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Article 4
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"Financial reports" shall mean financial statements, statements of major accounting items, and any other disclosures and explanatory information helpful to the decision making of the primary users.
A complete set of financial statements shall comprise a balance sheet, a statement of comprehensive income, a statement of changes in equity, a statement of cash flows, and their accompanying notes or supplementary schedules.
An issuer, unless newly established, or under any of the circumstances set out in paragraph 4 herein, or otherwise required by the FSC, shall prepare the major financial statements and notes described in the preceding paragraph by presenting comparative information for two consecutive periods. The major financial statements shall also be signed or sealed on each page by the issuer's chairperson, managerial officer, and principal accounting officer.
When an issuer applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial reports, or when it reclassifies items in its financial reports, it shall do so in accordance with the applicable provisions of IFRS 18.
For the purposes of these Regulations, information is material if omitting, misstating or obscuring the information in the financial reports could reasonably be expected to influence decisions that the primary users of general purpose financial reports make on the basis of information in those financial reports. Judgments of materiality depend on qualitative factors and quantitative factors. Whether information is quantitatively material is assessed by considering not only the size of the impact recognized in the financial report, but also any unrecognized items that could ultimately affect primary users' overall perception of the issuer's financial position, financial performance and cash flows (e.g., contingent liabilities or contingent assets). When assessing qualitative factors, consideration shall be given to both issuer-specific and external qualitative factors, including involvement of a related party, uncommon transactions or features of a transaction, unexpected variation or changes in trends, the issuer's geographical location, its industry sector, or the state of the economy or economies in which it operates.
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Article 12
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An issuer 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.
An issuer shall in principle present revenues and expenses recognized in profit or loss under the preceding paragraph using a classification based on their function, and shall also disclose additional information by nature in accordance with IFRS 18, including depreciation, amortization, employee benefits expense, impairment losses and reversals of impairment losses, inventory write-downs and reversals of inventory write-downs.
When items of income or expense are material, an issuer shall disclose their nature and amount separately in the statement of comprehensive income or in the notes.
Income and expenses recognized in profit or loss under paragraph 1 shall be classified into the operating category, investing category, financing category, income taxes category, or discontinued operations category in accordance with IFRS 18. An issuer shall further assess whether it has specific main business activities of investing in particular types of assets or providing financing to customers, so as to classify income and expenses into the appropriate categories.
As a minimum, the statement of comprehensive income shall include the following line items:
1. Revenue:
A. Operating revenue: Means income arising from main business activities, including revenue from the transfer of goods and services, and the like.
B. The recognition and measurement of revenue from contracts with customers shall be made in accordance with IFRS 15. If an entity controls specific goods or services before it transfers the goods or services to its customer, it shall recognize the revenue based on the gross amount; otherwise, it shall recognize the revenue based on the net amount.
2. Operating costs: Costs attributable to main business activities during the period, including costs attributable to the transfer of goods or services to customers, and the like.
3. Operating profit or loss: Comprises all income and expenses classified in the operating category.
4. Interest revenue calculated using the effective interest method: Means interest revenue calculated using the effective interest method under IFRS 9.
5. Net profit or loss upon derecognition of financial assets measured at amortized cost: Means the net profit or less that arises when an entity derecognizes from its books financial assets measured at amortized cost that it had originally recognized.
6. Expected credit impairment loss (or gain): The expected amount of credit loss (or reversal) according to IFRS 9.
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 interests in joint ventures that an issuer recognizes using the equity method according to its share in the associates and the interests in joint ventures.
8. Net profit or loss upon reclassification of financial assets: Means one of the following conditions, in accordance with IFRS 9:
A. Net profit (or loss) that arises when financial assets are reclassified from being measured at amortized cost to being measured at fair value through profit or loss.
B. Cumulative net profit (or loss) that arises when financial assets are reclassified from being measured at fair value through other comprehensive income to being measured at fair value through profit or loss.
