Chapter II Financial Reports
|
Section I Balance Sheet
|
| Article 11 | Assets shall be properly classified. Current and non-current assets shall be distinguished, except when a presentation of all assets in order of liquidity provides information that is reliable and more relevant.
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 reports or disclosed in the notes.
Current assets means that the company-type stock exchange expects to realize the asset, or intends to sell or consume it, in its normal operating cycle; that it holds the asset primarily for the purpose of trading; that it expects to realize the asset within 12 months after the balance sheet date; or that 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. As a minimum, current assets shall include the following asset line items:
- Cash and cash equivalents:
- Cash on hand, demand deposits, and short-term, highly liquid time deposits or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
- A company-type stock exchange shall disclose the components of cash and cash equivalents and the policy which it adopts in determining the composition of cash and cash equivalents.
- Financial assets at fair value through profit or loss –current:
- Financial assets not measured at amortized cost or at fair value through other comprehensive income.
- Financial assets measured at amortized cost or at fair value through other comprehensive income, which may be designated as financial assets measured at fair value through profit or loss according to IFRS 9.
- Financial assets measured at fair value through other comprehensive income - current:
- Debt instrument investments that meet all of the following conditions:
- The company-type stock exchange holds the financial assets within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
- Equity investments not held for trading, for which the entity has irrevocably elected at initial recognition to present changes in fair value in "other comprehensive income".
- Financial assets measured at amortized cost – current, meaning all of the following conditions are met:
- The company-type stock exchange holds the financial assets within a business model whose objective is to hold the financial asset to collect the contractual cash flows.
- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
- Financial assets for hedging –current: Any financial asset that is a designated and effective hedging instrument under hedge accounting requirements.
- Contract assets:
- The entity has transferred goods or services to the customer according to the terms and conditions of a contract, but does not yet have an unconditional right to consideration.
- The recognition and measurement of the loss allowance for contract assets shall be in accordance with IFRS 9.
- Trade receivables: Means the entity has an unconditional contractual right to consideration for goods or services that have been transferred:
- Trade receivables shall be measured in accordance with IFRS 9. 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.
- With respect to discounted or transferred trade receivables, an assessment shall be made to determine whether the risks and rewards of the trade receivables, and the control retained over them, will qualify them for derecognition under IFRS 9.
Trade receivables from related parties in significant amounts shall be presented separately.
- The company-type stock exchange shall disclose an aged analysis of trade receivables.
- Other receivables: Refers to receivables other than notes receivable and trade receivables.
- 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.
- Prepayments: All prepayments and prepaid expenses.
- 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.
- When non-current assets or disposal groups classified as held for sale no longer meet the criteria in IFRS 5, they shall cease to be classified as held for sale.
- When assets or disposal groups meet the definition of held for distribution to owners, they shall be reclassified from held for sale to held for distribution to owners, and shall be deemed an extension of the original disposal plan, and the classification, presentation, and measurement of the new disposal plan shall apply. When the assets or disposal groups classified as held for distribution to owners no longer meet the criteria in IFRS 5, they shall cease to be classified as held for distribution to owners.
- Other current assets: Current assets not attributable to any of the classes above.
Non-current assets means tangible, intangible and financial assets of a long-term nature, other than assets classified as current. As a minimum, non-current assets shall include the following asset line items:
- Investments accounted for using the equity method:
- The valuation and presentation of investments accounted for using the equity method shall be made in accordance with IAS 28.
- 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. 51, 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.
- 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 or 1 operating cycle.
- 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. The depreciation method used shall reflect the pattern in which the asset's future economic benefits are expected to be consumed. If that pattern cannot be determined reliably, the straight-line method shall be used. The depreciable amount should be allocated on a systematic basis over the asset's useful life.
- 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 to the financial reports shall show each class of their material components.
- Right-of-use assets:
- Means an asset that represents a lessee's right to use an underlying asset for the lease term.
- A right-of-use asset shall be accounted for in accordance with IFRS 16.
