Article 9 |
The classification of asset account titles in the balance sheet, account content, and matters to be set out in notes are as follows:
1.Current assets: Assets generated by an enterprise's operations, where it is expected that the assets will be converted to cash, consumed, or are intended for sale within the enterprise's normal operating cycle; assets held primarily for trading; assets that are expected to be converted to cash within the 12 months following the balance sheet date; and cash and cash equivalents, provided that this does not include those that within 12 months following the balance sheet date are to be used in exchange for or liquidation of debt, or that are subject to other restrictions.
(1) Cash and cash equivalents: Cash in treasury, bank deposits, revolving funds (petty cash) for incidental expenses, and highly liquid short-term investments convertible into fixed cash amounts at any time, due in the near future, where fluctuations in the investment's interest rate have insignificant impact on its value.
Non-demand bank deposits shall be posted by item, with a note if their maturity date is longer than one year. Those specifically earmarked or restricted in use may not be listed under this account title.
If time deposits (including negotiable certificates of deposit) are pledged as collateral for a debt, and if the secured debt is a long-term liability, such deposits shall be re-classified as other assets. If the secured debt is a current liability, the deposits shall be re-classified as other current assets, and a note shall be provided to explain the fact of security. Where the time deposits are provided as a refundable guarantee deposit, they shall be classified as current assets or other assets depending on whether they are short-term or long-term.
Compensating balances, if incurred due to short-term loans, shall be classified as current assets, with an explanation to be provided in the notes. Compensating balances incurred due to long-term liabilities shall be classified as other assets or long-term investments rather than current assets.
(2) Financial assets-current-whose changes in fair value are recognized in earnings: Current financial assets that are one of the following:
(i) Financial assets for trading.
(ii) Financial assets, except those designated as hedged items in hedge accounting relationships, which at the time of initial recognition were designated as assets to be measured at fair value, with changes in fair value to be recognized in earnings.
The following financial products shall be classed as financial assets for trading:
(i) Products acquired primarily for the purpose of sale in the near term.
(ii) Assets that are part of a group of distinct financial product portfolios under comprehensive management, where there is evidence that in the near term the group is in fact being managed for short-term profit.
(iii) Derivative financial assets, except those that are designated and effective hedging instruments.
Financial assets whose changes in fair value are recognized in earnings shall be measured at fair value. "Fair value," for stocks or depository receipts listed on the Taiwan Stock Exchange or traded over-the-counter on the GreTai Securities Market (GreTai), means the closing price on the balance sheet date. For open-end funds, fair value means the net asset value of the given fund on the balance sheet date.
In these Regulations, "stocks traded over-the-counter" does not include the stocks of public companies that, under Article 5 of the GreTai Securities Market Rules Governing Review of Emerging Stocks Traded on Over-the-Counter Markets, have been approved for over-the-counter trading at a securities firm's place of business ("emerging stocks").
Financial assets whose changes in fair value are recognized in earnings shall be classed according to liquidity as current or non-current. Those that are non-current shall be reclassified as "financial assets whose changes in fair value are recognized in earnings-non current" under "funds and investments".
(3) Available-for-sale financial assets-current: Non-derivative financial assets that meet one of the following conditions:
(i) The assets have been designated as available-for-sale.
(ii) The assets fall within none of the following financial asset classes:
a. Financial assets whose changes in fair value are included in earnings.
b. Financial assets held to maturity.
c. Financial assets measured at cost.
d. Bond portfolios with no active market bonds.
e. Receivables.
Available-for-sale financial assets shall be classified according to liquidity as current or non-current. Those that are non-current shall be reclassified as "available-for-sale financial assets-non current" under "funds and investments".
Available-for-sale financial assets shall be measured at fair value. "Fair value," for stocks or depository receipts listed on the Taiwan Stock Exchange or traded over-the-counter on the GreTai Securities Market, means the closing price on the balance sheet date. For open-end funds, fair value means the net asset value of the given fund on the balance sheet date.