9. Profit or loss before financing and income tax: Comprises operating profit or loss and all income and expenses classified in the investing category.
10. 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.
11. Profit or loss of discontinued operations:
A. 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.
B. The presentation and disclosure of profit or loss of discontinued operations shall be made in accordance with IFRS 5.
12. Profit or loss for the period: Earnings or deficit in the current reporting period.
13. Other comprehensive income: Means each component of other comprehensive income classified by nature, including share of the other comprehensive income of associates and joint ventures accounted for using the equity method:
A. Items that may be subsequently reclassified into profit or loss: Include exchange differences resulting from translating the financial statements of a foreign operation, unrealized valuation gains and loss from debt investment instruments measured at fair value through other comprehensive income, and gains and loss on hedging instruments.
B. Items not to be reclassified into profit or loss: Include revaluation surplus, unrealized valuation gains and loss from equity investment instruments measured at fair value through other comprehensive income, remeasurements of defined benefit plans, and gains and loss on hedging instruments.
14. Total comprehensive income.
15. Allocations of profit or loss during the period attributable to non-controlling interest and owners of the parent.
16. Allocations of total comprehensive income during the period attributable to non-controlling interest and owners of the parent.
17. Earnings per share:
A. 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.
B. The calculation and presentation of earnings per share shall be made in accordance with IAS 33.
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Article 15
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To meet the objective of presenting full and complete information about the financial position, financial performance, and cash flows of an issuer, financial reports shall contain explanatory notes disclosing the following:
1. Company history and scope of business operations.
2. A statement that the financial reports comply with these Regulations, applicable laws and regulations (giving the title of the laws or regulations), as well as IFRS, IAS, IFRIC Interpretations, and SIC Interpretations.
3. The date when the financial reports were authorized for issue and the process involved in authorizing the financial reports for issue.
4. The effect or impact that may arise when it has or has not applied a new or revised IFRS, IAS, IFRIC Interpretation, or SIC Interpretation endorsed by the FSC.
5. A summary of material accounting policies used that are relevant to an understanding of the financial reports, and the measurement basis (or bases) used in preparing the financial reports.
6. Material accounting judgments, estimations, and assumptions, as well as information about the assumptions it makes and other major sources of estimation uncertainty.
7. Objectives, policies and processes for managing capital, and any change in capital structure, including funding, liability, and equity.
8. If for a special reason there is a change in accounting treatment, thus affecting the comparison of financial data between two successive periods, the reason for the change and its effect on the financial reports shall be noted.
9. If it is necessary to provide the basis of valuation for any amount, financial instrument, or other item presented in the financial reports, that basis of valuation shall be noted.
10. If any item presented in the financial reports is subject to any legal, regulatory, contractual, or other restriction, the circumstances and timing of the restriction and other related information shall be noted.
11. Criteria for classifying assets and liabilities into current and non-current.
12. Material contingent liabilities and unrecognized contractual commitments.
13. Financial risk management objectives and policies.
14. Long-term and short-term borrowings.
15. The addition, expansion, construction, lease, obsolescence, idling, sale, transfer, or long-term renting of major assets.
16. Principal investments in other enterprises.
17. Material transactions with related parties.
18. Losses due to material disasters.
19. Any research and development project funded by another party and the amount.
20. Material litigation pending or concluded.
21. The signing, completion, voidance, or lapse of material contracts.
22. Information about financial instruments. The information shall be disclosed in accordance with IFRS 7, including disclosure of the significance of financial instruments for the entity's financial position and performance; qualitative and quantitative disclosures describing risk exposures arising from financial instruments.
23. Comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers shall be disclosed in accordance with IFRS 15, including details of revenue recognized from contracts with customers, contract balances, contract obligations, material judgments and changes in the judgments, and any assets recognized from the costs to obtain or fulfil a contract with a customer.