- Investment property:
- Means property that is held by the owner or that is held by the lessee with the right of use, 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. If the investment property is subsequently measured at fair value, the valuation model, qualifications of the appraiser, and information disclosure shall comply with Article 9, paragraph 4, subparagraph 4 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
- Intangible assets:
- Refers to an identifiable non-monetary asset without physical substance that meets the definition of identifiability, control, and existence of future economic benefits.
- Intangible assets shall be subsequently measured using the cost model and accounted for in accordance with IAS 38.
- The amortization method used shall reflect the pattern in which the asset's future economic benefits are expected to be consumed. If that pattern cannot be determined reliably, the straight-line method shall be used. The amortized amount of an intangible asset shall be allocated on a systematic basis over its useful life.
- 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.
- Settlement and clearing debit items: Refers to an item used by a company-type stock exchange for its securities settlement and clearing operations:
- Settlement and clearing funds: Settlement and clearing funds deposited by securities firms in accordance with the Act and the Regulations Governing Securities Firms and the interest revenue and relevant fees arising from these funds shall be recorded under this item. The nature, content, utilization, and pledge status of these funds shall be indicated in the notes to the financial reports.
- Settlement prices: Settlement amounts receivable from securities firms.
- Other non-current assets: Non-current assets not attributable to any of the classes above.
The accounting treatment and the recognition and measurement of loss allowances for the items described in the preceding two paragraphs in relation to financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, financial assets measured at amortized cost, financial assets for hedging, trade receivables, and other receivables shall be in accordance with IFRS 9. Loss allowances shall be classified respectively as a deduction from financial assets measured at amortized cost, notes receivable, trade receivables, and other receivables. If those classifications are further subclassified, the loss allowances thereof shall also be presented respectively in the same manner.
A company-type stock exchange shall assess at each balance sheet date whether there is any objective evidence of impairment for the items described in paragraph 4 in relation to investments accounted for using the equity method, property and equipment, right-of-use assets, investment property measured using the cost model, intangible assets, and evaluation assets. If any such evidence exists, the company-type stock exchange shall recognize the amount of any impairment loss in accordance with IAS 36. If the recoverable amount of non-financial assets is determined on the basis of fair value less costs of disposal, disclose the extra information regarding the fair value measurement, including the level of the fair value hierarchy, the valuation techniques, and the key assumptions. If the recoverable amount is determined on the basis of value in use, disclose the discount rate for value in use measurement.
With respect to the items described in paragraph 3 and paragraph 4 in relation to financial assets at fair value through profit or loss, financial assets measured at fair value through other comprehensive profit or loss, financial assets measured at amortized cost, financial assets for hedging, trade receivables, other receivables, non-current assets held for sale, and investment property, the measurement and disclosure of fair value shall be made in accordance with IFRS 13.
The items described in paragraph 3 and paragraph 4 in relation to financial assets at fair value through profit or loss, financial assets measured at fair value through other comprehensive profit or loss, financial assets measured at amortized cost, financial assets for hedging, and contract assets shall be distinguished as current and non-current based on liquidity.
|
Info |
| Article 12 | Liabilities shall be properly classified. Current and non-current liabilities shall be distinguished, except when a presentation of all liabilities in order of liquidity provides information that is reliable and more relevant.
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.
Current liability means that the company-type stock exchange expects to settle the liability in its normal operating cycle; that it holds the liability primarily for the purpose of trading; that 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 that 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. As a minimum, current liabilities shall include the following liability line items:
- 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 name of the lending bank, the interest rate range, the maturity date, and the guarantee status shall be noted based on the type of borrowing. If collateral is provided, the name and carrying amount of the collateral shall be stated.
- Borrowings from financial institutions, shareholders, employees, related parties, and other individuals or institutions shall be separately noted.
- Short-term bills payable:
- Short-term bills issued through financial institutions to acquire funds from the money market, including commercial paper payable and bankers' acceptances.
- Short-term bills payable shall be measured at amortized cost using the effective interest method. However, short-term bills payable with no stated interest rate may be measured at the original face amount if the effect of discounting is immaterial.
- For short-term bills 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.
