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

Chapter 1　　General Provisions

Article 1 
These Regulations are prescribed pursuant to Paragraph 4, Article 24 of the 
Foundations Act (referred to as “the Act” hereunder).

Article 2
Foundations overseen by the Central Bank of the Republic of China (Taiwan) (referred 
to as "the Bank" hereunder) shall handle their accounting and prepare financial 
reports in accordance with the Act, these Regulations and applicable laws and 
regulations. Matters not provided for therein shall be handled in accordance with 
generally accepted accounting principles.
The generally accepted accounting principles mentioned in the preceding paragraph 
shall mean the Enterprise Accounting Standards (EAS) and interpretations thereof. 
Notwithstanding the foregoing, a foundation may, out of actual business needs, 
adopt International Financial Reporting Standards (IFRS), International Accounting 
Standards (IAS), and Interpretations developed by the International Financial 
Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations 
Committee (SIC) recognized by the Financial Supervisory Commission.

Article 3
A foundation shall establish an accounting system based on the nature of its 
accounting affairs, actual business status, and development and management needs, 
and report its accounting system to the Bank for record. 
The accounting system referred to in the preceding paragraph shall contain the 
following particulars:
1. A general description;
2. A chart of journals and ledgers;
3. Account titles;
4. Accounting documents;
5. Accounting books;
6. Financial reports;
7. Treatment of accounting affairs; and
8. Internal audit.

Article 4
A foundation shall use calendar year as its fiscal year; adopt accrual-based 
accounting; use New Taiwan Dollar (NTD) as basic monetary unit for book-keeping 
and the figure shall be rounded to the nearest integer.

Article 5 
Financial reports shall present fairly the financial position, financial performance, 
and cash flows of a foundation without being misleading to interested parties in 
making judgments and decisions. 
If a financial report violates these Regulations or any other applicable requirements, 
for which the Bank gives a notice requiring adjustment to be made, a foundation shall 
make the required adjustment and correction and submit the adjusted financial report 
to the Bank for record.

Article 6
The retention and destruction of accounting documents, account books, significant 
memorandum books and financial reports shall be carried out according to the 
following provisions:
1.All accounting documents shall be retained for at least five years from the date 
　annual financial reports are submitted to the Bank for record. Upon the expiration 
　of the retention period, accounting documents, except for those relating to 
　unsettled claims and debts, may be destroyed after obtaining the consent of the Bank.
2.All account books, significant memorandum books and financial reports shall be 
　retained for at least ten years from the date annual financial reports are 
　submitted to the Bank for record and their destruction upon the expiration of the 
　retention period requires the prior consent of the Bank.