 12 months after the balance sheet date and the total amount expected to be settled more than 12 months after the balance sheet date shall be separately presented in the financial reports or disclosed in the notes.
As a minimum, the balance sheet shall include the following liability line items:
- 1. Current liabilities: A securities firm shall classify a liability as current when it expects to settle the liability in its normal operating cycle; when it holds the liability primarily for the purpose of trading; when it expects to settle the liability when due within 12 months after the balance sheet date, even if an agreement to refinance or to reschedule payments on a long-term basis is completed after the balance sheet date and before the financial reports are authorized for issue; or when it does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
- (1) Short-term borrowings: Includes short-term borrowings from banks, overdrafts, and other short-term borrowings.
For short-term borrowing, the nature of the borrowing, the guarantee status, and the interest rate range shall be noted based on the type of borrowing. If collateral is provided, the name and carrying amount of the collateral shall be presented. Borrowings from non-financial institutions in accordance with Article 17 of the Regulations Governing Securities Firms shall be presented separately. - (2) Commercial paper payable: Commercial paper issued through financial institutions to acquire funds from the money market.
Commercial paper payable shall be measured at amortized cost using the effective interest method. However, short-term commercial paper payable with no stated interest rate may be measured at the original face amount if the effect of discounting is immaterial.
For commercial paper payable, the guarantor or accepting institution and the interest rate shall be noted. If collateral is provided, the name and carrying amount of the collateral shall be noted. - (3) Financial liabilities at fair value through profit or loss ??current: Financial liabilities that meet either of the following conditions:
- (i) Financial liabilities held for trading.
- (ii) Financial liabilities that, except for those designated as hedged items under hedge accounting requirements, are designated upon initial recognition as at fair value through profit or loss.
A financial instrument shall be classified as a financial liability held for trading, and shall be recorded under the category of investments in bonds with reverse repurchase agreements ??short sale, call (put) warrants, securities borrowed, or derivative instruments, if:
- (i) it is incurred principally for the purpose of repurchasing it in the near term;
- (ii) it is, upon initial recognition, a part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent pattern of short-term profit-taking; or
- (iii) it is a derivative financial liability, except for a financial guarantee contract or a derivative financial liability that is a designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss shall be measured at fair value.
(4) Derivative financial liabilities for hedging ??current: A derivative financial liability that is a designated and effective hedging instrument under hedge accounting requirements. Any such liability shall be measured at fair value.(5) Financial liabilities measured at cost ??current: derivative instrument liabilities that are linked to such equity instruments that do not have a quoted price in an active market and that shall be settled by delivery of such equity instruments, and the fair value cannot be reliably measured.(6) Liabilities for bonds with repurchase agreements: The actual amounts received by a securities firm when engaging in transactions in bonds with repurchase agreements.(7) Short sale margins: Margins received from short selling customers by a securities firm conducting securities trading margin purchase and short sale business.(8) Payables for short sale collateral received: Short sale proceeds (less securities transaction taxes, handling fees for execution of customer orders, and short sale handling fees) received as collateral from short selling customers by a securities firm conducting securities trading margin purchase and short sale business.(9) Trade payables: Payables arising from a securities firm's business operations, including transaction proceeds payable from its purchase of securities held for operations and payables from its execution of customer orders to buy or sell securities. The details of such trade payables shall be disclosed in the notes.
Trade payables shall be measured at amortized cost using the effective interest method. However, short-term trade payables with no stated interest rate may be measured at the original invoice amount if the effect of discounting is immaterial.
Payables to related parties in significant amounts shall be presented separately.(10) Other payables: Payables other than trade payables, such as tax payable, accrued payroll, and dividends payable.
For dividends and bonuses payable passed by resolution of the shareholders meeting, the distribution method and scheduled payment date, if determined, shall be disclosed.(11) Current tax liabilities: Unpaid tax for current and prior periods.(12) Provisions ??current: Any liability of uncertain timing or amount.
Provisions shall be accounted for in accordance with IAS 37.
A provision shall be recognized when a securities firm has a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
A securities firm shall disaggregate provisions into provisions for employee benefits and other items in the notes to the financial reports.(13) Liabilities directly associated with non-current assets held for sale: Any liability included in a disposal group held for sale that is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups, and whose sale must be highly probable.(14) Other current liabilities: Current liabilities not attributable to any of the classes above.
2. Non-current liabilities: Liabilities other than current liabilities.
- (1) Bonds payable (including overseas bonds): For bonds issued by a securities firm, the total approved amount, interest rate, maturity date, name of collateral, carrying amount, issuing area, and other relevant terms and restrictions shall be noted in the notes to the financial reports. If the bonds are convertible bonds, the method of conversion and amounts already converted shall also be noted.
