|
Article 6
|
In order to thoroughly disclose the information on the financial condition, operating results, and cash flows, the financial reports shall provide notes and explanations on the matters specified below:
- Historical changes and development of the Bank and its business scope;
- A declaration that the financial statements were prepared in conformance with these Regulations and other applicable acts and regulations (the titles of the acts or regulations shall be expressly stated) and generally accepted accounting principles;
- Summary of significant accounting policies and the basis on which they are judged;
- Where for some special reason the accounting treatment changes, affecting the comparison of the financial information between the two successive periods, the reason for the change and its effect on the financial statements shall be explained;
- If there is a need to note the estimation and valuation basis of any amount in the financial report, it shall be noted.
- If any account title contained in the financial report is restricted by any act or regulation, contract, or otherwise, the circumstances, time limit and relevant matters shall be stated;
- Significant commitments and contingent liabilities (including off-balance sheet items);
- Information relevant to financial products (including derivatives);
- Management policies and practices in relation to various risks such as credit, market, liquidity, and operational and legal risks, and exposure to major risks. The following information shall be disclosed under its respective risk category:
- Loan asset quality (Form A), lending risk concentration (Form B), losses on loans and advances and policies on reserves and provisions for losses on loans (credit risk);
- Information on significant concentration of risks in relation to assets, liabilities and off-balance sheet items (credit risk);
- Averages of interest assets and interest liabilities and average interest rate during the current period (market risk);
- Interest rate sensitivity information (market risk) (Form C);
- Net positions in major foreign currencies (market risk);
- Profitability and maturity analysis of assets and liabilities (liquidity risk) (Forms D and E);
- Special matters (operational and legal risks) (Form F);
- Capital adequacy (Form G);
- Information on asset securitization;
- Trust business activities carried out under the Trust Enterprise Act and the dollar amount;
- Policies on reserves and provisions for losses;
- Issuance of financial bonds;
- Change in capital structure;
- Assets provided as collateral;
- Addition, expansion, construction, lease, obsolescence, lying idle, sale, transfer or long-term rent of major assets;
- Major investments in other enterprises;
- Information on transactions with interested parties as a borrower, guarantor or collateral provider (Form H) as well as significant transactions with other related parties;
- Loss caused by major disasters;
- Progression or conclusion of material litigation;
- Signing, completion, cancellation, or voidance of material contracts;
- Information related to employee pension funds;
- Major organizational adjustments and significant reforms to management system;
- Material effects of changes in government acts and regulations;
- Segment financial information;
- Material effect of suspension of business;
- Transfer of the major part of business and assets/liabilities from or to another financial institution;
- Where the Bank is a subsidiary of a financial holding company, allocation of the revenue, cost, expense, and gain/loss incurred between it and the financial holding company or any other subsidiary in their business interchanges or transactions, joint business promotion, information sharing, and common use of business facilities or premises.
- Other disclosures necessary to avoid misleading users or to facilitate the fair presentation of the financial report.
|