Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Chapter IV.　　Budgets and Fiscal Reports

Article 40
　Before the beginning of each fiscal year, the Bank shall prepare a draft
budget for examination and adoption by the Board of Directors, the
adopted budget shall be processed in accordance with the Budgeting Law.

Article 41
　After the close of each fiscal year, the Bank shall prepare fiscal reports
for examination and adoption by the Board of Directors. The adopted
reports shall be examined and approved by the Board of Supervisors, and
processed in accordance with the Fiscal Reporting Law.

Article 42
　At the close of each fiscal year, the Bank shall set aside fifty per cent of
its net profit as legal reserve. In case the amount of the accumulated
legal reserve equal or exceed of the Bank's current capital, the percentage
herein prescribed may, subject to the resolution of the Board of Directors
and the concurrence of the Board of Supervisors, be reduced to a level
no lower than twenty per cent.

Article 43
 

　The gain or loss from the Bank's assets or liabilities denominated in gold,
silver, foreign currencies and other forms of international reserve,
resulted from changes in parity of the national currency, or changes in the
value, parity or exchange rate of these assets and liabilities relative to
the national currency, shall not be listed in the Bank's annual income
stateatement.

　Any gain from the above changes shall be posted in the Exchange Reserve
Account, and any loss shall be offset in the balance of that Account.