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

Chapter IV　　Budget and Financial Statement

Article 40
　Before the beginning of each fiscal year, the Bank shall prepare a budget 
estimate. The budget estimate shall be examined by the Board of Directors 
and processed in accordance with the Budget Act.

Article 41
　After the close of each fiscal year, the Bank shall settle all accounts 
and prepare financial statements. The financial statements shall be examined 
by the Board of Directors, examined and approved by the Board of Supervisors, 
and processed in accordance with the Financial Statement Act.

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 equals or exceeds 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.