|
Article 17
|
A securities firm shall present all items of income and expense recognized in a period in a single statement of comprehensive income displaying components of profit or loss and components of other comprehensive income.
A securities firm shall present expenses recognized in profit or loss under the preceding paragraph using a classification based on their nature.
When items of income or expense are material, a securities firm shall disclose their nature and amount separately in the statement of comprehensive income or in the notes.
As a minimum, the statement of comprehensive income shall include the following line items, with the related details disclosed in the notes:
- Income:
- Brokerage fee revenue: Revenue from handling fees received by a securities firm for executing customer orders, during short sale or securities lending operations, or for the provision of agency services for transactions in emerging stocks.
- Revenue from underwriting business: Remuneration from underwriting securities on a firm commitment basis, handling fee revenue from underwriting securities on a best-efforts basis, revenue from underwriting processing fees, and revenue from underwriting advisory fees.
- Net gains (losses) on issuance of call (put) warrants: A securities firm's net gains or losses arising from changes in fair value of liabilities for call (put) warrants and of repurchased call (put) warrants, gains on exercise of call (put) warrants before maturity, and gains on expired call (put) warrants, less related fees incurred by the securities firm for issuing call (put) warrants.
- Net gains (losses) on sale of securities held for operations: The net amount after offsetting all gains and losses arising from the sale of securities held for operations by the dealing and underwriting segments.
- Net gains (losses) on measurement at fair value through profit or loss for securities held for operations: The net amount after offsetting all gains and losses arising from the fair value measurement of securities held for operations that are acquired by the dealing and underwriting segments.
- Realized net gains or losses from debt instrument investments measured at fair value through other comprehensive income: The net amount after offsetting all gains and losses arising from the sale by a securities firm of debt instruments measured at fair value through other comprehensive income.
- Net gains or losses from reclassification of financial assets: Means gains or losses that meet one of the following conditions in accordance with IFRS 9:
- Net gains or losses from reclassification from measurement at amortized cost to measurement at fair value through profit or loss.
- Cumulative net gains or losses from reclassification from measurement at fair value through other comprehensive income to measurement at fair value through profit or loss.
- Expected credit impairment losses and reversal gains: the amount of expected credit impairment losses (or reversals) recognized in accordance with IFRS 9.
- Gains or losses arising from derecognition of financial assets measured at amortized cost: Means gains or losses arising when a securities firm derecognizes from its books financial assets measured at amortized cost that it had originally recognized.
- Net gains (losses) on the covering of securities borrowing and short sales of bonds with reverse repurchase agreements: In the case of a securities firm engaging in securities borrowing or outright sale of government bonds acquired under reverse repurchase agreements, the net amount after offsetting all gains arising from a decline in the market price of the given security when the trade is covered at maturity with all losses arising from an increase in the market price of the given security when the trade is covered at maturity.
- Net gains (losses) on measurement at fair value through profit or loss for securities borrowing and short sales of bonds with reverse repurchase agreements: In the case of a securities firm engaging in securities borrowing or outright sale of government bonds acquired under reverse repurchase agreements, the net amount after offsetting all gains and losses from measuring relevant items at fair value.
- Interest revenue: Interest revenue that a securities firm derives from its margin purchase or money lending business or otherwise related to its business activities.
- Net income from wealth management business: In the case of a securities firm engaging in wealth management business, the net amount of the resultant revenues less related expenditures.
- Net gains (losses) on derivative instruments: In the case of a securities firm engaging in domestic or foreign derivative instrument business or hedging transactions, the net amount after offsetting the resultant gains and losses.
- Other operating income: Operating revenues and gains 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 securities firm controls specific services before it transfers the 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.
- Handling fee expenses: Includes broker's exchange fees, dealer's exchange fees, and underwriting handling fees that a securities firm is required to pay to the TWSE or the TPEx.
- Employee benefits expenses:
- Expenses in relation to employee benefits that IAS19 requires to be recognized, including short-term employee benefits (such as wages, salaries, and labor and national health insurance contributions for employees), post-employment benefits (such as pensions), other long-term employee benefits (such as long-service leave), and termination benefits (such as early retirement incentive programs).
- If the post-employment preferential deposit interest rate that a securities firm has offered to an employee in accordance with its internal rules or as stipulated in the employment contract is higher than the prevailing interest rate on the market, IAS 19 shall apply to the excess portion of the interest upon the employee's retirement.
- Depreciation and amortization expenses: Related depreciation and amortization expenses that IAS16 and IAS38 require to be 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.
- Other operating expenses: Operating expenses required for a securities firm's business management needs and not attributable to any of the items above.
- 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 securities firm recognizes using the equity method according to its share in the associates and the interests in joint ventures.
- 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: 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:
- 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 or losses from debt instrument investments measured at fair value through other comprehensive income, and gains and losses from hedging instruments.
- Items not to be reclassified into profit or loss: Include revaluation surplus, unrealized valuation gains and losses from equity instrument investments measured at fair value through other comprehensive income, remeasurements of defined benefit plans, and gains and losses from 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.
|