- Financial liabilities at fair value through profit or loss – current:
- Financial liabilities held for trading:
- Liabilities that are incurred principally for the purpose of repurchasing them in the near term.
- Liabilities that, upon initial recognition, are 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.
- Liabilities that are derivative financial liabilities, except for financial guarantee contracts or derivative financial liabilities that are designated and effective hedging instruments.
- Financial liabilities that are designated as measured at fair value through profit or loss.
- Financial liabilities at fair value through profit or loss shall be measured at fair value. However, with respect to a financial liability designated as at fair value through profit or loss, if the amount of change in the fair value of the financial liability is attributable to change in the credit risk, it shall be recognized in other comprehensive income, unless for the purpose of avoiding accounting mismatch or in the case of loan commitments and financial guarantee contracts, under which circumstances the amount of changes in fair value shall be recognized in profit or loss.
- Financial liabilities for hedging -- current: A financial liability that is a designated and effective hedging instrument under hedge accounting requirements.
- Contract liability: Means an entity's obligation to transfer goods or services to a customer for which the entity has received or is entitled to receive consideration from the customer under the terms and conditions of a contract.
- Trade payables:
- Refers to payables resulting from principal business operations.
- 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.
- Trade payables arising from operating activities shall be presented separately from other payables arising from non-operating activities.
- Payables to related parties in significant amounts shall be presented separately.
- If collateral has been provided for trade payables, the name and carrying amount of the collateral shall be noted.
- Other payables: Payables other than notes payable and 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.
- Current tax liabilities: Unpaid tax for current and prior periods.
- Provisions -- current:
- Refers to any liability of uncertain timing or amount.
- Provisions shall be accounted for in accordance with IAS 37.
- A provision shall be recognized when a company-type stock exchange 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 company-type stock exchange shall disaggregate provisions into provisions for employee benefits and other items in the notes to the financial reports.
- 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.
- Other current liabilities: Current liabilities not attributable to any of the classes above.
Non-current liabilities means liabilities other than current liabilities. As a minimum, non-current liabilities shall include the following liability line items:
- Bonds payable (including overseas bonds): Refers to bonds issued by a company-type stock exchange:
- For issued bonds, 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.
- Long-term borrowings:
- Includes long-term borrowings from banks and other long-term borrowings or borrowings repaid in installments. 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 borrowings from shareholders, employees, and related parties shall be noted separately.
- Long-term notes payable and other long-term payables shall be measured at amortized cost using the effective interest method.
- Lease liabilities:
- Means the present value of the lease payments that the lessee has not paid.
- Lease liabilities shall be accounted for in accordance with IFRS 16.
- Deferred tax liabilities: The amounts of income taxes payable in future periods in respect of taxable temporary differences.
- Settlement and clearing credit items: An item used by a company-type stock exchange for its securities settlement and clearing operations:
- Deposits received for settlement and clearing funds: A contra item to the "settlement and clearing funds" on the assets side. The nature, content, utilization, and pledge status of these deposited funds shall be indicated in the notes to the financial reports.
- Settlement prices: Settlement amounts payable to securities firms.
- Other non-current liabilities: Non-current liabilities not attributable to any of the classes above:
The items described in the preceding two paragraphs in relation to financial liabilities at fair value through profit or loss, financial liabilities for hedging, trade payables, and other payables shall be accounted for in accordance with IFRS 9.
With respect to the items described in paragraphs 3 and 4 in relation to financial liabilities at fair value through profit or loss, financial liabilities for hedging, trade payables, other payables, liabilities directly associated with non-current assets held for sale, bonds payable, and long-term borrowings, the measurement and disclosure of fair value shall be made in accordance with IFRS 13.
The items described in paragraph 3 and paragraph 4 in relation to financial liabilities at fair value through profit or loss, contract liability, financial liabilities for hedging, lease liabilities, and provisions shall be distinguished as current and non-current based on liquidity.
|
|
| Article 13 | Equity items, their components, and information to be disclosed in the balance sheet are as follows:
- Equity attributable to owners of the parent:
- Share capital:
- Capital contributed by shareholders to a company-type stock exchange 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 company-type stock exchange held by the company-type stock exchange 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.
