Update on accounting standards in Taiwan
31 Jan 2005
On 9 December 2004, the Accounting Research and Development Foundation (ARDF) in Taiwan has revised Statement of Financial Accounting Standards No. 7 (SFAS No. 7) Consolidated Financial Statements and SFAS No. 5 Long-Term Investments in Equity Securities. SFAS No. 7, which is based on IAS No. 27 (Consolidated and Separate Financial Statements), must be applied to financial statements for the financial year beginning on or after 1 January 2005, with earlier application permitted.
If an entity applies this standard to a period beginning before 1 January 2005, the entity must disclose that fact.
In an effort to harmonise with SFAS No. 7, SFAS No. 5 has been revised. That revision should be applied to financial statements for the financial year beginning on or after 1 January 2005, with earlier application permitted. Financial statements that had been prepared in accordance with the provisions of SFAS No. 5 prior to the revision do not have to be restated retroactively to follow the revised statement.
The ARDF also revised SFAS 1, The Framework of Financial Accounting Concepts and Financial Report Preparation, in the fourth quarter of 2004. That revision, which is in an effort to harmonise with SFAS No. 34, shall be applied to accounting periods beginning on or after 1 January 2006, and earlier application is not permitted. The ARDF invited comments on SFAS No. 1, and the deadline for comments was 15 November 2004.
