(*)including the representative of professor、accountant、Taiwan Accounting Research and Development Foundation.
Campaign for IFRS adoption in Taiwan
To encourage businesses to adopt the International Financial Reporting Standards (IFRSs), Taiwan has created a task force responsible for the adoption and implementation of IFRSs, modification of the regulatory and supervision frameworks, and advocacy and training. The tasks associated with the objectives are described as follows:
- Adoption of IFRSs: To obtain permissions of the International Accounting Standards Board (IASB) and start to translate and certify individual standards.
- Implementation of IFRSs: To gather and analyze issues and effects of IFRSs adoption and provide assistance for businesses to resolve the issues; and to modify transparency and reporting guidelines in the information disclosure system.
- Modification of the regulatory and supervision frameworks: To review and amend relevant regulations on preparation of financial reports as more companies adopt IFRSs; and to adjust the supervision system.
- Advocacy and training: To make more people aware of the IFRSs, and organize more training activities (e.g. seminars).
Scope and schedule of the campaign for IFRS adoption
Phase I (IFRS adopted and 2010 version in use)
TWSE/TPEx listed companies, emerging stock companies, and financial institutions under FSC supervision (excluding credit cooperative banks, credit card companies, insurance brokerages and agents) had started following the IFRSs 2010 version in the preparation of financial reports in 2013.
Phase II (IFRS adopted and 2013 version in use)
Companies that completed adoption in Phase I and public companies not listed on TWSE, TPEx, or the Emerging Stock Market had started following the IFRSs 2013 version in the preparation of their financial reports in 2015.
Phase III (ongoing)
Starting from 2017, companies are no longer required to follow a specific version of the IFRSs. Instead, individual standard is assessed and certified, then FSC announce the applicable IFRSs standards each year in the IFRS bulletins. Furthermore, there is an ongoing effort to negotiate with the Ministry of Economic Affairs to encourage non-public companies to adopt the IFRSs in the preparation of their financial reports.