(4) Derivative financial assets for hedging-current : Derivative financial assets that have been designated in hedge accounting relationships and are effective hedging instruments shall be measured at fair value and classed according to liquidity as current or non-current. Those that are non-current shall be reclassified as "derivative financial assets for hedging-non current" under "funds and investments".
(5) Financial assets measured at cost-current: Holdings in the following stocks that have no material influence, or derivatives linked to and settled in those stocks:
(i) Stocks not listed on the Taiwan Stock Exchange or traded on the GreTai.
(ii) Emerging stocks.
Financial assets measured at cost shall be classed according to liquidity as current or non-current. Those that are non-current shall be reclassified as "financial assets measured at cost-non current" under "funds and investments".
(6) Bond portfolios with no active market bonds-current: Investments in publicly quoted bonds paying fixed or determinable amounts that include no active market bonds, where the following conditions are also met:
(i) The bond investments have not been designated for measurement at fair value and for recognition of changes in their fair value in earnings.
(ii) The bond investments have not been designated as available-for-sale.
Bond portfolios with no active market bonds shall be stated at cost after amortization and classed according to liquidity as current or non-current. Those that are non-current shall be reclassified as "bond portfolios with no actively traded bonds-non current" under "funds and investments".
(7) Notes receivable: all notes receivable.
The fair value of notes receivable shall be calculated from the imputed interest rate, provided that for notes receivable at one-year periods or less, where the difference between the fair value and the value at maturity is small and the notes are frequently traded, the notes need not be measured at fair value.
Discounted or transferred notes receivable shall be deducted and the deduction set out in the financial statement notes.
Notes receivable resulting from operating activities and notes receivable resulting from non-operating activities shall be given separate entries.
Notes receivables in significant amounts from related parties shall be separately disclosed, unless resulting from operating activities.
Notes provided for security shall be so indicated in the notes to the financial statement.
Notes receivable that are determined to be impossible to collect shall be written off.
During account settlement, the amount of uncollectible notes receivable shall be assessed and an appropriate allowance for bad debt provided, and shall be classified as a deduction from notes receivable.
(8) Accounts receivable: claims resulting from the main business.
The fair value of accounts receivable shall be calculated based on the imputed interest rate, provided that for accounts receivable at one-year periods or less, where the difference between the fair value and the value at maturity is small and where trading is also frequent, the accounts receivable need not be measured at fair value.
Large accounts receivable from related parties shall be appropriately disclosed.
An account receivable for which collection is determined to be impossible shall be written off.
During account settlement, the amount of uncollectible accounts receivable shall be assessed and an appropriate allowance for bad debt provided, and shall be classified as a deduction from accounts receivable.
(9) Other receivables: other receivables not falling within notes receivable and accounts receivable.
Other receivables for which collection is determined to be impossible shall be written off.
During account settlement, the amount of other receivables uncollectible shall be assessed and an appropriate allowance for bad debt provided, and shall be classified as a deduction from other receivables.
If any of the "other receivables" exceeds the aggregate amount of current assets by 5%, they shall be individually stated according to type or counterparty.
(10) Other financial assets-current: Financial assets not listed separately on the balance sheet shall be listed as "other financial assets " and shall be categorized according to liquidity as either current or non-current. Non-current assets shall be reclassified as "other financial assets-non-current" under "funds and investments".
When the amount of a financial asset under "current assets" accounts for 5 percent of aggregate current assets, it shall be given a separate balance sheet entry.
(11) Prepayments: all prepaid amounts and expenses. Contractually stipulated prepayments for purchase of fixed assets and payments for uncompleted construction for operational use shall be listed as fixed assets and may not be listed as prepayments.
(12) Long-term equity investments held for disposal: equity investments in a subsidiary, where sale of those investments is planned within 12 months after the balance sheet date.
(13) Non-current assets held for sale: Non-current assets, or disposal groups held for sale, that are available for immediate sale in their present condition subject only to terms that are usual and customary for sales of such an asset, and for which completion of a sale within one year is highly probable.
