Assets shall be properly classified and presented in the order of relative liquidity.
For each asset line item, the total amount expected to be recovered within 12 months after the balance sheet date and the total amount expected to be recovered more than 12 months after the balance sheet date shall be separately disclosed in the notes to the financial statements (referred to as the “Notes” hereunder).
Assets presented in the balance sheet shall include at least the following line items:
1. Cash and cash equivalents:
(1) Cash on hand, demand deposits, and short-term, highly liquid time deposits or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(2) An insurance enterprise shall disclose the components of cash and cash equivalents and the policy which it adopts in determining the composition of cash and cash equivalents.
2. Receivables: Including receivables other than insurance contract assets or liabilities and reinsurance contract assets or liabilities, such as notes receivable, premiums receivable and other receivables.
(1) Notes receivable:
A. These receivables include notes receivables and non-accrual receivables.
B. Notes receivable shall be measured at amortized cost using the effective interest method. However, short-term notes receivables with no stated interest rate may be measured at the original invoice amount if the effect of discounting is immaterial.
C. With respect to discounted or transferred notes receivable, an assessment shall be made to determine whether the risks and rewards of the notes receivables, and the control retained over them will qualify them for derecognition under IFRS 9.
D. Notes receivables arising from operating activities and other notes receivable arising from non-operating activities shall be separately presented. Notes receivables from related parties in significant amounts shall also be separately presented.
E. Notes furnished as security shall be indicated in the Notes.
F. The amount of non-accrual receivables shall be disclosed in the Notes.
(2) Other receivables:
A. These receivables include receivables and non-accrual receivables other than notes receivable and premiums receivable.
B. The amount of non-accrual receivables shall be disclosed in the Notes.
3. Current tax assets: The portion of the tax amount already paid in respect of current and prior periods that exceeds the amount due for those periods.
4. Assets held for sale:
(1) “Assets held for sale” means any asset or asset included in a disposal group held for sale, that is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups), and whose sale must be highly probable.
(2) The measurement, presentation, and disclosure of assets held for sale and disposal groups held for sale shall be made in accordance with IFRS 5.
(3) When assets or disposal groups classified as held for sale no longer meet the criteria in IFRS 5, they shall cease to be classified as held for sale.
(4) When assets or disposal groups meet the definition of held for distribution to owners, they shall be reclassified from held for sale to held for distribution to owners, and shall be deemed an extension of the original disposal plan, and the classification, presentation, and measurement of the new disposal plan shall apply. When the assets or disposal groups classified as held for distribution to owners no longer meet the criteria in IFRS 5, they shall cease to be classified as held for distribution to owners.
5. Financial assets measured at fair value through profit or loss:
(1) These assets refer to financial assets other than those measured at amortized cost or those measured at fair value through other comprehensive income.
(2) Financial assets carried at amortized cost or at fair value through other comprehensive income may be designated as financial assets measured at fair value through profit or loss to eliminate or significantly reduce an accounting mismatch.
6. Financial assets measured at fair value through other comprehensive income:
(1) Debt instrument investments that meet the following conditions simultaneously:
A. The debt instrument is held by the insurance enterprise within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
B. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
(2) Equity investments not held for trading for which an irrevocable election is made at initial recognition to recognize changes in fair value in other comprehensive income (fair value through other comprehensive income).
7. Financial assets measured at amortized cost are assets that meet the following conditions simultaneously:
(1) The debt instrument is held by the insurance enterprise within a business model whose objective is achieved by collecting contractual cash flows; and
(2) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
8. Financial assets for hedging are effective hedging instruments designated as such according to hedge accounting requirements.
9. Investments accounted for using the equity method:
(1) The valuation and presentation of investments accounted for using the equity method shall be made in accordance with IAS 28.
(2) When investment gain or loss is recognized, if the financial report prepared by an associate do not conform to these Regulations, the financial report shall first be adjusted to achieve conformance before it may be used to recognize investment gain or loss. The financial report of an associate to which the equity method applies shall be prepared as of the same date as that of the investor, and if prepared as of a different date, adjustments shall be made for the effects of significant transactions or events that occur between that date and the date of the investor's financial report. However, under no circumstances should the difference between the balance sheet date of the associate and that of the investor be longer than three months. If a CPA determines, pursuant to Standards on Auditing 320, that an associate has a material effect on the fair presentation of the financial report of an investor, the financial report of the associate shall be audited by a CPA in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants and the Standards on Auditing .
