Chapter I General Principles |
| Article 1 | These Regulations are promulgated pursuant to Article 36-1 of the Securities and Exchange Act ("the Act").
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| Article 2 | A public company shall prepare its financial forecasts in accordance with the provisions of these Regulations.
The term "financial forecasts" in the preceding paragraph means consolidated financial forecasts, provided that when a public company has no subsidiaries, it shall prepare individual financial forecasts.
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| Article 3 | A public company shall plan and prepare its financial forecast in accordance with the following provisions:
- It shall establish a comprehensive written budget system stating monthly cash, production, sales, cost, and capital budgets for reference in preparing the financial forecast.
- It shall form reasonable and appropriate assumptions in good faith, and exercise professional due diligence in appropriately disclosing relevant information.
- The forecast shall be carefully prepared by appropriate persons who are fully acquainted with the enterprise and the industry and who possess expertise in production, marketing, accounting, finance, research, environmental protection, engineering, or other areas, in order to ensure that the financial forecast information is of reasonable and reliable quality.
- Appropriate accounting principles shall be adopted for the preparation of the forecast, which shall also be consistent with the accounting treatment that was expected to be adopted at the time of the actual occurrence and account entry of the specific transaction. When the company management anticipates changes in accounting principles, those accounting principles shall be reflected in the financial forecast.
- It shall carefully and reasonably plan the cash and capital budget, addressing such matters as capital increase by issuing shares, issuing corporate bonds, long-term borrowings, or acquisition and disposal of major assets, to serve as a basis for preparing the financial forecast.
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| Article 4 | The financial forecast shall be submitted to the board of directors for approval after it has been fully prepared, provided that if it cannot be submitted to the board of directors for approval in time because of any circumstance under Article 6, it may be submitted for retroactive recognition at the following board of directors meeting.
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| Article 5 | A public company may publish its financial forecast by any of the following means:
- Summary financial forecast: publish key forecast information in accordance with the provisions of Chapter II.
- Complete financial forecast: publish a financial forecast in the format of a complete basic financial statement in accordance with the provisions of Chapter III.
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| Article 6 | When a public company, in a manner other than as provided in these Regulations, provides operating revenue or profit forecast information to news, magazine, radio, television, Internet, or other mass media, or announces such information at a meeting to present business performance, news conference, or other venue, the Financial Supervisory Commission (FSC) may require the company to publish a complete financial forecast in accordance with the provisions of Chapter III.
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| Article 7 | A public company that publishes a financial forecast in accordance with Article 5 shall file the forecast within 2 days commencing immediately from the date of publication.
A public company that must publish a financial forecast because of a circumstance under Article 6 shall publicly disclose and report within 10 days counting inclusively from the date it receives the notice to prepare the report.
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| Article 8 | A public company that publishes a financial forecast in accordance with these Regulations may publicly disclose it on the company website, and shall at the same time transmit it in the form of an electronic file to the information reporting website designated by the FSC.
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