The measurement, presentation, and disclosure of non-current assets held for sale and disposal groups held for sale shall be carried out in compliance with Statement of Financial Accounting Standards No. 38.
(14) Other current assets: all current assets not falling within the above categories. With the exception of "cash and other financial assets-current", any of the above assets which does not exceed 5% of aggregate current assets may be incorporated into "other current assets".
2. Funds and investments: Funds specifically allocated and deposited for specified use in the future and investments in a specific enterprise approved by the FSC, or long-term investments made for regular business purposes. A financial asset listed under the "funds and investments" account that accounts for 5% of aggregate "funds and investments" assets shall be given a separate balance sheet entry.
(1) Financial assets held to maturity-non-current: Non-derivative financial assets paying fixed or determinable amounts at a fixed maturity date, which the company positively intends and has the ability to hold to maturity. Financial assets held to maturity shall be measured at cost after amortization. Investments held to maturity that mature within one year shall be reclassified as "investments held to maturity-current" under "current assets".
(2) Funds: assets provided for specified uses such as sinking funds, improvement and expansion funds, and contingency reserves.
Resolutions and rules that serve as the basis for provision of a fund shall be set out in a note.
A welfare fund set aside in accordance with the Employee Welfare Fund Act shall be stated as an expense.
(3) Long-term investments: Long-term investments under the equity method in specified enterprises approved by the FSC, or in other property interests, to satisfy operational objectives, such as investment in the stocks of other enterprises or investments in real estate.
The method of valuation of long-term investments shall be provided in a note, and they shall be separately listed according to type.
The valuation and expression of long-term equity investments using the equity method shall be carried out in accordance with the Statement of Financial Accounting Standards No. 5.
In recognizing investment gains and losses according to the equity method, when an investee's financial report is not prepared in accordance with the generally accepted accounting principles of the ROC, that report shall first be adjusted in accordance with those principles and investment gains and losses recognized in accordance with the adjusted report. When any of the following circumstances apply to the investee, its financial statement shall be audited and certified by a CPA in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants and with generally accepted accounting principles.
(i) Its paid-in capital is NT$30 million or more;
(ii) Its operating revenues reach NT$50 million or more or 10% or more of the company's operating revenues.
If long-term investments are pledged as collateral or subject to constraints or restrictions, that fact shall be indicated in the notes.
3. Fixed assets: Tangible assets used for operations, with a service life of one year or more, and not for the purpose of sale.
Under fixed assets, land and depreciable assets shall be presented separately. Any asset under "fixed assets" accounting for 5% of total "fixed assets" shall be given a separate balance sheet entry.
Fixed assets shall be recorded at the historical cost of acquisition or construction, provided that interest on the purchase price of a "presold" building or fixed assets purchased with a cash capital increase shall not be capitalized. Idled fixed assets shall be reclassified as other assets at the lower of their net fair value or book value. A fixed asset that is still in use after the expiration of its service life shall continue to be depreciated based on the residual value.
Leased assets shall be recognized and disclosed in accordance with the Statement of Financial Accounting Standards No. 2.
If a leased asset is of the operating lease type, an improvement made to the leased property is termed a leasehold improvement and shall be recorded as a fixed asset.
The valuation basis for a fixed asset shall be indicated in a note. If the fixed asset has been revalued, the date of revaluation and increased or decreased amount shall be recorded, and the acquisition costs and the appraisal increment shall be separately presented. The land value increment tax reserve allocated due to a land appraisal increment shall be classified as a long-term liability. Where fixed assets have been revalued, from the day following the date of record of the revaluation, depreciation shall be calculated based on the reassessed value.
Except for land, fixed assets shall be periodically depreciated or depleted on a reasonable and systematic basis within their estimated useful life, without interruption or deduction.
The accumulated depreciation or accumulated impairment of a fixed asset shall be recorded as a deduction from fixed assets.
A leasehold improvement shall be reasonably and systematically depreciated based on the lower of its estimated useful life or lease term, without interruption or reduction.
