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Taiwan

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Financial reporting framework in Taiwan

On 14 May 2009, the Financial Supervisory Commission (FSC) of Taiwan announced a roadmap for the full adoption of IFRSs in Taiwan:

  • In Phase I, listed companies and financial institutions, except credit cooperatives, credit card companies, and insurance intermediaries, have been required to prepare financial reports using IFRS as endorsed by the FSC since in 2013. Early adoption was allowed in 2012 for those companies that met specific criteria and with the approval of the FSC.
  • In Phase II, unlisted public companies (i.e. companies that are subject to the Securities and Exchange Act and the FSC's supervision although their shares are not listed), credit cooperatives, credit card companies, and insurance intermediaries are required to prepare financial reports using IFRS as endorsed by the FSC starting in 2015 and are permitted to apply them starting in 2013.
In endorsing IFRS for the use in Taiwan, the FSC has eliminated some options and the mandatory effective dates of some standards have been deferred beyond the effective dates adopted by the IASB:
  • The options to revalue property, plant and equipment (IAS 16 Property, Plant and Equipment), intangible assets (IAS 38 Intangible Assets), and exploration and evaluation assets (IFRS 6 Exploration for and Evaluation of Mineral Resources) through other comprehensive income have been eliminated.
  • Some conditions are imposed on using the deemed cost exemption described in IFRS 1 First-time Adoption of International Financial Standards.
  • The effective dates of the following new/modified standards were deferred to 1 January 2015: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements, IAS 28 Investments in Associates and Joint Ventures, and IFRS 13 Fair Value Measurement.

All companies that were covered in Phase I and Phase II have to apply IFRSs as endorsed by the FSC. Only domestic companies whose equity securities also trade in another country may use IFRSs as issued by the IASB.  If a company decides to do so it has to disclose the reconciliation from IFRSs as issued by the IASB to the IFRSs as endorsed by FSC.

Private companies that are not subject to Securities and Exchange Act nor the FSC’s supervision, but are subject to the administration of Ministry of Economic Affairs can choose to apply local standards (ROC GAAP) or IFRSs as endorsed by FSC.

 

Taiwanese translations

Deloitte & Touche in Taiwan translates selected issues of our IFRS in Focus Newsletter and its predecessor, our IAS Plus Update Newsletter, into traditional Chinese. Previous newsletters in Chinese are available via the Deloitte Taiwan IFRS website newsletter page.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.