- If convertible preferred shares or overseas depositary receipts are issued, the issuing area, issuance and conversion methods, converted amount, and special conditions shall be disclosed.
- Capital surplus: Means the equity components of financial instruments issued by a company-type stock exchange or premiums resulting from share capital transactions between a company-type stock exchange 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.
- Retained earnings (or accumulated deficit): Refers to equity resulting from operating activities, including legal reserves, special reserves, and undistributed earnings (or deficit to be offset):
- Legal reserve: A fixed-percentage reserve appropriated as required by the Company Act.
- 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.
- Undistributed earnings (or deficit to be offset): Undistributed and unappropriated earnings ("deficit to be offset" is deficit not yet offset).
- An earnings distribution or offsetting of deficit shall not be accounted for unless and until approved by a regular 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.
- 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, financial assets measured at fair value through other comprehensive profit or loss, and of revaluation surplus.
- 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.
- Non-controlling interest:
- The equity in a subsidiary not attributable, directly or indirectly, to a parent.
- For each business combination, the components of non-controlling interest in the acquiree shall be measured in accordance with IFRS 3.
- A company-type stock exchange shall disclose information on any subsidiary in which it has a non-controlling interest of materiality and on the non-controlling interest in accordance with IFRS 12.
A company-type stock exchange may elect to recognize the remeasurements of defined benefit plans in retained earnings or other equity, and disclose the accounting policy in the notes. Remeasurements of defined benefit plans that have been recognized in other equity may not be reclassified into profit or loss or transferred into retained earnings in a subsequent period.
|
|
Section II Statement of Comprehensive Income
|
| Article 14 | A company-type stock exchange 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 company-type stock exchange 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 company-type stock exchange shall disclose their nature and amount separately in the financial statements or in the notes.
As a minimum, the statement of comprehensive income shall include the following line items:
- Revenue:
- Exchange fee revenue: Revenue from exchange fees paid to a company-type stock exchange on a monthly basis and at an approved rate by securities brokers based on the volume of customer trades or by securities dealers based on the volume of proprietary trades made for their own accounts.
- Securities listing fee revenue: Revenue from listing fees paid to a company-type stock exchange by listed companies based on their paid-in capital in accordance with the Agreement for Listing of Securities.
- On-line processing fee revenue: Revenue from stipulated fees paid by securities firms for using the computer equipment of a company-type stock exchange in relation to the centralized securities market.
- Information usage fee revenue: Revenue from stipulated fees paid by institutions such as securities firms, futures commission merchants, and domestic and foreign information companies for using the information transmitted by a company-type stock exchange.
- Data processing fee revenue: Revenue from stipulated fees paid by the Taipei Exchange for the processing of data by a company-type stock exchange on its behalf.
- Other revenue: Revenues not attributable to any of the items above.
- The recognition and measurement of revenue from contracts with customers shall be made in accordance with IFRS 15. If a company-type stock exchange 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.
- Operating expense: The expenses to be borne as a result of operating activities in the period, including employee benefits expense, depreciation and amortization expense, and other operating expense.
- Net profit or loss upon derecognition of financial assets measured at amortized cost: Means the net profit or less that arises when a company-type stock exchange derecognizes from its books financial assets measured at amortized cost that it had originally recognized.
- 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.
- Expected credit impairment loss (or gain): The expected amount of credit loss (or reversal) according to IFRS 9.
- 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 a company-type stock exchange recognizes using the equity method according to its share in the associates and the interests in joint ventures.
- Net profit or loss upon reclassification of financial assets: Means one of the following conditions, in accordance with IFRS 9:
- 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.
- 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.
- 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.
- 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.
- Profit or loss during the period: Earnings or deficit in the current reporting period.
- Other comprehensive income: Refers to 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:
- 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.
- 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.
- Total comprehensive income.
- Allocations of profit or loss during the period attributable to non-controlling interest and owners of the parent.
- Allocations of total comprehensive income during the period attributable to non-controlling interest and owners of the parent.