The method for calculating the depreciation of depreciable assets shall be given in a note.
If a fixed asset is provided as a guarantee, or has a mortgage, or a lien (dien) against it, that fact shall be given in a note.
4. Intangible assets: Assets that have no physical substance and are not monetary, are identifiable, can be under the control of a business, and can generate future economic benefit.
Any asset under "intangible assets" that accounts for 5% of total "intangible assets" shall be given a separate balance sheet entry.
Recognition, measurement, and disclosure of intangible assets shall be carried out in accordance with Statement of Financial Accounting Standards No. 37.
During the development stage, the assets shall be valued and profits/losses recognized and disclosed in accordance with Statement of Financial Accounting Standards No. 19.
The valuation basis for intangible assets shall be noted.
5. Other assets: All the assets not falling within the above categories and with a collection or recovery period of one year or one operating cycle or longer. When the amount of other assets exceeds 5% of the total amount of assets, the names of the accounts shall be separately recorded.
(1) Operating bond: the operating bond set aside in accordance with the Securities and Exchange Act and the Rules Governing Stock Exchanges;
(2) Refundable deposits: all other refundable deposits;
(3) Deferred debits: long-term prepaid expenses which will bring future economic benefits and shall be periodically amortized subsequently;
(4) Other assets: assets not falling within the above categories.
The fair value of long-term notes receivable and other long-term receivables shall be calculated from the imputed interest rate.
Large, overdue accounts receivable shall be listed separately, and the collection status and the amount of allowance for bad debt shall be noted.
If financial assets held by a company are pledged as collateral for debt, they shall be categorized according to the liquidity of the collateralized debt as current or non-current assets.
Assets provided as refundable deposits shall be categorized according to liquidity as current or non-current assets.
6. Settlement/clearance debit items: an item to be offset by the company-type securities exchange in handling securities settlement/clearance. When the statement is prepared, the balance after offsetting debit items against credit items shall be recorded. However, the nature, content, use method, and pledge status shall be explained in the footnotes of the financial report, and the details shall be disclosed in the list of accounts.
(1) Settlement/clearance fund: The settlement/clearance fund paid/deposited by securities firms in accordance with the Securities and Exchange Act and the Regulations Governing Securities Firms and the interest income and relevant expenses derived therefrom shall be recorded under this classification.
(2) Settlement price: the settlement amount receivable from securities firms.The classification of asset account titles in the balance sheet, account content, and matters to be set out in notes are as follows:
1.Current assets: Assets generated by an enterprise's operations, where it is expected that the assets will be converted to cash, consumed, or are intended for sale within the enterprise's normal operating cycle; assets held primarily for trading; assets that are expected to be converted to cash within the 12 months following the balance sheet date; and cash and cash equivalents, provided that this does not include those that within 12 months following the balance sheet date are to be used in exchange for or liquidation of debt, or that are subject to other restrictions.
(1) Cash and cash equivalents: Cash in treasury, bank deposits, revolving funds (petty cash) for incidental expenses, and highly liquid short-term investments convertible into fixed cash amounts at any time, due in the near future, where fluctuations in the investment's interest rate have insignificant impact on its value.
Non-demand bank deposits shall be posted by item, with a note if their maturity date is longer than one year. Those specifically earmarked or restricted in use may not be listed under this account title.
If time deposits (including negotiable certificates of deposit) are pledged as collateral for a debt, and if the secured debt is a long-term liability, such deposits shall be re-classified as other assets. If the secured debt is a current liability, the deposits shall be re-classified as other current assets, and a note shall be provided to explain the fact of security. Where the time deposits are provided as a refundable guarantee deposit, they shall be classified as current assets or other assets depending on whether they are short-term or long-term.
Compensating balances, if incurred due to short-term loans, shall be classified as current assets, with an explanation to be provided in the notes. Compensating balances incurred due to long-term liabilities shall be classified as other assets or long-term investments rather than current assets.
