（Scope of Applicability）
Accounting affairs for business entities must be handled according to the Business Entity Accounting Law (referred to as the "Law").
Accounting affairs for public-owned businesses must be handled according to the Law unless otherwise stipulated by other laws.

（Scope of Business and Accounting Affairs）
The Businesses referred to in the Law refer to profit-making institutions; all business dealings must be in accordance with the Business Registration Act, Corporate laws and other laws.
The Law stipulates the accounting affairs for business entities in regards to must the recognition, measuring, recording, classification, consolidation and composition of financial reports.

（Competent Authority）
According to the Law, competent authorities for the central government refers to the Ministry of Economics, for municipalities it refers to the municipalities government, for city; city government and county; county government.
Competent Authority`s responsibilities are allocated as follows:
1. Competent Authorities in the central government:
(1) The drafting and promotion of business entity accounting laws and policies.
(2) Management of business entity accounting affairs for companies accepted after registration.
2. Municipal Competent Authorities under direct jurisdiction from the central government management of business entity accounting affairs for registrated companies delegated by the central competent authorities and companies accepted for registration.
3. County (city) competent authorities: management of business entity accounting affairs for businesses with accepted registration.

（Business Person-in-Charge）
The scope of business person-in-charge stipulated in the Laws must be in accordance with Corporation Law, Business Registration Act and other law-related provisions.

（Accounting Personnel）
Accounting personnel must be assigned for the handling of accounting affairs.
In regards to appointing or discharging accounting personnel, decisions with-in a limited stock holding corporation must have a majority approval with at least a majority attendance. Pertaining limited companies, the approval of a majority of all the shareholders is required; in regards to unlimited companies or partnership companies, the approval of a majority of all the unlimited-liability shareholders is required.
In regards to the appointment and release of accounting personnel, if there are standards with-in the companies that hold higher precedence over which was just stated above, then the companies standards can be implemented.
Accounting personnel must abide to all laws when dealing with accounting affairs. In the event of release or change of post, the respective job transfer must take place within five (5) days.
The handling of company accounting affairs can be delegated to certified public accountants or individuals with qualifications obtained according to law for the handling of accounting affairs on other`s behalf; procedures for delegations of business entity accounting affairs processing by businesses of corporate organizations can be in accordance with Item 2 and 3.

（Accounting Period）
The accounting period for businesses must start on January 1st of each year and end on December 31st of the same year. However, this does not apply if laws stipulate otherwise or in the event of special needs resulting from operations.

（Bookkeeping Base）
Businesses must use domestic currency as a bookkeeping base. If foreign currency is used for bookkeeping due to business needs, it is still required to convert the foreign currency into domestic currency in the closing report.

（Bookkeeping Language）
Except for Arabic numerals used in numbering, all recording of business transactions must use the domestic language; If it is necessary to include remarks in or concurrently use any foreign language or local language, domestic language must be predominant.

（Payment Tool）
Business transactions above a certain amount, whether it be money order, cashier`s check, business check, appropriate transfer, telegraphic transfer, transfer of accounts or other payment tools or methods must be approved by a competent authority with payee clearly specified.
The central competent authority must announce the certain amount mentioned in the previous paragraph.

（Accounting Basis）
Accrual accounting must be used as an accounting basis; if cash basis is used ordinarily, adjustment using the accrual basis at final accounting must be made.
Accrual basis must mean that entry into the account book must be made when earnings are confirmed receivable and expenses confirmed to be payable. Adjusting journal entries must be made for earnings and expenses in accordance with the year to which they belong.
Cash basis must mean that entries into accounts must be made when earnings are received or expenses are paid in cash.

（Accounting Events）
Events leading to changes in assets, liabilities, equity, income or expenses of a business entity are accounting events.
Accounting events involve rights and obligations to parties other than the business entity are external accounting events. Accounting events do not involve parties other than the business entity are internal accounting events.
Accounting events shall be recorded using the double-entry bookkeeping method.

（Accounting System）
A business may establish its own accounting system based on the actual business operations, nature of accounting affairs, internal control, and management needs.

（Standard of Business Entity Accounting Processing）
Accounting standards set out the name, format, and method of preparation of source documents, accounting items, journals, ledgers and financial statements shall be prescribed by the Central Competent Authority.