(3) If an investment accounted for using the equity method is pledged as collateral or otherwise subject to any restriction or limitation, the fact shall be noted.
10. Other financial assets: Financial assets not attributable to any of the classes above; if the loss allowance is set aside, the financial asset shall be presented on a net basis with the loss allowance deducted.
11. Right-of-use asset:
(1) Means an asset that represents a lessee's right to use an underlying asset for the lease term.
(2) A right-of-use asset shall be accounted for in accordance with IFRS 16.
12. Investment property:
(1) Investment property shall mean property held, by the owner or by the lessee with the right of use, to earn rentals, or for capital appreciation, or both.
(2) Investment property shall be accounted for in accordance with IAS 40, and investment property that is subsequently measured using the fair value model shall be subject to the following provisions:
A. Fair value measurement shall use income approach or cost approach. However the preceding provision does not apply to investment properties that have been subsequently measured after initial recognition using the fair value model prior to the promulgation of the amendment on May 11, 2020, in which case, valuation shall use market value as basis of fair value measurement, and may not be performed based on specific market value, specified market value or special value.
B. An investment property that is leased out with a lease term of more than one year shall be measured using the income approach and subject to the following provisions:
a. Cash flow: Cash flow shall be valued on the basis of existing lease. If there is an end-of-period value, the present value of the end-of-period value may be added.
b. Analysis period: When there is no specified period for the income, the analysis period should not be longer than the years of the property’s physical durability; when there is a specified period for the income, the income shall be estimated for the remainder of the specified period.
c. Discount rate: The discount rate shall be determined using the risk premium approach only, with the calculation based on a certain interest rate, plus an estimate based on the individual characteristics of the investment property. The term "based on a certain interest rate" means the interest rate may not be lower than the floating interest rate offered by the Chunghwa Post Co., Ltd. for 2-year time deposit of a small amount, plus 1.25 percentage points.
C. An investment property without a lease term of more than one year or with a lease that has been terminated, rescinded or nullified for more than one year shall be measured using the cost approach.
D. An insurance enterprise shall, at the time fair value model is adopted for its investment property, engage an external joint appraisers office to assess the value of each and every investment property in accordance with relevant provisions of these Regulations, and at the balance sheet date, engage an appraiser to review the original appraisal report to determine whether to issue a new appraisal report. In addition, an insurance enterprise shall obtain an appraisal report issued by an appraiser at least once every half a year.
E. When the valuation of any single investment property held is above NT$1 billion, an insurance enterprise shall engage at least two joint appraisers offices to conduct the appraisal.
F. Property valuation shall use market value as basis of fair value measurement, and may not be performed based on specific market value, specified market value or special value.
G. If an insurance enterprise uses the fair value model for subsequent measurement of investment property, it shall adopt the same model for all of its investment property in accordance with IAS 40. However for vacant lands, an insurance enterprise shall measure the property in accordance with paragraph 53 of IAS 40 after obtaining construction license and undertaking development, and describe the change in the Notes for the current year.
H. The external joint appraisers office mentioned in Item (2). D. hereof and its appraisers shall perform appraisal in accordance with the relevant Statements of Valuation Standards issued by the Accounting Research and Development Foundation (ARDF), the Real Estate Appraiser Act and the Regulations Governing Real Estate Appraisals as well as appraisal methods and appraisal report contents set out in the technical bulletins issued by the real estate appraisers association, and shall meet the following requirements:
a. The joint appraisers office shall have at least five employees and at least two practicing real estate appraisers who are members of an real estate appraisers association.
b. The appraiser must have at least 5 years of practical experience in real estate appraisal.
c. The appraiser has had the experiencing of participating in the valuation of real estate owned by a domestic company listed on Taiwan Stock Exchange (TWSE) or Taipei Exchange (TPEx).
d. The appraiser has relevant appraisal experience within the past year with respect to the location and category of the investment property being appraised.
e. The appraiser has never received a fixed prison sentence or a more severe punishment from a court due to an offense involving fraud, breach of fiduciary duty, embezzlement, or forgery in connection with real estate appraisal business.
f. The appraiser does not have a related party or substantive related party relationship as defined in IAS 24 with the insurance company requesting valuation service.
g. The appraiser does not have a record of poor credit in connection with negotiable instruments or with debt in the most recent 3 years nor a record of being subject to disciplinary action by a real estate appraiser disciplinary board in the most recent 5 years.