24. Relevant information about leases. The information shall be disclosed in accordance with IFRS 16, including disclosure of information that gives a basis for the primary users of the financial reports to assess the effect that the leases have on the financial position, financial performance, and cash flows of the issuer, and relevant qualitative and quantitative information about its leasing activities.
25. Information about employee benefits. The information shall be disclosed in accordance with IAS 19, and shall include the influence of defined benefit plans on the amount, timing, certainty of future cash flows, actuarial losses and gains arising from changes in demographic assumptions and financial assumptions, and the expected contributions in the next reporting period in the following financial year.
26. Information relating to management-defined performance measures. The information shall be disclosed in accordance with IFRS 18, including a description of how the management-defined performance measures communicate an aspect of financial performance from the management's view, the calculation method, and a reconciliation to the totals or subtotals in the statement of comprehensive income.
27. Segment financial information. Information shall be disclosed in accordance with IFRS 8, including types of goods and services sold or rendered by each reportable segment, revenue, and gains and losses.
28. Information on investment in the Mainland Area.
29. Information about investments in derivative instruments.
30. When subsidiaries hold shares in the parent, the names of the subsidiaries and the shareholdings, amounts, and reasons shall be separately presented.
31. In the case of private placement of securities, the type, issue date, and amount shall be disclosed.
32. Material organizational adjustments and material management reforms.
33. Material effects of changes in government laws and regulations.
34. Fair value information. The information shall be disclosed in accordance with IFRS 13, and shall include information on recurring or non-recurring fair value measurement of assets and liabilities, inputs such as fair value valuation technique and parameters or assumptions used in fair value measurement, and Level 3 of fair value hierarchy.
35. Foreign-currency-denominated assets and liabilities that have material effect: Include the amount of risk exposure, currency, and exchange rate for monetary and non-monetary items denominated in foreign currencies, and the foreign exchange gains or losses on monetary items.
36. Supporting information for items presented in the balance sheet and in the statements of comprehensive income, of changes in equity and of cash flows, including material information that could affect the issuer's future cash flows, or other necessary descriptions essential for avoiding misunderstanding by the primary users or for the fair presentation of the financial reports.
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Article 19
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Titles and forms of financial statements are as follows:
1. Balance sheet (Forms 1 and 1-1).
2. Statement of comprehensive income (Forms 2 and 2-1).
3. Statement of changes in equity (Form 3).
4. Statement of cash flows (Form 4).
5. Schedules to the financial reports (Forms 5-1 to 5-12).
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Article 23
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An issuer preparing parent company only financial reports shall prepare statements of major accounting items.
Titles and forms of statements of major accounting items are as follows:
1. Statements of assets and liabilities items:
A. Statement of cash and cash equivalents (Form 6-1).
B. Statement of financial assets measured at fair value through profit or loss - current (Form 6-2).
C. Statement of financial assets measured at fair value through other comprehensive income - current (Form 6-3).
D. Statement of financial assets for hedging - current (Form 6-4).
E. Statement of financial assets measured at amortized cost - current (Form 6-6).
F. Statement of notes receivable (Form 6-7).
G. Statement of trade receivables (Form 6-8).
H. Statement of other receivables (Form 6-9).
I. Statement of inventories (Form 6-10).
J. Statement of biological assets - current (Form 6-11).
K. Statement of prepayments (Form 6-12).
L. Statement of non-current assets held for sale (Form 6-13).
M. Statement of other current assets (Form 6-14).
N. Statement of changes in financial assets measured at fair value through profit or loss - non-current (Form 6-15).
O. Statement of financial assets measured at fair value through other comprehensive income - non-current (Form 6-16).
P. Statement of financial assets for hedging - non-current (Form 6-18).
Q. Statement of financial assets measured at amortized cost - non-current (Form 6-20)
R. Statement of changes in investments accounted for using the equity method (Form 6-21).
S. Statement of changes in accumulated impairment of investments accounted for using the equity method (Form 6-22).
T. Statement of changes in property, plant and equipment (Form 6-23).
U. Statement of changes in accumulated depreciation of property, plant and equipment (Form 6-24).
V. Statement of changes in accumulated impairment of property, plant and equipment (Form 6-25).
W. Statement of changes in right-of-use assets (Form 6-26).
X. Statement of changes in accumulated depreciation of right-of-use assets (Form 6-27).
Y. Statement of changes in accumulated impairment of right-of-use assets (Form 6-28).
Z. Statement of changes in investment property (Form 6-29).
AA. Statement of changes in accumulated depreciation of investment property (Form 6-30).