(2) Financial assets-current-whose changes in fair value are recognized in earnings: Current financial assets that are one of the following:
(i) Financial assets for trading.
(ii) Financial assets, except those designated as hedged items in hedge accounting relationships, which at the time of initial recognition were designated as assets to be measured at fair value, with changes in fair value to be recognized in earnings.
The following financial products shall be classed as financial assets for trading:
(i) Products acquired primarily for the purpose of sale in the near term.
(ii) Assets that are part of a group of distinct financial product portfolios under comprehensive management, where there is evidence that in the near term the group is in fact being managed for short-term profit.
(iii) Derivative financial assets, except those that are designated and effective hedging instruments.
Financial assets whose changes in fair value are recognized in earnings shall be measured at fair value. "Fair value," for stocks or depository receipts listed on the Taiwan Stock Exchange or traded over-the-counter on the GreTai Securities Market (GreTai), means the closing price on the balance sheet date. For open-end funds, fair value means the net asset value of the given fund on the balance sheet date.
In these Regulations, "stocks traded over-the-counter" does not include the stocks of public companies that, under Article 5 of the GreTai Securities Market Rules Governing Review of Emerging Stocks Traded on Over-the-Counter Markets, have been approved for over-the-counter trading at a securities firm's place of business ("emerging stocks").
Financial assets whose changes in fair value are recognized in earnings shall be classed according to liquidity as current or non-current. Those that are non-current shall be reclassified as "financial assets whose changes in fair value are recognized in earnings-non current" under "funds and investments".
(3) Available- |
Article 10 |
The categorization of liability account titles on the balance sheet, the content of entries made therein, and matters to be noted are as follows:
1. Current liabilities: Liabilities incurred through operations, for which liquidation is anticipated within one business cycle in the normal course of business; liabilities incurred primarily in relation to trading; liabilities which must be liquidated within 12 months after the balance sheet date; and liabilities whose liquidation the enterprise may not unconditionally defer more than 12 months beyond the balance sheet date.
(1) Short-term loans: Includes short-term borrowings from banks, overdrafts, and other short-term loans.
For short-term loans, the nature of the loan, lending bank name, interest rate interval, due date, and guarantee status, shall be noted based on the type of loans. If collateral is provided, the name of the collateral and its book value shall be recorded.
Borrowings from financial institutions, shareholders, employees, related parties, and other individuals or institutions shall be individually noted.
(2) Short-term bills payable: Short-term bills issued through financial institutions to acquire funds from the money market, including commercial paper payable and bankers' acceptances.
Short-term bills payable shall be valued at present value. Discounting of short-term bills payable shall be recorded as a deduction from short-term bills payable.
For short-term bills payable, the agency for guarantee and acceptance and the interest rate shall be noted. If collateral is provided, the name and book value of such collateral shall be stated.
(3) Financial liabilities-current-whose changes in fair value are recognized in earnings: Current financial liabilities that meet one of the following conditions:
(i) Financial liabilities for trading.
(ii) Financial liabilities, except those designated as hedged items in hedge accounting relationships, which at the time of initial recognition were designated as liabilities to be measured at fair value, with changes in fair value to be recognized in earnings.
The following financial products shall be classified as financial liabilities for the purpose of trading:
(i) Liabilities incurred primarily for the purpose of repurchase in the near term.
(ii) Liabilities that are part of a group of distinct financial product portfolios under comprehensive management, where there is evidence that in the near term the group is in fact being managed for short-term profit.
(iii) Derivative financial liabilities, with the exception of those that are designated and effective hedging instruments.
Financial liabilities whose changes in fair value are recognized in earnings shall be measured at fair value. "Fair value," for stocks or depository receipts listed on the Taiwan Stock Exchange or traded over-the-counter on the GreTai, means the closing price on the balance sheet date.
Financial liabilities whose changes in fair value are recognized in earnings shall be classed according to liquidity as current or non-current. Those that are non-current shall be reclassified as "financial liabilities whose changes in fair value are recognized in earnings-non current" under "long-term liabilities".
