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Title：

Regulations Governing the Preparation of Financial Reports by Company-Type Stock Exchanges  CH

Amended Date： 2018.07.27 
Article Content Chapter Content Search Article No. Search Legal Basis Amended Article Legislative History Chinese

Title： Regulations Governing the Preparation of Financial Reports by Company-Type Stock Exchanges(2011.12.30)
Date： 
   Chapter I General Principles
Article 1    These Regulations are adopted under Article 14, paragraph 2 of the Securities and Exchange Act (the "Act").
Article 2    The financial reports of a stock exchange organized as a company ("company-type stock exchange") shall be prepared in accordance with these Regulations and other applicable laws and regulations. Matters not provided for therein shall be governed by generally accepted accounting principles (GAAP).
    The GAAP described in the preceding paragraph shall mean the following, as recognized by the Financial Supervisory Commission (FSC) of the Executive Yuan: International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and Interpretations developed by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC).
Article 3    A company-type stock exchange shall establish an accounting system based on the nature of its accounting matters, the actual conditions and development of its business, and its management needs.
    The accounting system referred to in the preceding paragraph shall separately provide the following items, based on the nature of the company-type stock exchange's business operations:
  1. A general description of the accounting system.
  2. A chart of journals and ledgers.
  3. Descriptions and uses of accounting items, accounting documents, account books, and accounting statements.
  4. General accounting procedures.
  5. Other items required by the FSC.
Article 4    The appointment and discharge of the in-charge accountant of a company-type stock exchange shall be approved by a majority of the directors present at a board of directors meeting attended by a majority of the directors, and shall be reported to the FSC for approval or recordation within 5 days after appointment or change.
Article 5    A company-type stock exchange shall use the calendar year as its financial year, with accounts closed on June 30 for the first half of the financial year and on December 31 for the whole financial year.
    The accrual basis of accounting shall be used.
    Accounts shall be expressed in New Taiwan Dollars (NT$).
    The dollar amounts in the financial statements may be presented in thousands of NT dollars rounded to the nearest thousand.
Article 6    "Financial reports" shall mean financial statements, statements of major accounting items, and any other disclosures and explanatory information within the scope of these Regulations that are helpful to the decision making of 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.
    A company-type stock exchange, unless newly established, or under any of the circumstances set out in paragraph 4 herein, or as 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 company-type stock exchange's chairperson, managerial officer, and principal accounting officer.
    When a company-type stock exchange applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements, it shall do so in accordance with paragraphs 10 and 39 of IAS 1.
Article 7    Financial reports shall present fairly the financial position, financial performance, and cash flows of a company-type stock exchange without being misleading to an interested party in making judgments and decisions.
    If a financial report violates these Regulations or any other applicable requirements, for which the FSC as a result of an audit gives a notice of adjustment, the company-type stock exchange shall make the required adjustment and correction. If the corrected amount of the post-tax profit or loss is NT$10 million or more, and is also 1 percent or more of the originally stated net operating revenue after final accounting or 5 percent or more of paid-in capital, the financial report shall be restated and submitted to the FSC.
Article 8    The following shall apply when a company-type stock exchange makes an accounting change:
  1. Change in accounting policy:
