| Article 11 |
Assets shall be properly classified. Current and non-current assets shall be distinguished.
For each asset line item, the total amount expected to be recovered within 12 months after the balance sheet date and the total amount expected to be recovered more than 12 months after the balance sheet date shall be separately presented in the financial statements or disclosed in the notes.
As a minimum, the balance sheet shall include the following asset line items:
1. Current assets: A company-type futures exchange shall classify an asset as current when it expects to realize the asset, or intends to sell or consume it, in its normal operating cycle; when it holds the asset primarily for the purpose of trading; when it expects to realize the asset within 12 months after the balance sheet date; or when the asset is cash or a cash equivalent, unless the asset is to be used for an exchange or to settle a liability, or otherwise remains restricted, at more than 12 months after the balance sheet date.
(1) Cash and cash equivalents: Cash on hand, demand deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
A company-type futures exchange shall disclose the components of cash and cash equivalents and the policy which it adopts in determining the composition of cash and cash equivalents.
(2) Financial assets at fair value through profit or loss – current: Financial assets that are not measured at amortized cost or at fair value through other comprehensive income.
(3) Financial assets measured at fair value through other comprehensive income – current: An investment in an equity instrument that is not held for trading, where at initial recognition a company-type futures exchange elects to present subsequent changes in the fair value of the investment under other comprehensive income.
(4) Derivative financial assets for hedging – current: Any derivative financial asset that is a designated and effective hedging instrument under hedge accounting requirements. Any such asset shall be measured at fair value.
(5) Financial assets measured at amortized cost – current: Financial assets for which both of the following conditions are met:
(i) The company-type futures exchange holds the asset within a business model whose objective is to hold assets in order to collect contractual cash flows.
(ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Upon initial recognition a company-type futures exchange may still designate a financial asset for which the foregoing conditions are met as at fair value through profit or loss, if when doing so it eliminates or reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.
(6) Trade receivables: Claims resulting from principal business operations.
Trade receivables shall be measured at amortized cost using the effective interest method. However, short-term trade receivables with no stated interest rate may be measured at the original invoice amount if the effect of discounting is immaterial.
Trade receivables from related parties in significant amounts shall be presented separately.
At each balance sheet date an assessment shall be made of whether there is any uncollectible amount from trade receivables and an appropriate allowance for doubtful debts shall be made and presented as a deduction from trade receivables.
(7) Other receivables: Receivables other than trade receivables.
At each balance sheet date an assessment shall be made of whether there is any unrecoverable amount from other receivables and an appropriate allowance for doubtful debts shall be made and presented as a deduction from other receivables.
(8) Current tax assets: The portion of the tax amount already paid in respect of current and prior periods that exceeds the amount due for those periods.
(9) Prepayments: All prepayments and prepaid expenses.
(10) Non-current assets held for sale: Any non-current asset, or asset included in a disposal group held for sale, that is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups, and whose sale must be highly probable.
The measurement, presentation, and disclosure of non-current assets held for sale and disposal groups held for sale shall be made in accordance with IFRS 5.
(11) Other current assets: Current assets not attributable to any of the classes above.
2. Non-current assets: Tangible, intangible and financial assets of a long-term nature, other than assets classified as current.
(1) Financial assets measured at fair value through other comprehensive income – non-current: The non-current portion of financial assets measured at fair value through other comprehensive income, including long-term investments in equity instruments not accounted for using the equity method.
(2) Investments accounted for using the equity method: An interest in an associate where the investment in the associate has been approved by the FSC, or an interest in a jointly controlled entity not recognized by the venturer using proportionate consolidation.
The valuation and presentation of investments accounted for using the equity method shall be made in accordance with IAS 28.
When investment gain or loss is recognized, if the financial reports prepared by an associate do not conform to these Regulations, those financial reports shall first be adjusted to achieve conformance before they may be used to recognize investment gain or loss. The financial reports of an associate used in applying the equity method shall be prepared as of the same date as that of the company-type futures exchange, and if prepared as of a different date, adjustments shall be made for the effects of significant transactions or events that occur between that date and the date of the company-type futures exchange's financial reports. In no case shall there be more than 3 months difference between the balance sheet date of the associate and that of the company-type futures exchange. If a CPA determines, pursuant to Statement of Auditing Standards No. 24, that an associate has a material effect on the fair presentation of the financial reports of an company-type futures exchange, the financial reports of the associate shall be audited by a CPA in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants and generally accepted auditing standards.