(4) Derivative financial liabilities for hedging-current: Derivative financial liabilities that have been designated in hedge accounting relationships and are effective hedging instruments; these shall be measured at fair value and classified according to liquidity as current or non-current. Those that are non-current shall be reclassified as "derivative financial liabilities-non current" under "long-term liabilities".
(5) Financial liabilities measured at cost-current: Derivative financial liabilities that are linked to stocks that are neither listed on the Taiwan Stock Exchange nor traded on the GreTai, or that are emerging stocks, and that are settled in those stocks. Financial liabilities measured at cost shall be classed according to liquidity as current or non-current; those that are non-current shall be reclassified as "financial liabilities measured at cost-non current" under "long-term liabilities".
(6) Notes payable: all notes payable.
Notes payable shall be valued at present value, provided that those resulting from operating activities and maturing within one year may be valued at face value.
Notes payable resulting from operating activities shall be distinguished from notes payable from non-operating activities.
Large-amount notes payable to banks and related parties shall be individually disclosed.
If collateral has been provided for notes payable, the name of the collateral and its book value shall be recorded.
Notes used for refundable deposits that can be recovered for cancellation upon termination of the guarantee obligation need not be recorded as current liabilities, provided that the nature and amount of the guarantee shall be explained in the notes to the financial statement.
(7) Accounts payable: liabilities incurred for purchase of materials, goods, or services on credit.
Accounts payable shall be valued at present value, providing that those resulting from operating activities and maturing within one year may be valued at the account book value.
Accounts payable resulting from operating activities shall be distinguished from accounts payable from non-operating activities.
Large accounts payable to related parties shall be appropriately disclosed.
If collateral has been provided for accounts payable, the name of the collateral and its book value shall be recorded.
(8) Other payables: other payables not falling within notes payable and accounts payable, such as taxes, wages, and dividends payable.
For dividends and bonuses payable passed by resolution of the shareholders meeting, the distribution method and proposed payment date, if determined, shall be disclosed.
During settlement of profits and losses at the end of each period, the estimated income tax payable calculated based on taxable income shall be recorded as a current liability.
Any other payables that exceed 5% of the aggregate amount of current liabilities shall be individually recorded by type.
(9) Other financial liabilities-current: Financial liabilities not listed individually on the balance sheet shall be listed as other financial liabilities and be categorized according to liquidity as either current or non-current. Non-current liabilities shall be reclassified as "other financial liabilities-non-current" under "long-term liabilities".
Any financial liability under "current liabilities" that accounts for 5 percent of aggregate current liabilities shall be given a separate balance sheet entry.
When financial liabilities of a company reach maturity within the 12 months after the balance sheet date and long-term refinancing or extension is not accomplished until after the balance sheet date, such liabilities shall still be stated as current liabilities.
(10) Advance receipts: all amounts received in advance.
Amounts received in advance shall be given separate entries according to category and any relevant stipulations shall be noted.
(11) Liabilities directly associated with non-current assets held for sale: Disposal groups held for sale that are available for immediate sale by a business in their present condition subject only to terms that are usual and customary for sales of such assets, and for which completion of a sale within one year is highly probable.
(12) Other current liabilities: All current liabilities not falling within the above categories. Any of the above current liabilities that do not exceed 5% of the aggregate total of current liabilities may be incorporated into "other current liabilities."
2. Long-term liabilities: Liabilities which will mature 12 months or more after the balance sheet date, including corporate bonds payable, long-term borrowings, long-term notes payable, and long-term payables. Any financial liability under "long-term liabilities" that accounts for 5 percent of aggregate long-term liabilities shall be given a separate balance sheet entry.
(1) Corporate bonds payable (including overseas corporate bonds): Bonds issued by the company. For issued bonds, the total approved amount, interest rate, maturity date, name of the collateral, book value, region of issue, and other relevant terms and restrictions shall be indicated in the notes to the financial statement. If the bonds are convertible corporate bonds, the method of conversion and amounts already converted shall also be noted.