    1. When a company-type stock exchange changes an accounting policy voluntarily in a new financial year in order to produce financial reports that provide reliable and more relevant information about the effects of transactions or other events or conditions on its financial position, financial performance, or cash flows, it shall request a certified public accountant (CPA) to provide an item-by-item analysis and review opinion on the reasonableness of the nature of the change in accounting policy, the reasons why applying the new accounting policy provides reliable and more relevant information, each line item affected and the estimated effect for the financial year preceding the earliest financial year affected by retrospective application of the new accounting policy, and the actual effect on the opening balance of retained earnings for the immediately preceding financial year. These shall be submitted as a proposal for adoption by resolution of the board of directors, after which they shall be submitted to the FSC for approval.
    2. If, for the voluntary change in accounting policy in the new financial year, it is impracticable to determine either the period-specific effects or the cumulative effect of the change, as described in paragraph 23 of IAS 8, the company-type stock exchange shall calculate the effects in accordance with paragraph 24 of IAS 8 and the preceding item above, and shall request a CPA to provide an item-by-item analysis and review opinion on the reasonableness of the reasons why retrospective application is impracticable and how and from when the change in accounting policy has been applied, and also provide an opinion on the impact on the audit opinion for the financial year preceding the change in accounting policy. The company-type stock exchange shall then follow the procedure described above.
    3. Unless it is impracticable to determine the effects as described in the preceding item, then within 2 months after the beginning of the financial year in which the new accounting policy is adopted, the company-type stock exchange shall calculate the line items affected and the actual effect for the financial year preceding the earliest financial year affected by retrospective application of the new accounting policy and the actual effect on the opening balance of retained earnings for the immediately preceding financial year, and shall submit those to the board of directors, after which they shall be submitted to the FSC for recordation. If the difference between the actual effect of the change in accounting policy and the original estimated effect is NT$10 million or more, and is also 1 percent or more of net operating revenues for the immediately preceding financial year, or 5 percent or more of paid-in capital, the company-type stock exchange shall analyze the reasons for the difference and request a CPA to provide an opinion on its reasonableness. The analysis and the CPA's opinion shall also be filed with the FSC for recordation.
    4. Except when applying a new accounting policy to newly purchased assets, in which case the provisions of the preceding items need not be applied, if a change in accounting policy is applied without having been duly filed for approval, the financial reports for the financial year in which the new accounting policy was applied shall be restated, and the new accounting policy may only be applied from the next financial year after a supplementary filing has been made and approved.
  2. Any matter among accounting estimates in relation to a change in the useful life or depreciation method of depreciable assets, a change in the amortization period or amortization method of intangible assets, or a change in the residual value of any such assets shall also be governed by the applicable provisions of items 1 and 4 of the preceding subparagraph.
Article 9    A company-type stock exchange shall prepare consolidated financial reports in accordance with Chapter II of these Regulations and IAS 27, and shall prepare annual parent company only financial reports in accordance with Chapter IV of these Regulations.
    A company-type stock exchange that does not have a subsidiary shall prepare individual financial reports in accordance with Chapter II of these Regulations, and when preparing annual financial reports shall also prepare statements of major accounting items in accordance with Article 24 of these Regulations.
    A company-type stock exchange preparing interim financial reports shall follow the provisions of Chapters II and III of these Regulations as well as IAS 34.
Article 10    The meaning of "parent," "subsidiary," and "associate" as used in these Regulations shall be determined in accordance with IAS 27 and IAS 28.
    The meaning of "control," "significant influence," or "joint control" as used in these Regulations shall be determined in accordance with IAS 27, IAS 28, and IAS 31.
 