I. The appraiser shall issue a statement undertaking at least that he or she does not have a direct or indirect substantive relationship with the insurance enterprise requesting appraisal service and the legal consequences of failing to comply with applicable laws and regulations or failing to perform due professional care.
J. An insurance enterprise shall establish operating procedures for real estate valuation and include them in its internal control system. The procedures shall encompass the professional qualifications and conditions to be met by the outsourced joint appraisers office and appraisers, obtaining and analysis of information, checking the pertinence of appraised value and external appraisal report and preservation of relevant documents. The documentation regarding the checking of external appraisal report shall present information on which the checking is based and reasons for the conclusion reached, and shall be signed by the responsible officer. In addition, the checking shall cover at least whether the contents of the appraisal report are complete with respect to the following: basic data on the subject property, appraisal date, transactions of comparable properties located in the area of the subject property, assumptions and limitations of the appraisal, appraisal method and procedures, the pertinence of conclusions reached, and appraisal reporting date, whether there is error in the calculation of appraised value, whether assumptions made in the appraisal or reference data quoted are inappropriate or erroneous, and the reasonableness and veracity of appraisal parameters that have significant influence on the appraisal results. The checking documents shall be retained for at least 5 years for future reference of the competent authority.
K. A CPA shall review the appraisal report issued by a joint appraisers office engaged by an insurance enterprise in accordance with Statement of Auditing Standards No. 71 Standards on Auditing 620. The review process performed by the CPA shall be double checked item-by-item by the professional evaluation team in the office the CPA works for so as to confirm the reasonableness of the methods and calculations used and made in the appraisal report.
L. The professional evaluation team at the CPA office described above should include a member meeting ROC’s qualification requirements for real estate appraiser. If not, the CPA office may engage the service of an external real estate appraiser that meets the qualification requirements set out in Item (2). H. hereof.
M. Disclosure of investment property that is subsequently measured using the fair value model, in addition to being handled in accordance with IAS 40, shall include the following information in the Notes:
a. Description of the appropriateness and reasonableness of appraisal methods used and important assumptions and parameters used;
b. If the above information differs substantially from that for prior periods, description of the reason for the difference and the effect on the fair value;
c. If there is a situation provided in IAS 40 paragraph 53, description of reasons therefor and subsequent changes made; and
d. Information on the names of the joint appraisers office and appraiser used, and appraisal date.
(3) If an investment property is pledged as collateral or otherwise subject to any restriction or limitation, the fact shall be noted.
13. Loans: They include insurance contract loans of investment contracts, insurance contract premium of investment contracts and secured loans.
(1) Insurance contract loans of investment contracts: Loans made pursuant to the insurance contract through application by the proposer, with the policy as collateral, for insurance contracts issued by insurance enterprises that meet the definitions for investment contracts specified in IFRS 9.
(2) Insurance contract premium loans of investment contracts: Loans made pursuant to the insurance contract to pay a premium due, for insurance contracts issued by insurance enterprises that meet the definitions for investment contracts specified in IFRS 9.
(3) Secured loans:
A. All loans made in accordance with Article 146-3 of the Act or approved by the competent authority on an ad hoc basis. Secured loans include loans guaranteed by banks, loans backed by pledge or collateral of real property, movable property, or securities, and loans and non-accrual receivable approved by the competent authority on an ad hoc basis.
B. Secured loans of significant amount to related parties shall be presented separately from other loans. An insurance enterprise shall assess impairment loss or uncollectible amount of secured loans on the balance sheet date in accordance with the Regulations for Handling Assessment of Assets, Non-performing Loans, Non-accrual Receivable and Bad Debts by Insurance Enterprises and IFRS 9, with an appropriate amount of loss allowance set aside and non-accrual receivable disclosed in the Notes.
C. Secured loans shall be measured at amortized cost using the effective interest method. However, secured loans may be measured at the original loan amount if the effect of discounting is immaterial.
14. Insurance contract assets: Assets of insurance contracts and investment contracts with discretionary participation features recorded as debit balance after aggregated to insurance contract portfolios recognized pursuant to IFRS 17, Regulations Governing the Setting Aside of Various Reserves by Insurance Enterprises, and Regulations Governing Financial and Business Operations of Professional Reinsurance Enterprises. They include the liability for remaining coverage, the liability for incurred claims, and assets for insurance acquisition cash flows.