Premiums and discounts on corporate bonds payable are valuation accounts and shall be classified as additions to or deductions from corporate bonds payable. They shall be reasonably and systematically amortized during the period of bond circulation and recorded as an adjustment in interest expenses.
(2) Long-term borrowings: Includes long-term bank loans, and other long-term borrowings or loans paid in installments. For long-term borrowings, the content, date of maturity, interest rate, name of collateral, book value, and any important restrictive covenants shall be disclosed.
For a long-term loan repaid in foreign currency or in an amount translated at a foreign exchange rate, the name and amount of such foreign currency shall be indicated.
Long-term loans from shareholders, employees, and related parties shall be separately recorded.
Long-term notes payable and other long-term payables shall be valued at present value.
(3) Preferred stock liabilities-non-current: Preferred stock issued in accordance with the Statement of Financial Accounting Standards No. 36 and having the nature of a financial liability.
Preferred stock liabilities shall be classified according to liquidity as current or non-current. Those that are current shall be reclassified as "preferred stock liabilities-current."
3. Other liabilities: Liabilities not falling within the above categories. When the amount of other liabilities exceeds 5% of the total amount of liabilities, the liabilities shall be separately reported by type.
(1) Refundable deposits: all other refundable deposits.
(2) Other miscellaneous liabilities: other liabilities not falling in one of the above classifications.
For financial liabilities maturing within 12 months after the balance sheet date, if the original loan contract period was in excess of 12 months and the company intends long-term refinancing, and has accomplished refinancing or rollover by the balance sheet date, or if, based on the current refinancing contract, it has the discretionary ability to refinance the financial assets or extend the loan more than 12 months beyond the balance sheet date, the assets shall be listed as non-current liabilities, and the amount of the loan and relevant facts provided in the notes to the financial statement.
Financial liabilities shall be listed as current liabilities when, under a given loan contract, breach of a specific clause of the loan contract requires immediate repayment. However, when the creditor has agreed prior to the balance sheet date not to enforce such a clause, and when there is an extension to more than 12 months after the balance sheet date with the condition that when the business is capable of rectifying the breach during the period of extension, the creditor may not demand immediate repayment of assets, then the loan shall be listed as a non-current liability.
4. Settlement/clearance credit item: an item for offset by the securities exchange in handling securities settlement/clearance. When the statement is prepared, the balance after offsetting debit items against credit items shall be recorded. However, the nature, content, use, and pledge status shall be explained in the footnotes of the financial report, and the details shall be disclosed in the list of accounts.
(1) Settlement/clearance fund deposits received: a contra account of "settlement/clearance fund" in asset accounts.
(2) Settlement prices: settlement amounts payable to securities firms.The categorization of liability account titles on the balance sheet, the content of entries made therein, and matters to be noted are as follows:
1. Current liabilities: Liabilities incurred through operations, for which liquidation is anticipated within one business cycle in the normal course of business; liabilities incurred primarily in relation to trading; liabilities which must be liquidated within 12 months after the balance sheet date; and liabilities whose liquidation the enterprise may not unconditionally defer more than 12 months beyond the balance sheet date.
(1) Short-term loans: Includes short-term borrowings from banks, overdrafts, and other short-term loans.
For short-term loans, the nature of the loan, lending bank name, interest rate interval, due date, and guarantee status, shall be noted based on the type of loans. If collateral is provided, the name of the collateral and its book value shall be recorded.
Borrowings from financial institutions, shareholders, employees, related parties, and other individuals or institutions shall be individually noted.
(2) Short-term bills payable: Short-term bills issued through financial institutions to acquire funds from the money market, including commercial paper payable and bankers' acceptances.
Short-term bills payable shall be valued at present value. Discounting of short-term bills payable shall be recorded as a deduction from short-term bills payable.
For short-term bills payable, the agency for guarantee and acceptance and the interest rate shall be noted. If collateral is provided, the name and book value of such collateral shall be stated.