Premiums and discounts on bonds payable are valuations of bonds payable. They shall be presented as an addition to or deduction from bonds payable, and shall also be amortized, as an adjustment to interest expenses, using the effective interest method during the period of bond circulation. - (2) Long-term borrowings: For long-term borrowings, the content, maturity date, interest rate, name of collateral, carrying amount, and any other important restriction terms shall be noted.
For a long-term borrowing repaid in a foreign currency or in an amount translated at a foreign exchange rate, the name and amount of such foreign currency shall be noted.
Long-term notes payable and other long-term payables shall be measured at amortized cost using the effective interest method. - (3) Deferred tax liabilities: The amounts of income taxes payable in future periods in respect of taxable temporary differences.
- (4) Other non-current liabilities: Non-current liabilities not attributable to any of the classes above.
The items described in the preceding paragraph in relation to financial liabilities at fair value through profit or loss, financial liabilities measured at cost, derivative financial liabilities for hedging, liabilities for bonds with repurchase agreements, short sale margins, payables for short sale collateral received, trade payables, and other payables shall be accounted for in accordance with IAS 39.
The items described in paragraph 3 in relation to financial liabilities at fair value through profit or loss, derivative financial liabilities for hedging, financial liabilities measured at cost, and provisions shall be distinguished as current and non-current based on liquidity.
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Article 16
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Equity items, their components, and information to be disclosed in the balance sheet are as follows:
- 1. Equity attributable to owners of the parent:
- (1) Share capital: Capital contributed by shareholders to a securities firm and registered with the competent authority in charge of company registration, but excluding preferred shares in the nature of liabilities.
For share capital, the classes, par value per share, the number of shares authorized, the number of shares issued and fully paid, a reconciliation of the number of shares outstanding at the beginning and at the end of the period, the rights, preferences and restrictions attaching to each class of share capital, shares in the securities firm held by the securities firm or by its subsidiaries or associates, shares reserved for issue (or for transfer or conversion) under options and contracts for the sale of shares, and special conditions shall be disclosed in the notes. - (2) Capital surplus: Means the equity components of financial instruments issued by a securities firm or premiums resulting from share capital transactions between a securities firm and its owners, and typically includes premium in excess of the par value of the shares issued, donated surplus, and others arising as a result of regulatory provisions associated with these Regulations. Capital surpluses shall be presented separately according to their nature; if there is any restriction on their use, the restriction shall be disclosed in the notes.
- (3) Retained earnings (or accumulated deficit): Equity resulting from operating activities, including legal reserves, special reserves, and undistributed earnings (or deficit to be offset).
- (i) Legal reserve: A fixed-percentage reserve appropriated as required by the Company Act.
- (ii) Special reserve: A reserve appropriated from earnings in accordance with the requirements of applicable laws and regulations, contracts, or articles of incorporation, or as resolved at shareholders meetings.
- (iii) Undistributed earnings (or deficit to be offset): Undistributed and unappropriated earnings ("deficit to be offset" is deficit not yet offset).
- (iv) An earnings distribution or offsetting of deficit shall not be accounted for unless and until approved by a shareholders meeting. However, when an earnings distribution or offsetting of deficit has been proposed, such shall be disclosed in the notes to the financial reports for the current period.
- (4) Other equity: Includes the accumulated balances of exchange differences resulting from translating the financial statements of a foreign operation, of unrealized gains or losses from available-for-sale financial assets, and of the effective portion of gains and losses on hedging instruments in a cash flow hedge.
- (5) Treasury shares: Treasury shares shall be accounted for using the cost method and presented as a deduction from equity. The number of shares shall be noted.
- 2. Non-controlling interest: The equity in a subsidiary not attributable, directly or indirectly, to a parent.
In the case of an enterprise from another industry that concurrently operates securities business, when preparing financial statements for its securities segment in accordance with Article 8 of these Regulations, it shall separately present the operating capital earmarked for use in the securities segment under equity items.
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Article 17
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A securities firm shall present all items of income and expense recognized in a period in a single statement of comprehensive income displaying components of profit or loss and components of other comprehensive income.
A securities firm shall present expenses recognized in profit or loss under the preceding paragraph using a classification based on their nature.
When items of income or expense are material, a securities firm shall disclose their nature and amount separately in the statement of comprehensive income or in the notes.
As a minimum, the statement of comprehensive income shall include the following line items, with the related details disclosed in the notes:
- 1. Income:
- (1) Brokerage fee revenue: Revenue from handling fees received by a securities firm for executing customer orders, during short sale or securities lending operations, or for the provision of agency services for transactions in emerging stocks.