15. Reinsurance contract assets: Assets of reinsurance contracts recorded as debit balance after aggregated to reinsurance contracts held portfolios recognized pursuant to IFRS 17, Regulations Governing the Setting Aside of Various Reserves by Insurance Enterprises, and Regulations Governing Financial and Business Operations of Professional Reinsurance Enterprises. They include the asset for remaining coverage and the asset for incurred claims, and the effect of any risk of non-performance by the issuer of the reinsurance contracts.
16. Property and equipment:
(1) “Property and equipment” means tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and that are expected to be used during more than one fiscal year.
(2) Property and equipment shall be subsequently measured using the cost model and accounted for in accordance with IAS 16.
(3) Each component of property and equipment that is significant shall be depreciated separately. The depreciation method used shall reflect the pattern in which the asset's future economic benefits are expected to be consumed. If that pattern cannot be determined reliably, the straight-line method shall be used. The depreciable amount should be allocated on a systematic basis over the asset's useful life.
(4) When items of property and equipment have different useful lives, or provide economic benefits in different ways, or are subject to different depreciation methods or depreciation rates, each class of their material components shall be presented in the Notes.
(5) If a property or equipment is provided as a guarantee, pledged or subject to a lien in accordance with Paragraph 3, Article 143 of the Act with approval of the competent authority, the fact shall be noted.
17. Intangible assets:
(1) An intangible asset is an identifiable non-monetary asset without physical substance that meets the definition of identifiability, control by an entity, and existence of future economic benefits.
(2) Intangible assets shall be subsequently measured using the cost model and accounted for, recognized, measured, and disclosed in accordance with IAS 38.
(3) The amortization method used shall reflect the pattern in which the asset's future economic benefits are expected to be consumed by the entity. If that pattern cannot be determined reliably, the straight-line method shall be used. The amortized amount of an intangible asset shall be allocated on a systematic basis over its useful life.
18. Deferred tax assets: It refers to the amounts of income taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused tax losses, and the carryforward of unused tax credits.
19. Other assets: It refers to assets not attributable to any of the classes above, including prepayments, service contract assets, incremental costs of obtaining a contract, non-operating assets, miscellaneous assets, guarantee deposits paid (including the classes of assets above that are used as deposits), temporary payments and suspense accounts, reinsurance contract performance reserve contributed, deferred expenses, special-purpose funds and other miscellaneous assets.
(1) Prepayments include prepaid expenses, office supplies and other prepayments.
(2) Service contract assets refer to assets recognized pursuant to IFRS 15 in the form of distinct goods or services sold as insurance products by insurance enterprises that have been transferred to customers but for which the insurance enterprises have not yet attained a right to consideration that is unconditioal.
(3) Incremental costs of obtaining a contract are incremental sales costs attributed to the provision of services that are recognized in accordance with IFRS 15. Considerations for recognition method and the end of reporting period should be consistent with related service contracts.
(4) Reinsurance contract performance reserve contributed are performance bonds deposited to various ceding company pursuant to reinsurance contracts.
(5) Impairment or unrecoverable amount of guarantee deposits paid and reinsurance contract performance reserve contributed shall be assessed at balance sheet date with an appropriate amount of loss allowance set aside and non-accrual receivable disclosed in the Notes.
(6) Collaterals and residuals taken over are collaterals or articles originally or additionally provided by borrowers according to law or as agreed to repay the money borrowed. Collateral and residuals taken over shall be stated at the price of possession, and assessed at balance sheet date based on its carrying value or fair value less cost of sale, whichever is lower.
(7) Special-purpose funds are assets set aside for special purposes. The proposal and measure that the appropriation of funds is based on should be noted. Welfare fund set aside in accordance with the Employee Welfare Fund Act shall be recorded as expense.
20. Assets on insurance products - separate account: This is the sum total of assets on insurance product in separate accounts.
The accounting treatment and recognition and measurement of loss allowance for financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, financial assets measured at amortized cost, financial assets for hedging, other financial assets, loans and receivables, insurance contract assets, reinsurance contract assets, and incremental costs of obtaining a contract described in the preceding paragraph shall be carried out in accordance with IFRS 17, IFRS 9, IFRS 15, and IAS 32.
