The consolidated financial statements of the affiliates shall be prepared in accordance with these Criteria and applicable laws and regulations. Matters on which the Criteria and applicable laws and regulations are silent shall be governed by the Generally Accepted Accounting Principles published by the Accounting Research and Development Foundation of the Republic of China.

The consolidated financial statements of the affiliates shall include consolidated balance sheets for the affiliates and consolidated profit-loss statements of the affiliates, and the notes or tables appended thereto. These may be prepared as single-period statements.

Provisions governing the preparation of consolidated financial statements of affiliates by a controlling company that holds more than half of the total issued voting shares or total capital of a subordinate enterprise shall apply mutatis mutandis to the preparation of the same by a controlling company that holds no more than half of the total issued voting shares or total capital of a subordinate enterprise, or that holds no issued voting shares or capital contribution in the subordinate enterprise.

The notes appended to the consolidated financial statements of the affiliates shall disclose for the affiliates as a whole the below-listed particulars as well as other particulars provided by laws and regulations and Generally Accepted Accounting Principles:
1. The names of subordinate companies, a description of their relationship with the controlling company, the nature of their business, and the controlling company's shareholding or capital contribution ratio in each.
2. Increases, decreases, or changes in the subordinate companies included in the current consolidated financial statements of the affiliates.
3. The names and shareholding or capital contribution ratios of subordinate companies not listed in the current consolidated financial statements for affiliates and the reasons they are not included in the consolidated statements.
4. The adjustment method and treatment adopted if the opening and closing dates of the subordinate company's accounting year are different from those of the controlling company.
5. An explanation of any differences in accounting policies between the subordinate companies and the controlling company. The method and substance of adjustments adopted in the event of any non-conformity with the Generally Accepted Accounting Principles of the Republic of China.
6. Special operational risks of overseas subordinate companies, such as exchange rate fluctuations.
7. Statutory or contractual restrictions on distribution of earnings by the various affiliates.
8. Amortization methods and period for consolidated borrowings (loans).
9. Other matters of significance or explanations that would contribute to the fair presentation of the consolidated financial statements of the affiliates.

The notes to the consolidated financial statements for affiliates shall disclose the below-listed particulars for the controlling company and subordinate company respectively. Disclosure shall not be required, however, in instances where a subordinate company's total assets and operating revenue are each less than 10 percent those of the controlling company.
1. Transactions that have been eliminated between the controlling company and subordinate companies or between subordinate companies.
2. Information regarding financing, endorsements, and guarantees.
3. Information regarding trading in derivative products.
4. Significant contingent matters.
5. Significant subsequent events.
6. Names of bills and securities held, and their quantities, cost, market value (or net par value if a bill or security does not have a market value), shareholding or capital contribution ratio, description of any pledges, and the highest amount of shareholding or capital contribution during the period.
7. Other matters of significance or explanations that would contribute to a fair presentation of the consolidated financial statements of the affiliates.