If an investment accounted for using the equity method is pledged as collateral or otherwise subject to any restriction or limitation, that fact shall be noted.
(3) Property and equipment: Tangible asset items that are held for use in the supply of goods or services, for rental to others, or for administrative purposes, and that are expected to be used during more than 1 financial year.
Property and equipment shall be subsequently measured using the cost model and accounted for in accordance with IAS 16.
Each component of property and equipment that is significant shall be depreciated separately.
When items of property and equipment have different useful lives, or provide economic benefits in different ways, or are subject to different depreciation methods or depreciation rates, the notes shall show each class of their material components.
(4) Investment property: Property held, by the owner or by the lessee under a finance lease, to earn rentals, or for capital appreciation, or both.
Investment property shall be subsequently measured using the cost model and accounted for in accordance with IAS 40.
(5) Intangible assets: An identifiable non-monetary asset without physical substance that meets the definition of identifiability, control by an entity, and existence of future economic benefits.
Intangible assets shall be subsequently measured using the cost model and accounted for in accordance with IAS 38.
(6) Deferred tax assets: The amounts of income taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused tax losses, and the carryforward of unused tax credits.
(7) Other non-current assets: Non-current assets not attributable to any of the classes above.
The items described in the preceding paragraph in relation to financial assets at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, financial assets measured at amortized cost, trade receivables, and other receivables shall be accounted for in accordance with IFRS 9 and IAS 39.
A company-type futures exchange shall assess at each balance sheet date whether there is any objective evidence of impairment for the items described in paragraph 3 in relation to financial assets measured at amortized cost, trade receivables, other receivables, investments accounted for using the equity method, property and equipment, investment property, and intangible assets. If any such evidence exists, the company-type futures exchange shall recognize the amount of any impairment loss in accordance with IAS 39 and IAS 36.
The items described in paragraph 3 in relation to financial assets at fair value through profit or loss, derivative financial assets for hedging, and financial assets measured at amortized cost shall be distinguished as current and non-current based on liquidity.Assets shall be properly classified. Current and non-current assets shall be distinguished.
For each asset line item, the total amount expected to be recovered within 12 months after the balance sheet date and the total amount expected to be recovered more than 12 months after the balance sheet date shall be separately presented in the financial statements or disclosed in the notes.
As a minimum, the balance sheet shall include the following asset line items:
1. Current assets: A company-type futures exchange shall classify an asset as current when it expects to realize the asset, or intends to sell or consume it, in its normal operating cycle; when it holds the asset primarily for the purpose of trading; when it expects to realize the asset within 12 months after the balance sheet date; or when the asset is cash or a cash equivalent, unless the asset is to be used for an exchange or to settle a liability, or otherwise remains restricted, at more than 12 months after the balance sheet date.
(1) Cash and cash equivalents: Cash on hand, demand deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
A company-type futures exchange shall disclose the components of cash and cash equivalents and the policy which it adopts in determining the composition of cash and cash equivalents.
(2) Financial assets at fair value through profit or loss – current: Financial assets that are not measured at amortized cost or at fair value through other comprehensive income.
(3) Financial assets measured at fair value through other comprehensive income – current: An investment in an equity instrument that is not held for trading, where at initial recognition a company-type futures exchange elects to present subsequent changes in the fair value of the investment under other comprehensive income.
(4) Derivative financial assets for hedging – current: Any derivative financial asset that is a designated and effective hedging instrument under hedge accounting requirements. Any such asset shall be measured at fair value.
(5) Financial assets measured at amortized cost – current: Financial assets for which both of the following conditions are met:
(i) The company-type futures exchange holds the asset within a business model whose objective is to hold assets in order to collect contractual cash flows.
(ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Upon initial recognition a company-type futures exchange may still designate a financial asset for which the foregoing conditions are met as at fair value through profit or loss, if when doing so it eliminates or reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.
(6) Trade receivables: Claims resulting from principal business operations.
Trade receivables shall be measured at amortized cost using the effective interest method. However, short-term trade receivables with no stated interest rate may be measured at the original invoice amount if the effect of discounting is immaterial.
Trade receivables from related parties in significant amounts shall be presented separately.
At each balance sheet date an assessment shall be made of whether there is any uncollectible amount from trade receivables and an appropriate allowance for doubtful debts shall be made and presented as a deduction from trade receivables.
(7) Other receivables: Receivables other than trade receivables.