- Earnings per share:
- 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.
|
|
Section III Statement of Changes in Equity
|
| Article 15 | As a minimum, the statement of changes in equity shall include the following:
- Total comprehensive income during the period, showing separately the total amounts attributable to owners of the parent and to non-controlling interest.
- For each component of equity, the effects of retrospective application or retrospective restatement recognized in accordance with IAS 8.
- For each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period, separately disclosing changes resulting from:
- net profit (or net loss) for the period;
- other comprehensive income; and
- transactions with owners in their capacity as owners, showing separately contributions by and distributions to owners and changes in ownership interests in subsidiaries that do not result in a loss of control.
A company-type stock exchange shall present, either in the statement of changes in equity or in the notes, the amount of dividends recognized as distributions to owners during the period, and the related amount of dividends per share.
|
|
Section IV Statement of Cash Flows
|
| Article 16 | A statement of cash flows provides users of financial statements with a basis to assess the ability of the company-type stock exchange to generate cash and cash equivalents and the needs of the company-type stock exchange to utilize those cash flows. Namely, it presents, through inflows and outflows of cash and cash equivalents, a summary report on the operating, investing and financing activities of the company-type stock exchange during the period. The presentation and disclosure of cash flow information shall be made in accordance with IAS 7.
|
|
Section V Notes
|
| Article 17 | To meet the objective of presenting full and complete information about the financial position, financial performance, and cash flows of a company-type stock exchange, financial reports shall contain explanatory notes disclosing the following:
- History and scope of business operations of the company-type stock exchange.
- 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.
- The date when the financial reports were authorized for issue and the process involved in authorizing the financial reports for issue.
- 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 recognized by the FSC.
- A summary of significant 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.
- Significant accounting judgments, estimations, and assumptions, as well as information about the assumptions it makes and other major sources of estimation uncertainty.
- Objectives, policies and processes for managing capital, and any change in capital structure, including funding, liability, and equity.
- 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.
- If it is necessary to provide the basis of valuation for any amount, financial instrument, or other item presented in the financial reports, the basis of valuation shall be noted.
- 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.
- Criteria for classifying assets and liabilities into current and non-current.
- Material contingent liabilities and unrecognized contractual commitments.
- Financial risk management objectives and policies.
- Long-term and short-term borrowings.
- The addition, expansion, construction, lease, obsolescence, idling, sale, transfer, or long-term renting of major assets.
- Principal investments in other enterprises.
- Significant transactions with related parties.
- Losses due to major disasters.
- Major litigation pending or concluded.
- The signing, completion, voidance, or lapse of major contracts.
- Information about financial instruments. The information shall be disclosed in accordance with IFRS 7, including disclosure of the significance of financial instruments for the the company-type securities exchange's financial position and performance; qualitative and quantitative disclosures describing risk exposures arising from financial instruments.
- 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, significant judgments and changes in the judgments, and any assets recognized from the costs to obtain or fulfil a contract with a customer.
- Relevant information about leases. The information shall be disclosed in accordance with IFRS 16, including disclosure of information that gives a basis for users of the financial statements to assess the effect that the leases have on the financial position, financial performance, and cash flows of the company-type stock exchange, and relevant qualitative and quantitative information about its leasing activities.
- Major organizational adjustments and significant management reforms.
- 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, and 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.
- Segment financial information in accordance with IFRS 8, including the scope of business, revenue, and gains and losses of each reportable segment.
- Any research and development project funded by another party and the amount.
- Information about investments in derivative instruments.
- When subsidiaries hold shares in the parent, the names of the subsidiaries and the shareholdings, amounts, and reasons shall be separately presented.
- In the case of private placement of securities, the type, issue date, and amount shall be disclosed.
- Material effects of changes in government laws and regulations.
- Material effects of discontinuance of operations.
- 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.
- Foreign-currency-denominated assets and liabilities that have significant influence: 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.
- Supporting information for items presented in the balance sheet and in the statements of comprehensive income, of changes in equity and of cash flows, or other necessary descriptions essential for avoiding misunderstanding by users or for the fair presentation of the financial reports.
|
|
| Article 18 | Financial reports shall include explanatory notes on the following subsequent events that occur between the balance sheet date and the date when the financial reports are authorized for issue:
- Change in capital structure.