(3) Financial liabilities-current-whose changes in fair value are recognized in earnings: Current financial liabilities that meet one of the following conditions:
(i) Financial liabilities for trading.
(ii) Financial liabilities, except those designated as hedged items in hedge accounting relationships, which at the time of initial recognition were designated as liabilities to be measured at fair value, with changes in fair value to be recognized in earnings.
The following financial products shall be classified as financial liabilities for the purpose of trading:
(i) Liabilities incurred primarily for the purpose of repurchase in the near term.
(ii) Liabilities that are part of a group of distinct financial product portfolios under comprehensive management, where there is evidence that in the near term the group is in fact being managed for short-term profit.
(iii) Derivative financial liabilities, with the exception of those that are designated and effective hedging instruments.
Financial liabilities whose changes in fair value are recognized in earnings shall be measured at fair value. "Fair value," for stocks or depository receipts listed on the Taiwan Stock Exchange or traded over-the-counter on the GreTai, means the closing price on the balance sheet date.
Financial liabilities whose changes in fair value are recognized in earnings shall be classed according to liquidity as current or non-current. Those that are non-current shall be reclassified as "financial liabilities whose changes in fair value are recognized in earnings-non current" under "long-term liabilities".
(4) Derivative financial liabilities for hedging-current: Derivative financial liabilities that have been designated in hedge accounting relationships and are effective hedging instruments; these shall be measured at fair value and classified according to liquidity as current or non-current. Those that are non-current shall be reclassified as "derivative financial liabilities-non current" under "long-term liabilities".
(5) Financial liabilities measured at cost-current: Derivative financial liabilities that are linked to stocks that are neither listed on the Taiwan Stock Exchange nor traded on the GreTai, or that are emerging stocks, and that are settled in those stocks. Financial liabilities measured at cost shall be classed according to liquidity as current or non-current; those that are non-current shall be reclassified as "fina |
Article 11 |
Classification of accounts in the balance sheet under "shareholders' equity," the content of account entries, and matters to be noted are as follows:
1. Capital stock: Capital invested in the company by shareholders and for which application for registration has been made with the authority in charge of corporate registration, provided that preferred stock having the nature of a financial liability shall not be included.
The type of capital stock, par value per share, number of shares authorized, number of shares issued, and any special terms and conditions shall be indicated.
If convertible preferred stock and global depositary receipts are issued, the issue region, issuance and conversion methods, converted amount and special terms and conditions shall be disclosed.
Treasury stocks shall be treated using the cost method and recorded as a deduction from shareholders' equity. The number of shares shall be noted.
2. Additional paid-in capital reserve: Refers to the equity components of financial products issued by the company or the premiums generated by capital stock transactions between the company and shareholders, and typically includes premium over the par value of stock issued, surplus from donations, and other revenues generated as recognized by generally accepted accounting principles.
Additional paid-in capital reserves shall be recognized separately according to their type; where utilization is restricted, the restricting conditions shall be disclosed in the notes to the financial statement.
3. Retained earnings (or accumulated deficit): Equity resulting from operating activities, including legal reserves, special reserves, and unappropriated retained earnings (or deficit to be covered).
(1) Legal reserve: The amount of legal reserve to be allocated in accordance with the Company Act.
(2) Special reserve: The reserve allocated from earnings in accordance with relevant provisions of laws and regulations, contracts, the articles of incorporation, or resolutions of shareholders meetings.
(3) Unappropriated earnings (or deficit to be covered): Undistributed and unappropriated earnings (uncovered deficit is "deficit to be covered").
(4) Distribution of earnings or covering of losses shall not be recorded until approved by the shareholders meeting, provided that any proposed earnings distribution or covering of losses shall be disclosed in the notes to the current financial statement.
4. Other shareholders' equity: Refers to other items resulting in additions to or deductions from shareholders' equity, and typically includes unrealized revaluation gains, unrealized gains/losses on financial products, net losses not recognized as retirement fund costs, translation adjustments, equity directly associated with non-current assets held for sale, and treasury stock. |