These regulations are enacted under paragraph 2 of Article 19 of the Telecommunications Act.

The terms of these Regulations are defined as follows:
a. "An Operator": A Type I telecommunications enterprise that holds the franchise and the license granted by the Ministry of Transportation and Communications for operation of telecommunications services.
b. "Licensed Segment": The segment, within an Operator, that provides telecommunication services; including both First Category Segment and Second Category segment.
c. "First Category Segment": The segment of the Operator installs telecommunications line facilities and equipment in order to provide telecommunications services.
d. "Second Category Segment": The segment of the Operator does not install telecommunications line facilities and equipment in the provision of telecommunications services.
e. "Other Segment": It refers to any non-telecom services segment run by the Operator.
f. "Related parties": As defined under Statements of Financial Accounting Standards (SFAS) No. Six Accounting for Related Parties, issued by the Financial Accounting Standards Committee of the Accounting Research and Development Foundation of the Republic of China.
g. "Entity Accounting": The accounting principles, accounting policies, and Chart of Accounts prescribed for an Operator to classify and report financial transactions for the Operator as a whole.
h. "Separations Accounting": The concepts, methodologies, as well as practices prescribed for an Operator to attribute its revenues, costs, and assets to individual Licensed Service segments within the Licensed Segment or to Other Segment.
i. "Procedure Manual": A document illustrating the detailed steps an Operator has adopted to implement the requirements of this Code.
j. "Capital cost": The opportunity cost of the funds invested for the provision of telecommunications services.
k. "Jointly acquired asset": An asset that is purchased or constructed with an intention of it being used by an Operator and its related parties, and has limited alternative uses.
l. "Data pool": A mechanism collects data for allocating costs, revenues, and assets, based on their relation to the intermediate activities of providing telecommunication services, or to individual Licensed Service segments.
m. "Driver": A factor that causes costs, assets, and revenues to arise; it is used to measure the extent to which individual Licensed Services consume various economic resources.
n. "Attributable Cost Method": A cost allocation method by which costs are allocated in proportion to the attributable costs of individual Licensed Service segments, including direct and directly attributable as well as indirectly attributable costs.

The authority governing telecommunications accounting matters is the Directorate General of Telecommunications (herein after the DGT) of the Ministry of Transportation and Communications.