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Article NO. Content


Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises  CH

Amended Date: 2000.10.17 
Article 17     The following particulars shall be included in the description of business transactions:
  1. Purchase (sale) of goods (Table 6):
    1. The total dollar amount of purchase (sale) transactions and the percentage it accounts for of total purchase (sale) transactions.
    2. Gross profit on sales.
    3. Transaction terms and conditions and a comparison with ordinary transaction terms and conditions.
    4. Period-end balances of accounts receivable (payable) and notes receivable (payable), and the percentage they account for of the total period-end balances of the same.
    5. If there were any instances of tardiness in accounts payable during the accounting year, the amounts and methods of treatment of such tardiness, and any allowances set aside for bad debt.
    6. Advance receipts (payments).
  2. Property transactions (Table 7):
    1. Name of the property, transaction date or date of factual occurrence, dollar amount of the transaction, terms of delivery or payment, and details of the receipt/payment of the transaction price.
    2. Losses and gains on disposal of property. (Losses and gains on acquisitions of property need not be stated.)
    3. Reasons for selecting the controlling company as the transaction counterpart.
    4. Information on the last preceding transfer.
    5. Method by which the transaction was decided upon and reference basis upon which the price was determined.
    6. The specific purpose of the acquisition or disposal and the usage status of the object of the transaction.
    7. Other special stipulations.
  3. Financing (Table 8):
    1. Highest balance, period-end balance, interest rate interval, and total interest for the current period.
    2. Financing period (starting and ending dates) and reason for the financing.
    3. Description of collateral obtained or produced.
    4. Method by which the transaction was decided upon.
    5. Allowances set aside for bad debt. (Those for payables for need not be stated.)
  4. Asset leasing (Table 9):
    1. Name and location of the object leased.
    2. Lease period.
    3. Whether the nature of the leasing is capital leasing or operational leasing.
    4. The method by which the leasing price was determined and the collection (payment) method, and a comparison with ordinary leasing price levels.
    5. Total leasing price for the current period and collection/payment status.
    6. Other special stipulations.
  5. Other significant business transactions such as contracts for production, sales, or processing, acquisition of corporate bonds issued by the controlling company, or subscription for new shares of the controlling company where original shareholders waived their subscription rights.