At each balance sheet date an assessment shall be made of whether there is any unrecoverable amount from other receivables and an appropriate allowance for doubtful debts shall be made and presented as a deduction from other receivables.
(8) Current tax assets: The portion of the tax amount already paid in respect of current and prior periods that |
| Article 12 |
Liabilities shall be properly classified. Current and non-current liabilities shall be distinguished.
For each liability line item, the total amount expected to be settled within 12 months after the balance sheet date and the total amount expected to be settled more than 12 months after the balance sheet date shall be separately presented in the financial statements or disclosed in the notes.
As a minimum, the balance sheet shall include the following liability line items:
1. Current liabilities: An company-type futures exchange shall classify a liability as current when it expects to settle the liability in its normal operating cycle; when it holds the liability primarily for the purpose of trading; when it expects to settle the liability when due within 12 months after the balance sheet date, even if an agreement to refinance or to reschedule payments on a long-term basis is completed after the balance sheet date and before the financial statements are authorized for issue; or when it does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
(1) Short-term borrowings: Includes short-term borrowings from banks, overdrafts, and other short-term borrowings.
For short-term borrowing, the nature of the borrowing, the name of the lending bank, the interest rate range, the maturity date, and the guarantee status shall be noted based on the type of borrowing. If collateral is provided, the name and carrying amount of the collateral shall be stated.
Borrowings from financial institutions, shareholders, employees, related parties, and other individuals or institutions shall be separately 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 measured at amortized cost using the effective interest method. However, short-term bills payable with no stated interest rate may be measured at the original face amount if the effect of discounting is immaterial.
For short-term bills payable, the guarantor or accepting institution and the interest rate shall be noted. If collateral is provided, the name and carrying amount of the collateral shall be noted.
(3) Financial liabilities at fair value through profit or loss – current: Financial liabilities that meet either of the following conditions:
(i) Financial liabilities held for trading.
(ii) Financial liabilities that, except for those designated as hedged items under hedge accounting requirements, are designated upon initial recognition as at fair value through profit or loss.
A financial instrument shall be classified as a financial liability held for trading if:
(i) it is incurred principally for the purpose of repurchasing it in the near term;
(ii) it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
(iii) it is a derivative financial liability, except for a derivative financial liability that is a designated and effective hedging instrument.
(4) Derivative financial liabilities for hedging – current: A derivative financial liability that is a designated and effective hedging instrument under hedge accounting requirements. Any such liability shall be measured at fair value.
(5) Financial liabilities measured at amortized cost – current: Financial liabilities that are not:
(i) financial liabilities at fair value through profit or loss;
(ii) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies;
(iii) financial guarantee contracts; or
(iv) commitments to provide a loan at a below-market interest rate.
(6) Trade payables: Payables resulting from principal business operations.
Trade payables shall be measured at amortized cost using the effective interest method. However, short-term trade payables with no stated interest rate may be measured at the original invoice amount if the effect of discounting is immaterial.
Trade payables arising from operating activities shall be presented separately from other payables arising from non-operating activities.
Payables to related parties in significant amounts shall be presented separately.
If collateral has been provided for trade payables, the name and carrying amount of the collateral shall be noted.
(7) Other payables: Payables other than trade payables, such as tax payable, accrued payroll, and dividends payable.
For dividends and bonuses payable passed by resolution of the shareholders meeting, the distribution method and scheduled payment date, if determined, shall be disclosed.
(8) Current tax liabilities: Unpaid tax for current and prior periods.
(9) Provisions – current: Any liability of uncertain timing or amount.
Provisions shall be accounted for in accordance with IAS 37.
A provision shall be recognized when a company-type futures exchange has a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
A company-type futures exchange shall disaggregate provisions into provisions for employee benefits and other items in the notes.
(10) Liabilities directly associated with non-current assets held for sale: Any liability included in a disposal group held for sale that is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups, and whose sale must be highly probable.
(11) Other current liabilities: Current liabilities not attributable to any of the classes above.
2. Non-current liabilities: Liabilities other than current liabilities.
(1) Bonds payable (including overseas bonds): Bonds issued by a company-type futures exchange.
For issued bonds, the total approved amount, interest rate, maturity date, name of collateral, carrying amount, issuing area, and other relevant terms and restrictions shall be noted in the notes to the financial reports. If the bonds are convertible bonds, the method of conversion and amounts already converted shall also be noted.