- (2) Revenue from underwriting business: Remuneration from underwriting securities on a firm commitment basis, handling fee revenue from underwriting securities on a best-efforts basis, revenue from underwriting processing fees, and revenue from underwriting advisory fees.
- (3) Net gains (losses) on issuance of call (put) warrants: A securities firm's net gains or losses arising from changes in fair value of liabilities for call (put) warrants and of repurchased call (put) warrants, gains on exercise of call (put) warrants before maturity, and gains on expired call (put) warrants, less related fees incurred by the securities firm for issuing call (put) warrants.
- (4) Net gains (losses) on sale of securities held for operations: The net amount after offsetting all gains and losses arising from the sale of securities held for operations by the dealing and underwriting segments.
- (5) Net gains (losses) on measurement at fair value through profit or loss for securities held for operations: The net amount after offsetting all gains and losses arising from the fair value measurement of securities held for operations that are acquired by the dealing and underwriting segments.
- (6) Net gains (losses) on the covering of securities borrowing and short sales of bonds with reverse repurchase agreements: In the case of a securities firm engaging in securities borrowing or outright sale of government bonds acquired under reverse repurchase agreements, the net amount after offsetting all gains arising from a decline in the market price of the given security when the trade is covered at maturity with all losses arising from an increase in the market price of the given security when the trade is covered at maturity.
- (7) Net gains (losses) on measurement at fair value through profit or loss for securities borrowing and short sales of bonds with reverse repurchase agreements: In the case of a securities firm engaging in securities borrowing or outright sale of government bonds acquired under reverse repurchase agreements, the net amount after offsetting all gains and losses from measuring relevant items at fair value.
- (8) Interest revenue: Interest revenue that a securities firm derives from its margin purchase or money lending business or otherwise related to its business activities.
- (9) Net income from wealth management business: In the case of a securities firm engaging in wealth management business, the net amount of the resultant revenues less related expenditures.
- (10) Net gains (losses) on derivative instruments: In the case of a securities firm engaging in domestic or foreign derivative instrument business or hedging transactions, the net amount after offsetting the resultant gains and losses.
- (11) Other operating income: Operating revenues and gains not attributable to any of the items above.
The recognition and measurement of revenue shall be made in accordance with IAS 18.
- 2. Handling fee expenses: Includes broker's exchange fees, dealer's exchange fees, and underwriting handling fees that a securities firm is required to pay to the Taiwan Stock Exchange or the GreTai Securities Market.
- 3. Employee benefits expenses: Expenses in relation to employee benefits that IAS19 requires to be recognized, including short-term employee benefits (such as wages, salaries, and labor and national health insurance contributions for employees), post-employment benefits (such as pensions), other long-term employee benefits (such as long-service leave), and termination benefits (such as early retirement incentive programs).
If the post-employment preferential deposit interest rate that a securities firm has offered to an employee in accordance with its internal rules or as stipulated in the employment contract is higher than the prevailing interest rate on the market, IAS 19 shall apply to the excess portion of the interest upon the employee's retirement. - 4. Depreciation and amortization expenses: Related depreciation and amortization expenses that IAS16 and IAS38 require to be recognized.
- 5. Finance costs: Include interest expenditures incurred in relation to operating activities and for all classes of liabilities, with the portion eligible for capitalization being deducted.
- 6. Other operating expenses: Operating expenses required for a securities firm's business management needs and not attributable to any of the items above.
- 7. Share of the profit or loss of associates and joint ventures accounted for using the equity method: The profit or loss of associates and jointly controlled entities that a securities firm recognizes using the equity method according to its share in the associates and jointly controlled entities.
- 8. Tax expense (benefit): The aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.
- 9. Profit or loss of discontinued operations: The post-tax profit or loss of discontinued operations and the post-tax gain or loss recognized on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation.
The presentation and disclosure of profit or loss of discontinued operations shall be made in accordance with IFRS 5. - 10. Profit or loss for the period: Earnings or deficit in the current reporting period.
- 11. Other comprehensive income: Each component of other comprehensive income classified by nature, including exchange differences resulting from translating the financial statements of a foreign operation, unrealized gains or losses from available-for-sale financial assets, gains and losses on measuring investments in equity instruments at fair value through other comprehensive income, the effective portion of gains and losses on hedging instruments in a cash flow hedge, and actuarial gains and losses on defined benefit plans.
- 12. Share of the other comprehensive income of associates and joint ventures accounted for using the equity method.