   Chapter II Financial Reports
      Section I Balance Sheet
Article 13    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 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.
    2. 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.
    3. Retained earnings (or accumulated deficit): Equity resulting from operating activities, including legal reserves, special reserves, and undistributed earnings (or deficit to be offset).
      1. Legal reserve: A fixed-percentage reserve appropriated as required by the Company Act.
      2. 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.
      3. Undistributed earnings (or deficit to be offset): Undistributed and unappropriated earnings ("deficit to be offset" is deficit not yet offset).
      4. 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.
    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.
 
      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:
  1. Revenue:
    1. 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.
    2. 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.
    3. Computer equipment usage 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.
    4. 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.
    5. Data processing fee revenue: Revenue from stipulated fees paid by the GreTai Securities Market for the processing of data by a company-type stock exchange on its behalf.
    6. Other revenue: Revenues not attributable to any of the items above.
          The recognition and measurement of revenue shall be made in accordance with IAS 18.
  2. 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.
  3. 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.
  4. 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 company-type stock exchange recognizes using the equity method according to its share in the associates and jointly controlled entities.
  5. 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.
  6. 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.
  7. Profit or loss for the period: Earnings or deficit in the current reporting period.
  8. 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 valuation gains and losses from available-for-sale financial assets, the effective portion of gains and losses on hedging instruments in a cash flow hedge, and actuarial gains and losses on defined benefit plans.
  9. Share of the other comprehensive income of associates and joint ventures accounted for using the equity method.
  10. Total comprehensive income.
  11. Allocations of profit or loss for the period attributable to non-controlling interest and owners of the parent.
  12. Allocations of total comprehensive income for the period attributable to non-controlling interest and owners of the parent.
  13. 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.
    14.     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:
  1. total comprehensive income for the period, showing separately the total amounts attributable to owners of the parent and to non-controlling interest;
  2. for each component of equity, the effects of retrospective application or retrospective restatement recognized in accordance with IAS 8; and
  3. 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:
    1. net profit (or net loss) for the period;
    2. other comprehensive income; and
    3. 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 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:
  1. History and scope of business operations of the company-type stock exchange.
  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 recognized by the FSC.
  5. 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.
  6. Significant 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, the 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. Significant transactions with related parties.
  18. Losses due to major disasters.
  19. Major litigation pending or concluded.
  20. The signing, completion, voidance, or lapse of major contracts.
  21. Major organizational adjustments and significant management reforms.
  22. Information about employee benefits.
  23. Any research and development project funded by another party and the amount.
  24. Information about investments in derivative instruments.
  25. When subsidiaries hold shares in the parent, the names of the subsidiaries and the shareholdings, amounts, and reasons shall be separately presented.
  26. In the case of private placement of securities, the type, issue date, and amount shall be disclosed.
  27. Material effects of changes in government laws and regulations.
  28. Material effects of discontinuance of operations.
  29. 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:
  1. Change in capital structure.
  2. Large long-term or short-term borrowings.
  3. The addition, expansion, construction, lease, obsolescence, idling, sale, pledge, transfer, or long-term renting of major assets.
  4. Principal investments in other enterprises.
  5. Losses due to major disasters.
  6. Major litigation pending or concluded.
  7. The signing, completion, voidance, or lapse of major contracts.
  8. Major organizational adjustments and significant management reforms.
  9. Material effects of changes in government laws and regulations.
  10. 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:
  1. 1. Information on significant transactions:
    1. (1) Lending funds to others.
    2. (2) Providing endorsements or guarantees for others.
    3. (3) Holding of securities at the end of the period.
    4. (4) Aggregate purchases or sales of the same securities reaching NT$100 million or 20 percent of paid-in capital or more.
    5. (5) Acquisition of real estate reaching NT$100 million or 20 percent of paid-in capital or more.
    6. (6) Disposal of real estate reaching NT$100 million or 20 percent of paid-in capital or more.
    7. (7) Purchases or sales of goods from or to related parties reaching NT$100 million or 20 percent of paid-in capital or more.
    8. (8) Accounts receivable from related parties reaching NT$100 million or 20 percent of paid-in capital or more.
    9. (9) Trading in derivative instruments.
    10. (10) 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.
  2. 2. Information on investees: If the company-type stock exchange directly or indirectly exercises significant influence or control over 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.
    3.     The company-type stock exchange is exempted from the requirements of items (1) to (4) of the preceding subparagraph when the investee company it controls directly or indirectly is a financial, insurance, or securities enterprise.
Article 20    A company-type stock exchange shall fully disclose information on related party transactions in accordance with IAS 24. 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 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:
  1. An affiliated enterprise within the meaning given in Chapter VI-I of the Company Act, and any of its directors, supervisors, and managerial officers.
  2. 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.
  3. A person holding the position of manager or higher in the general management office.
  4. A company or institution shown as an affiliated enterprise in the company-type stock exchange's publications or public announcements.
 
      Section VI Titles of Financial Statements
Article 21    Titles and forms of financial statements are as follows:
  1. Balance sheet (Form 1).
  2. Statement of comprehensive income (Form 2).
  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 5-9).
 
      Chapter III Interim Financial Reports
Article 22    financial reports shall include interim financial reports for each of the following periods:
  1. Balance sheets as of the end of the current interim period, as of the end of the immediately preceding financial year, and as of the end of the comparable interim periods of the immediately preceding financial year.
  2. Statements of comprehensive income for the current interim period, for the current financial year to the end of the current interim period, for the comparable interim periods of the immediately preceding financial year, and for the immediately preceding financial year to the end of the comparable interim periods.
  3. Statement of changes in equity for the current financial year to date, with a statement of changes in equity for the same period of the immediately preceding financial year.
  4. Statement of cash flows for the current financial year to date, with a statement of cash flows for the same period of the immediately preceding financial year.
 
