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Chapter 1 General Provisions
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〈Basis〉
Article 1 These Regulations are prescribed pursuant to Paragraph 4, Article 24 of the
Foundations Act (referred to as “the Act” hereunder).
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〈Application of Regulations and General Accounting Standards〉
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.
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〈Accounting System〉
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.
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〈Fiscal Year〉
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.
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〈Financial Reports〉
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.
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〈Retention and Destruction of Accounting Documents and Books〉
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.
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Chapter 2 Accounting Documents
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〈Accounting Documents〉
Article 7 Accounting documents include source documents and vouchers. A foundation shall
produce vouchers based on the source documents and make entries into the account
books based on the vouchers. However, events without the source document during
preparation for settlement and transferred into accounts after settlement shall not
be subject to this limitation.
If a source document cannot be obtained due to restrictions or if such a document
is damaged, destroyed, unavailable, or lost, a foundation, in addition to handling
according to the procedures as required by law, must produce a vouchers based on the
fact and amount and have its responsible officer or an assigned personnel sign or
stamp thereon for bookkeeping purpose.
For an accounting event for which the source document cannot be obtained, the
responsible officer of the foundation may order the staff handling and in charge of
the matter to severally or jointly prove such an event.
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〈Document Format〉
Article 8 A foundation shall design on its own the formats of its source documents, including
internal and outgoing documents and except for external documents, based on regulations,
customs or business needs.
External documents and outgoing documents shall contain the following information and
be signed or stamped by the drawer:
1.Name of the document;
2.Date;
3.The name and address or the Unified Business Number of the transacting parties; and
4.Content and amount of the transaction.
Internal documents shall be prepared and kept by the foundation based on the fact and
amount of the transaction.
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〈Content of Voucher〉
Article 9 A voucher shall contain name of the foundation, name, date and serial number of
the voucher, account title, content summary, amount and the number of source
documents attached thereto, and shall be signed or stamped by a relevant personnel.
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〈Safekeeping of Source Documents〉
Article 10 Source documents shall be attached to the vouchers as an appendix. Source documents
that prove the existence of rights and liabilities and are required to be retained
permanently or that are bound separately for convenience may be compiled and kept
separately, categorized and numbered according to the nature or retention period,
specified for cross reference with the date, serial number, keeper, place of custody,
and catalogued with a table of documents for reference.
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〈Safekeeping of Vouchers〉
Article 11 Vouchers shall be bound by the sequence of date or month with a cover to
specify the number of volume, start and end dates, and the number of pages,
and shall be signed or stamped thereon by the manager, head of accounting or
accounting clerk authorized by the responsible officer of the foundation,
appropriately stored and catalogued with a table of vouchers for reference.
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Chapter 3 Accounting Books
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〈Classification of Accounting Books〉
Article 12 Accounting books are classified into the following two types:
1. Account books: Books of records containing facts necessary for the preparation
of financial reports.
2. Memorandum books: Books of records not necessary for the preparation of financial
reports, but to facilitate the review of accounting events or handling of
accounting affairs.
For computer-processed accounting data, the records stored in the computer are regarded
as accounting books that may be printed at any time for reference.
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〈Account Books〉
Article 13 Account books consist of the following two types:
1. Journals: Journals are used principally to record accounting events as occurred
chronologically, including general journals and special journals.
2. Ledgers: Ledgers are used principally to record accounting events according to
the account titles, including general ledgers and subsidiary ledgers.
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〈Table of Account Books〉
Article 14 A foundation shall set up a table of account books to specify the name,
characteristics, first and last dates of usage, which will be signed or stamped
concurrently by the foundation’s responsible officer and accounting clerk.
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Chapter 4 Account Titles and Financial Reports
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〈Establishment of Account Titles〉
Article 15 Account titles shall be established based on the Reference Account Titles
for Foundations Overseen by the Central Bank of the Republic of China (Taiwan)
(see attachment). However, if needed by business, a foundation may add more
account titles in its accounting system.
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〈Content of Financial Reports〉
Article 16 Financial reports shall contain the following information:
1.Financial statements: Including statement of revenues and expenditures, statement
of cash flows, statement of estimated changes in net worth, balance sheet and their
accompanying notes or supplementary schedules.
2.Statement details of major accounts.
3.Any other disclosures and explanatory information helpful to the decision making
of users.
The format of financial report shall follow the Format for Financial Statements of
Foundations Overseen by the Central Bank of the Republic of China (Taiwan) prescribed
in Article 7 of the Regulations Regarding Authorization Provisions of the Foundations
Act by the Central Bank of the Republic of China (Taiwan).
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〈Information To Be Disclosed in Financial Reports〉
Article 17 Financial reports shall include explanatory notes on the following subsequent
events that occur between the balance sheet date and the date when the financial
reports are authorized for issue:
1.Changes in net worth or fund structure.
2.Large long-term or short-term borrowings.
3.The additions, expansion, construction, lease, obsolescence, idling, sale, pledge,
transfer or long-term renting of major assets.
4.Significant changes in business scale or policy.
5.Principal investments in other enterprises.
6.Losses due to major disasters.
7.Major litigation pending or concluded.
8.The signing, completion, voidance or lapse of major contracts.
9.Major organizational adjustments and significant management reforms.
10.Significant effects of changes in government laws and regulations.
11. Other major events or measures capable of affecting future financial position,
financial performance and cash flows.
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Chapter 5 Supplementary Provisions
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〈Effective Date 〉
Article 18 These Regulations shall take effect on February 1, 2019.
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