萬國法律事務所

In preparation for Taiwan’s coming adoption of the International Financial Reports Standards (IFSRs), the Taiwan Stock Exchange (TWSE) recently explained how these new accounting rules will affect commercial practices with respect to self-declared financial statements in Taiwan.

According to the IFSRs, a listed company’s financial statement can be subject to audit and certification by a certified public accountant only after it has been approved by said company’s Board of Directors. However, the current general practice in Taiwan is contrary to this. That is, listed companies in Taiwan currently have their financial statements audited and certified by a certified public accountant first, and then submit such statements for approval by the companies’ Boards of Directors.

After adoption of the IFSRs, if a listed company’s Board of Directors choose to disclose the company’s financial statement prior to the audit and certification of a certified public accountant, such statement can only be listed as a “self-declared financial statement” on the Market Observation Post System, and a listed company will be fully responsible for any results of such self declaration.