- 13. Total comprehensive income.
- 14. Allocations of profit or loss for the period attributable to non-controlling interest and owners of the parent.
- 15. Allocations of total comprehensive income for the period attributable to non-controlling interest and owners of the parent.
- 16. Basic and diluted earnings per share for profit or loss from continuing operations attributable to the ordinary equity holders of the parent entity and for profit or loss attributable to the ordinary equity holders of the parent entity.
The calculation and presentation of earnings per share shall be made in accordance with IAS 33.
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Article 25
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A securities firm preparing parent company only financial reports shall apply accounting treatment conforming to the requirements of Chapter II of these Regulations, except when it has control, significant influence, or joint control over an invested company, in which case it shall value the long-term equity investment using the equity method.
The profit or loss for the period and other comprehensive income presented in parent company only financial reports shall be the same as the allocations of profit or loss for the period and of other comprehensive income attributable to owners of the parent presented in the financial reports prepared on a consolidated basis, and the owners' equity presented in the parent company only financial reports shall be the same as the equity attributable to owners of the parent presented in the financial reports prepared on a consolidated basis.
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Article 27
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A securities firm preparing parent company only financial reports shall prepare statements of major accounting items.
Titles of statements of major accounting items are as follows:
- 1. Statements of assets and liabilities items:
- (1) Statement of cash and cash equivalents.
- (2) Statement of financial assets at fair value through profit or loss ??current.
- (3) Statement of available-for-sale financial assets ??current.
- (4) Statement of derivative instruments.
- (5) Statement of financial assets measured at cost ??current.
- (6) Statement of bond investment for which no active market exists ??current.
- (7) Statement of investments in bonds with reverse repurchase agreements.
- (8) Statement of securities margin loans receivable.
- (9) Statement of trade receivables.
- (10) Statement of prepayments.
- (11) Statement of other receivables.
- (12) Statement of non-current assets held for sale.
- (13) Statement of other current assets.
- (14) Statement of changes in financial assets at fair value through profit or loss ??non-current.
- (15) Statement of available-for-sale financial assets ??non-current.
- (16) Statement of held-to-maturity financial assets ??current.
- (17) Statement of financial assets measured at cost ??non-current
- (18) Statement of bond investment for which no active market exists ??non-current
- (19) Statement of changes in investments accounted for using the equity method.
- (20) Statement of changes in accumulated impairment of investments accounted for using the equity method.
- (21) Statement of changes in property and equipment.
- (22) Statement of changes in accumulated depreciation of property and equipment.
- (23) Statement of changes in accumulated impairment of property and equipment.
- (24) Statement of changes in investment property.
- (25) Statement of changes in accumulated depreciation of investment property.
- (26) Statement of changes in accumulated impairment of investment property.
- (27) Statement of deferred tax assets.
- (28) Statement of other non-current assets.
- (29) Statement of short-term borrowings.
- (30) Statement of financial liabilities at fair value through profit or loss ??current.
- (31) Statement of financial liabilities measured at cost.
- (32) Statement of liabilities for bonds with repurchase agreements.
- (33) Statement of short sale margins.
- (34) Statement of payables for short sale collateral received.
- (35) Statement of trade payables.
- (36) Statement of other payables.
- (37) Statement of provisions ??current.
- (38) Statement of liabilities directly associated with non-current assets held for sale.
- (39) Statement of other current liabilities.
- (40) Statement of financial liabilities at fair value through profit or loss ??non-current.
- (41) Statement of long-term borrowings.
- (42) Statement of provisions ??non-current.
- (43) Statement of deferred tax liabilities.
- (44) Statement of other non-current liabilities.
- 2. Statements of profit or loss items:
- (1) Statement of brokerage fee revenue.
- (2) Statement of revenue from underwriting business.
- (3) Statement of gains (losses) on sale of securities.
- (4) Statement of interest revenue.
- (5) Statement of finance costs.
- (6) Statement of employee benefits, depreciation, amortization, and other operating expenses.
A securities firm may determine, having regard to the concept of materiality, whether or not to separately present the statements of assets and liabilities items described in subparagraph 1 of the preceding paragraph.
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Article 35-1
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For the financial assets or financial liabilities measured at cost prior to the date of conversion, a securities firm may, on the date of conversion, elect to use the exemption designated by the previously recognized financial instruments pursuant to IFRS 1, or classifies them as financial assets or financial liabilities held for trading on the premises that they meet the conditions for financial assets or financial liabilities held for trading under Article 14 or 15 of these Regulations.
Financial assets or financial liabilities not included in the preceding paragraph may not be reclassified on the date of conversion.
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