Beginning from 1 January 2013, companies listed on the Taiwan Stock Exchange, the GreTai Securities Market, and the Emerging Stock Market, as well as financial services companies regulated by the FSC (collectively, the "first wave of companies to adopt the IFRSs"), are all required to prepare their financial reports in full compliance with International Financial Reporting Standards (IFRSs). To this end, and to help the companies improve the transparency of their financial information and conform to international practices, the FSC has amended relevant laws and regulations for consistency with the IFRSs, and the amendments will be implemented from 2013. These laws and regulations include the Securities and Exchange Act, the Securities and Exchange Act Enforcement Rules, the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the Regulations Governing Establishment of Internal Control Systems by Public Companies, the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, and the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants. The FSC also has set up a website especially to promote the IFRSs and to provide the public with access to educational materials and answers to frequently asked questions about the IFRSs.

The first wave of companies to adopt the IFRSs is required to publicly disclose consolidated operating revenue data in accordance with the IFRSs on a monthly basis beginning in February 2013, and these companies must also publicly disclose and file the IFRS-compliant interim financial report for the first quarter by 15 May 2013. The FSC would like investors to pay special attention to the differences between the IFRSs and the current ROC accounting principles, and to the material information disclosed in the accompanying notes, including, for example, the statement explaining the company''s accounting policies, significant accounting estimations and assumptions, accounting professional judgment, and reconciliation of the differences between the old and new accounting systems.

For the second wave of public companies required to adopt the IFRSs from 2015, the FSC strongly recommends that each company set up a task force as early as possible to develop a plan for conversion to the IFRSs and to keep those charged with corporate governance closely informed of the progress. And to encourage and help the companies gain a better understanding of IFRS-related accounting standards, the FSC will continue with the translation of relevant accounting standards and their revisions, as well as organize promotional activities and educational training to raise awareness among companies of the IFRSs and applicable laws, regulations, and administrative orders.

Contact: Mr. Kou-Jung Cheng, Section Chief, Accounting and Auditing Supervision Division, Securities and Futures Bureau　　
Telephone: 2774-7133
If you have any questions, please feel free to inquire at:
http://fscmail.fsc.gov.tw/FSC-SPS/SPSB/SPSB01002.aspx