Adoption Scope and Timetable

A.The FSC announced the launch of IFRSs adoption on May 14th, 2009 and took a two-stage approach to achieve it.

Phase one adopters: listed companies and financial institutions supervised by the FSC, except for credit cooperatives, credit card companies, insurance broker companies and insurance agent companies. The Phase one adopters were required to prepare financial statements in accordance with 2010-version Taiwan-IFRSs starting from January 1, 2013 and allowed to adopt it earlier.

Phase two adopters: unlisted public companies, credit cooperatives and credit card companies. The Phase two adopters were required to prepare financial statements in accordance with Taiwan-IFRSs starting from January 1, 2015 and allowed to adopt it starting from January 1, 2013.

B.Taiwan shifted to 2013-version Taiwan-IFRSs, excluding IFRS 9’’ Financial Instruments’’ in 2015. Phase one and two adopters were required to adopt the new version Taiwan-IFRSs.

C.Following the practices in European Union, Taiwan has adopted an endorsement approach since 2017 so that newly released IFRSs will be endorsed by the FSC on a standard by standard basis and then be applicable to the preparation of financial statements for all public companies.

 

Adoption Method

A.Regulations

Continued translation of newly released (revised) IFRSs: the Accounting Research and Development Foundation is engaging in the translation for the Taiwan-IFRSs on a standard by standard basis. The translation shall be publicized after adequate review by the FSC and shall be used by companies as the basis for the compilation of financial statements. IFRSs which have not been endorsed by the FSC can also be downloaded in the ‘’International financial reporting standards (IFRSs) for download’’ section.

B.Supervision

The FSC keep revising ‘’Regulations Governing the Preparation of Financial Reports by Securities Issuers’’ to align with the latest IFRSs. The FSC, Taiwan Stock Exchange, Taipei Exchange formed the ‘’IFRSs Task Force’’ in 2008 to evaluate the impact of newly released IFRSs and draft relevant guidance and FAQs for reference.

C.Entrepreneurial side

Hold IFRSs seminar to clarify and explain the differences between versions, as well as to educate retail investors about IFRSs.