The loss allowance mentioned in the preceding paragraph shall be respectively stated as a deduction from financial assets measured at amortized cost, loans, and receivables. If those items are further classified, the loss allowance shall be stated accordingly.
An insurance enterprise shall assess at each balance sheet date whether there is any objective evidence of impairment for the items described in Paragraph 3 hereof in relation to investments accounted for using the equity method, property and equipment, right-of-use assets, investment property measured using the cost model, and intangible assets. If any such evidence exists, the insurance enterprise shall recognize the amount of impairment loss in accordance with IAS 36. If the recoverable amount of non-financial assets is determined on the basis of fair value less costs of disposal, disclose additional information on the fair value measurement, including the level of fair value hierarchy, valuation techniques, and key assumptions. If the recoverable amount is determined on the basis of value in use, disclose the discount rate for fair value measurement.
The fair value measurement and disclosure of financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, financial assets measured at amortized cost, financial assets for hedging, notes receivable, other receivables, assets held for sale and investment property mentioned in Paragraph 3 hereof shall be carried out in accordance with IFRS 13.

Liabilities shall be properly classified and presented in the order of relative liquidity.
For each liability line item, the total amount expected to be settled within 12 months after the balance sheet date and the total amount expected to be settled more than 12 months after the balance sheet date shall be separately disclosed in the Notes.
Liabilities presented in the balance sheet shall include at least the following line items:
1.Short-term borrowing:
(1)Short-term borrowing includes short-term borrowings from banks, notes and bonds sold under repurchase agreement, and other short-term borrowings.
(2) For short-term borrowing, whether the purpose of borrowing meets the relevant provisions of the Act, the guarantee status and interest rate range shall be noted based on the type of borrowing. If collateral is provided, the name and carrying amount of the collateral and approval number obtained from the FSC when the collateral was provided shall also be noted.
(3) Borrowings from financial institutions, shareholders, employees, related parties, and other individuals or institutions shall be separately noted.
(4)Notes and bonds sold under repurchase agreement are short-term borrowing arising from short-term bills or bonds issued by a financial institution under the mandate of the insurance enterprise for the purpose of fund utilization and with approval of the FSC.
(5) Commercial paper payable and notes and bonds sold under repurchase agreement shall be measured at amortized cost using the effective interest method. However, short-term commercial paper payable with no stated interest rate may be measured at the original face amount if the effect of discounting is immaterial.
2.Payables: Including payables other than insurance contract assets or liabilities and reinsurance contract assets or liabilities such as notes payable, commissions payable, and other payables.
(1) Notes payable:
A.These are all kinds of notes payable. Notes payable shall be measured at amortized cost using the effective interest method. However, short-term notes payable with no stated interest rate may be measured at the original face amount if the effect of discounting is immaterial.
B.Notes payable arising from operating and non-operating activities shall be separately presented.
C.Notes payable of significant amount to banks and related parties shall be separately presented.
D.Notes payable with collateral provided shall have the name and carrying amount of the collateral noted.
E.For notes that are used as security and can be recovered for cancellation at the termination of guarantee responsibility, the nature and amount of the guarantee shall be disclosed in the Notes.
(2)Commissions payable: It includes all commissions, agency fees, and service fees in relation to direct underwriting payable on an accrual basis.
(3)Other payables: It includes any other payable not included under notes payable, claims payable, reinsurance indemnity payable, commissions payable, or due to reinsurers and ceding companies, such as taxes payables, interest payable, dividend and bonus payables, etc. For dividends and bonuses payable passed by resolution of the shareholders meeting, the distribution method and scheduled payment date, if determined, shall be disclosed.
3.Current tax liabilities: Unpaid taxes for current and prior periods.
4.Liabilities directly associated with assets held for sale: Any liability included in a disposal group held for sale that is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups, and whose sale must be highly probable.
5.Financial liabilities measured at fair value through profit or loss mean financial liabilities that meet any of the following conditions:
(1) Financial liabilities held for trading:
A.Liabilities that are incurred principally for the purpose of repurchasing them in the near term.
B.Liabilities that, upon initial recognition, are part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking.
C.Liabilities that are derivative financial liabilities, except for financial guarantee contracts or derivative financial liabilities that are designated and effective hedging instruments.
