Overview of Statutory Framework for Accounting
- Release date / 2019-01-30
- Views / 155
The Securities and Exchange Act (hereinafter referred to as the “Act”) and the Business Entity Accounting Law (hereinafter referred to as the “Law”) set financial reporting requirements for public companies, non-public companies, insurance companies, and financial institutions in R.O.C..
Article 14 of the Act requires the financial reports of public issuer shall be in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and other applicable laws and regulations. Matters not provided for therein shall be governed by International Financial Reporting Standards ratified by Taiwan Government (Hereinafter referred to as the “TIFRS”) in R.O.C, which is converged with IFRS.
The TIFRS described in the preceding paragraph shall mean the followings: International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and Interpretations developed by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC)
Article 13 of the Law requires financial reports of non-public companies shall be prepared in accordance with the Regulation on Business Entity Accounting Handling and other applicable laws and regulations. Matters not provided for therein shall be governed by TIFRS or Enterprise Accounting Standard and its interpretations (hereinafter collectively referred to as the “EAS”) that is issued and developed by the Accounting Research and Development Foundation (ARDF) in R.O.C..
Non-public companies have an option to choose to prepare their financial reports according to either one.