Premiums and discounts on bonds payable are valuations of bonds payable. They shall be presented as an addition to or reduction from bonds payable, and shall also be amortized, as an adjustment to interest expenses, using the effective interest method during the period of bond circulation.
(2) Long-term borrowings: Includes long-term borrowings from banks and other long-term borrowings or borrowings repaid in installments. For long-term borrowings, the content, maturity date, interest rate, name of collateral, carrying amount, and any other important restriction terms shall be noted.
For a long-term borrowing repaid in foreign currency or in an amount translated at a foreign exchange rate, the name and amount of such foreign currency shall be noted.
Long-term borrowings from shareholders, employees, and related parties shall be noted separately.
Long-term payables shall be measured at amortized cost using the effective interest method.
(3) Financial liabilities measured at amortized cost – non-current: The non-current portion of financial liabilities measured at amortized cost, other than bonds payable and long-term borrowings.
(4) Deferred tax liabilities: The amounts of income taxes payable in future periods in respect of taxable temporary differences.
(5) Other non-current liabilities: Non-current liabilities not attributable to any of the classes above.
The items described in the preceding paragraph in relation to financial liabilities at fair value through profit or loss, financial liabilities measured at amortized cost, trade payables, and other payables shall be accounted for in accordance with IAS 39.
The items described in paragraph 3 in relation to financial liabilities at fair value through profit or loss, derivative financial liabilities for hedging, and provisions shall be distinguished as current and non-current based on liquidity.Liabilities shall be properly classified. Current and non-current liabilities shall be distinguished.
For each liability line item, the total amount expected to be settled within 12 months after the balance sheet date and the total amount expected to be settled more than 12 months after the balance sheet date shall be separately presented in the financial statements or disclosed in the notes.
As a minimum, the balance sheet shall include the following liability line items:
1. Current liabilities: An company-type futures exchange shall classify a liability as current when it expects to settle the liability in its normal operating cycle; when it holds the liability primarily for the purpose of trading; when it expects to settle the liability when due within 12 months after the balance sheet date, even if an agreement to refinance or to reschedule payments on a long-term basis is completed after the balance sheet date and before the financial statements are authorized for issue; or when it does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
(1) Short-term borrowings: Includes short-term borrowings from banks, overdrafts, and other short-term borrowings.
For short-term borrowing, the nature of the borrowing, the name of the lending bank, the interest rate range, the maturity date, and the guarantee status shall be noted based on the type of borrowing. If collateral is provided, the name and carrying amount of the collateral shall be stated.
Borrowings from financial institutions, shareholders, employees, related parties, and other individuals or institutions shall be separately 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 measured at amortized cost using the effective interest method. However, short-term bills payable with no stated interest rate may be measured at the original face amount if the effect of discounting is immaterial.
For short-term bills payable, the guarantor or accepting institution and the interest rate shall be noted. If collateral is provided, the name and carrying amount of the collateral shall be noted.
(3) Financial liabilities at fair value through profit or loss – current: Financial liabilities that meet either of the following conditions:
(i) Financial liabilities held for trading.
(ii) Financial liabilities that, except for those designated as hedged items under hedge accounting requirements, are designated upon initial recognition as at fair value through profit or loss.
A financial instrument shall be classified as a financial liability held for trading if:
(i) it is incurred principally for the purpose of repurchasing it in the near term;
(ii) it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
(iii) it is a derivative financial liability, except for a derivative financial liability that is a designated and effective hedging instrument.
(4) Derivative financial liabilities for hedging – current: A derivative financial liability that is a designated and effective hedging instrument under hedge accounting requirements. Any such liability shall be measured at fair value.
(5) Financial liabilities measured at amortized cost – current: Financial liabilities that are not:
(i) financial liabilities at fair value through profit or loss;
(ii) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies;
(iii) financial guarantee contracts; or
(iv) commitments to provide a loan at a below-market interest rate.
(6) Trade payables: Payables resulting |
| 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 futures 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 futures exchange held by the company-type futures 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 futures exchange or premiums resulting from share capital transactions between a company-type futures 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).
(i) Legal reserve: A fixed-percentage reserve appropriated as required by the Company Act.
(ii) 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.
(iii) Undistributed earnings (or deficit to be offset): Undistributed and unappropriated earnings ("deficit to be offset" is deficit not yet offset).
(iv) An earnings distribution or offsetting of deficit shall not be accounted for unless and until approved by a 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. |