- Large long-term or short-term borrowings.
- The addition, expansion, construction, lease, obsolescence, idling, sale, pledge, transfer, or long-term renting of major assets.
- Principal investments in other enterprises.
- Losses due to major disasters.
- Major litigation pending or concluded.
- The signing, completion, voidance, or lapse of major contracts.
- Major organizational adjustments and significant management reforms.
- Material effects of changes in government laws and regulations.
- Other major events or measures capable of affecting future financial position, financial performance, and cash flows.
|
|
| Article 19 | A company-type stock exchange shall separately disclose in the notes to the financial reports information on the following events between the company-type stock exchange and its subsidiaries during the current period, and on parent-subsidiary transactions:
- Information on significant transactions:
- Lending funds to others.
- Providing endorsements or guarantees for others.
- Holding of securities at the end of the period (excluding the portion held due to investment in a subsidiary or an associate, and the portion held due to an interest in a joint venture).
- Aggregate purchases or sales of the same securities reaching NT$100 million or 20 percent of paid-in capital or more.
- Acquisition of real estate reaching NT$300 million or 20 percent of paid-in capital or more.
- Disposal of real estate reaching NT$300 million or 20 percent of paid-in capital or more.
- Purchases or sales of goods from or to related parties reaching NT$100 million or 20 percent of paid-in capital or more.
- Accounts receivable from related parties reaching NT$100 million or 20 percent of paid-in capital or more.
- Trading in derivative instruments.
- Others: The business relationship between the parent and the subsidiaries and between each subsidiary, and the circumstances and amounts of any significant transactions between them.
- Information on investees:
- If the company-type stock exchange directly or indirectly exercises significant influence or control over, or has a joint venture interest in, an investee company, it shall disclose information on the investee company, showing the name, location, principal business activities, original investment amount, shareholding at the end of the period, profit or loss for the period, and recognized investment gain or loss.
- The company-type stock exchange is exempted from the requirements of items A to D of the preceding subparagraph when the investee company it controls directly or indirectly is a financial, insurance, or securities enterprise.
If the shares issued by a company-type stock exchange have a par value other than NT$10, for the calculation of a transaction amount of 20 percent of paid-in capital under subparagraph 1, items D to H of the preceding paragraph, 10 percent of the equity attributable to owners of the parent as stated in the balance sheet shall be substituted.
|
|
| Article 20 | A company-type stock exchange shall fully disclose information on related party transactions in accordance with IAS 24, and the following provisions shall be complied with:
- The name and relationship of the related party shall be presented.
- If the transaction amount or balance of any single related party reaches 10 percent or more of the company-type stock exchange's total transaction amount or balance of that type of transaction, the name of each such related party shall be individually presented.
In considering whether a counterparty is a related party, attention shall be directed to the substance of the relationship in addition to the legal form. Unless it can be established that no control, joint control, or significant influence exists, a party falling within any of the following shall be deemed to have a substantive related party relationship, and relevant information shall be disclosed in the notes to the financial reports in accordance with IAS 24:
- An affiliated enterprise within the meaning given in Chapter VI-I of the Company Act, and any of its directors, supervisors, and managerial officers.
- A company or institution governed by the same general management office as the company-type stock exchange, and any of its directors, supervisors, and managerial officers.
- A person holding the position of manager or higher in the general management office.
- A company or institution shown as an affiliated enterprise in the company-type stock exchange's publications or public announcements.
- Another company or institution whose board chairman or president is the same person as, or is the spouse or a relative within the second degree of kinship of, the board chairman or president of the company-type stock exchange.
|
|
Section VI Titles of Financial Statements |
| Article 21 | Titles and forms of financial statements are as follows:
- Balance sheet (Forms 1 and 1-1).
- Statement of comprehensive income (Forms 2 and 2-1).
- Statement of changes in equity (Form 3).
- Statement of cash flows (Form 4).
- Schedules to the financial reports (Forms 5-1 to 5-10).
|
|