AB. Statement of changes in accumulated impairment of investment property (Form 6-31).
AC. Statement of changes in intangible assets (Form 6-32).
AD. Statement of deferred tax assets (Form 6-33).
AE. Statement of biological assets - non-current (Form 6-34).
AF. Statement of other non-current assets (Form 6-35).
AG. Statement of short-term borrowings (Form 7-1).
AH. Statement of short-term bills payable (Form 7-2).
AI. Statement of financial liabilities at fair value through profit or loss - current (Form 7-3).
AJ. Statement of financial liabilities for hedging - current (Form 7-4).
AK. Statement of notes payable (Form 7-6).
AL. Statement of trade payables (Form 7-7).
AM. Statement of other payables (Form 7-8).
AN. Statement of provisions - current (Form 7-9).
AO. Statement of liabilities directly associated with non-current assets held for sale (Form 7-10).
AP. Statement of other current liabilities (Form 7-11).
AQ. Statement of changes in financial liabilities at fair value through profit or loss - non-current (Form 7-12).
AR. Statement of financial liabilities for hedging - non-current (Form 7-13).
AS. Statement of bonds payable (Form 7-14).
AT. Statement of long-term borrowings (Form 7-15).
AU. Statement of lease liabilities (Form 7-16).
AV. Statement of provisions - non-current (Form 7-17).
AW. Statement of deferred tax liabilities (Form 7-18).
AX. Statement of other non-current liabilities (Form 7-19).
2. Statements of profit or loss items:
A. Statement of operating revenue (Form 8-1).
B. Statement of operating costs (Form 8-2).
C. Summary statement of employee benefit expenses incurred for the period expenses (Form 8-7).
An entity 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 24-2
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Goodwill which is recognized in connection with a business combination shall be presented as a single line item in the balance sheet, and shall be tested for impairment at least annually in accordance with IAS 36. If there is any material difference between the actual operation conditions of the acquired company after the business combination and the expected benefits at the time of acquisition, it shall be disclosed in the notes.
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Article 29
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The financial reports and related supplementary documents that an issuer is required to file and submit under Article 36 of the Act shall be transmitted in the form of electronic files to the information disclosure website designated by the FSC.
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Article 31
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These Regulations shall come into force from the date of issuance, with the exception of Article 2, Article 4, Article 7, paragraph 1, Articles 8 to 13, Article 15, Article 17, Article 19, Article 20, Article 21, Article 24, Article 26, and Article 28, as amended on 13 August 2014, which shall come into force from financial year 2015; the articles amended on 19 December 2016, which shall come into force from financial year 2017; the articles amended on 28 June 2017, which shall come into force from financial year 2018; Article 9, paragraph 4, subparagraphs 3 and 4, Article 9, paragraph 6, Article 10, Article 15, Article 23, and Forms 1 and 1-1 of Article 19, as amended on 13 July 2018, which shall come into force from financial year 2019; the articles amended on 18 March 2020, which shall come into force from financial year 2020; Article 6 and Article 9, paragraph 4, subparagraph 1, item B amended on 24 November 2022, which shall come into force from financial year 2023; Article 10 amended on 28 December 2023, which shall come into force from financial year 2024; the articles amended on 19 March 2025, which shall come into force from financial year 2025; and Article 29 amended on 6 February 2026, which shall come into force from financial year 2026, and Articles 4, 12, 15, 23, and 24-2 amended on 6 February 2026, shall will come into force from financial year 2028.
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