   Chapter IV Parent Company Only Financial Reports
Article 23    A company-type stock exchange 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.
Article 24    A company-type stock exchange 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, liabilities, and equity items:
    1. Statement of cash and cash equivalents (Form 6-1).
    2. Statement of financial assets at fair value through profit or loss ??current (Form 6-2).
    3. Statement of available-for-sale financial assets ??current (Form 6-3).
    4. Statement of derivative financial assets for hedging ??current (Form 6-4).
    5. Statement of financial assets measured at cost ??current (Form 6-5).
    6. Statement of bond investment for which no active market exists ??current (Form 6-6).
    7. Statement of trade receivables (Form 6-7).
    8. Statement of other receivables (Form 6-8).
    9. Statement of prepayments (Form 6-9).
    10. Statement of non-current assets held for sale (Form 6-10).
    11. Statement of other current assets (Form 6-11).
    12. Statement of changes in financial assets at fair value through profit or loss ??non-current (Form 6-12).
    13. Statement of available-for-sale financial assets ??non-current (Form 6-13).
    14. Statement of held-to-maturity financial assets ??current (Form 6-14).
    15. Statement of changes in derivative financial assets for hedging ??non-current (Form 6-15).
    16. Statement of financial assets measured at cost ??non-current (Form 6-16)
    17. Statement of bond investment for which no active market exists ??non-current (Form 6-17)
    18. Statement of changes in investments accounted for using the equity method (Form 6-18).
    19. Statement of changes in accumulated impairment of investments accounted for using the equity method (Form 6-19).
    20. Statement of changes in property and equipment (Form 6-20).
    21. Statement of changes in accumulated depreciation of property and equipment (Form 6-21).
    22. Statement of changes in accumulated impairment of property and equipment (Form 6-22).
    23. Statement of changes in investment property (Form 6-23).
    24. Statement of changes in accumulated depreciation of investment property (Form 6-24).
    25. Statement of changes in accumulated impairment of investment property (Form 6-25).
    26. Statement of changes in intangible assets (Form 6-26).
    27. Statement of deferred tax assets (Form 6-27).
    28. Statement of other non-current assets (Form 6-28).
    29. Statement of short-term borrowings (Form 7-1).
    30. Statement of short-term bills payable (Form 7-2).
    31. Statement of financial liabilities at fair value through profit or loss ??current (Form 7-3).
    32. Statement of derivative financial liabilities for hedging ??current (Form 7-4).
    33. Statement of financial liabilities measured at cost (Form 7-5).
    34. Statement of trade payables (Form 7-6).
    35. Statement of other payables (Form 7-7).
    36. Statement of provisions ??current (Form 7-8).
    37. Statement of liabilities directly associated with non-current assets held for sale (Form 7-9).
    38. Statement of other current liabilities (Form 7-10).
    39. Statement of changes in financial liabilities at fair value through profit or loss ??non-current (Form 7-11).
    40. Statement of derivative financial liabilities for hedging ??non-current (Form 7-12).
    41. Statement of bonds payable (Form 7-13).
    42. Statement of long-term borrowings (Form 7-14).
    43. Statement of provisions ??non-current (Form 7-15).
    44. Statement of deferred tax liabilities (Form 7-16).
    45. Statement of other non-current liabilities (Form 7-17).
  2. Statements of profit or loss items:
    1. Statement of operating revenue (Form 8-1).
    2. Statement of operating expense (Form 8-2).
    3. Statement of finance costs (Form 8-3).
  3. Statement of settlement and clearing funds (Form 9).
  4. Statement of settlement and clearing funds and bank credit lines (Form 10).
  5. Statement of receipts, payments, and use of settlement and clearing funds (Form 11).
    A company-type stock exchange 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.
 
   Chapter V First-time Adoption
Article 25    IFRS 1 applies when a company-type stock exchange first adopts IFRS.
    Except when electing to use the deemed cost exemption in accordance with Article 26 below, the company-type stock exchange shall apply IAS 40, IAS 16, IAS 38, and IFRS 6 retrospectively to investment property, property and equipment not classified as for investment or held for sale, and intangible assets in accordance with the preceding paragraph at the date of transition to IFRS.
Article 26    A company-type stock exchange electing to use the deemed cost exemption described in IFRS 1 shall be subject to the following:
  1. If all items of investment property are used for non-operating purposes and there is sufficient evidence that they are continuously being rented out and can generate a stable cash flow in the medium or long term, the company-type stock exchange may use the fair value of such an item of investment property as its deemed cost, with the amount estimated from the contractual rent of the investment property using the discounted cash flow method as the cap and the company-type stock exchange's weighted average cost of capital as the discount rate.
  2. For an item of investment property that does not fall within the scope of the preceding subparagraph allowing the use of fair value as deemed cost, of property and equipment not classified as for investment or held for sale, or of intangible assets, the company-type stock exchange may only elect to use a previous GAAP revaluation of that item as deemed cost at the date of the revaluation.

    The company-type stock exchange shall disclose in the notes the election of deemed cost, the assumptions and methodology used to determine the fair value, and the weighted average cost of capital as described in the preceding paragraph.
    When electing to use the fair value of an item of investment property as its deemed cost as described in subparagraph 1, paragraph 1, the company-type stock exchange shall obtain the appraisal from a certified ROC real estate appraiser who satisfies the following conditions:
  1. The appraiser must have at least 2 years of experience practicing in the field of real estate appraisal.
  2. The appraiser does not have a record of poor credit in negotiable instruments or debts during the most recent 3 years, or a record of being subject to disciplinary action by a real estate appraiser disciplinary board during the most recent 5 years.
  3. The appraiser may not have a related party or substantive related party relationship with the company-type stock exchange.
  4. The appraiser has had appraisal experience relevant to the investment property being appraised, in terms of geographical location and type, during the preceding year.
    The preceding article, and paragraph 1 through the preceding paragraph of this article, shall also apply to subsidiaries of the company-type stock exchange.
Article 26-1    For the financial assets or financial liabilities measured at cost upon initial recognition prior to the date of conversion, a company-type stock exchange 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 11 or 12 of these Regulations.
    Financial assets or financial liabilities not included in the preceding paragraph may not be reclassified on the date of conversion.
 
   Chapter VI Supplementary Provisions
Article 27    These Regulations shall be enforced from 1 January 2013.