(2)Financial liabilities measured at fair value through profit and loss for investment contracts: They refer to insurance contracts issued by insurance enterprises that constitute investment contracts and must be recognized as financial liabilities measured at fair value through profit and loss pursuant to IFRS 9.
(3)Financial liabilities that are designated as at fair value through profit or loss.
(4)Financial liabilities measured at fair value through profit or loss shall be measured at fair value. However, with respect to a financial liability designated as at fair value through profit or loss, if the amount of change in the fair value of the financial liability is attributable to change in the credit risk, it shall be recognized in other comprehensive income, unless for the purpose of avoiding accounting mismatch or in the case of loan commitments and financial guarantee contracts, under which circumstances the amount of changes in fair value shall be recognized in profit or loss.
6.Financial liabilities measured at amortized cost refer to liabilities that meet any of the following criteria:
(1)Financial liabilities measured at amortized cost of investment contracts: They refer to insurance contracts issued by insurance enterprises that constitute investment contracts and must be recognized as financial liabilities measured at amortized cost pursuant to IFRS 9.
(2) Other financial liabilities measured at amortized cost: They refer to financial liabilities that do not meet the following criteria:
A.Financial liabilities measured at fair value through profit or loss.
B.Financial liabilities derived when the transfer of financial assets does not meet derecognition criteria or the application of the continuing involvement approach.
C.Financial guarantee contracts.
D.Commitments to provide loans at interest rates below market rates.
E.Financial liabilities measured at amortized cost of investment contracts.
7.Financial liabilities for hedging: A financial liability that is a designated and effective hedging instrument under hedge accounting requirements.
8.Bonds payable: Corporate bonds already issued by the insurance enterprise. Premiums and discounts on bonds payable are valuation items of bonds payable. They shall be reported as an addition to or deduction from the bonds payable, and shall also be amortized as an adjustment to interest expenses using the effective interest method during the period of bond circulation.
9.Preferred shares liability: It means preference (preferred) shares issued that is a financial liability in nature in accordance with IAS 32.
10.Other financial liabilities: Financial liability not attributable to any of the accounts mentioned in Subparagraphs 5 to the preceding subparagraph hereof.
11. Insurance contract liabilities: Liabilities of insurance contracts and investment contracts with discretionary participation features recorded as credit balance after aggregated to insurance contract portfolios recognized pursuant to IFRS 17, Regulations Governing the Setting Aside of Various Reserves by Insurance Enterprises, and Regulations Governing Financial and Business Operations of Professional Reinsurance Enterprises. They include the liability for remaining coverage, the liability for incurred claims, and assets for insurance acquisition cash flows.
12.Reinsurance contract liabilities: Liabilities of reinsurance contracts recorded as credit balance after aggregated to reinsurance contracts held portfolios recognized pursuant to IFRS 17, Regulations Governing the Setting Aside of Various Reserves by Insurance Enterprises, and Regulations Governing Financial and Business Operations of Professional Reinsurance Enterprises. They include the asset for remaining coverage, the asset for incurred claims, and the effect of any risk of non-performance by the issuers of the reinsurance contracts.
13.Provisions:
(1)It means any liability of uncertain timing or amount.
(2)Provisions shall be accounted for in accordance with IAS 37.
(3)A provision shall be recognized when an insurance enterprise has a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
(4)An insurance enterprise shall disaggregate provisions into provisions for employee benefits and other items in the Notes.
14. Lease liabilities:
(1)Means the present value of the lease payments that the lessee has not paid.
(2)Lease liabilities shall be accounted for in accordance with IFRS 16.
15.Deferred tax liabilities: It is the amounts of income taxes payable in future periods in respect of taxable temporary differences.
16.Other liabilities: Other liabilities refers to liabilities not attributable to any of the items above such as advance receipts, service contract liabilities, guarantee deposits and reinsurance contract performance reserves received, special reserves, other reserves, liabilities under trust, agency and guaranty, temporary receipts and suspense accounts, and other miscellaneous liabilities.
(1)Advance receipts are various funds received in advance, including advance premiums or deposits received in advance of services provided. Major categories of advance receipts shall be listed separately, with added notes where any special stipulations are involved.
(2) Service contract liabilities refer to service contract reserves recognized pursuant to IFRS 15 in the form of distinct goods or services sold as insurance products by insurance enterprises and the Regulations Governing the Setting Aside of Various Reserves by Insurance Enterprises.
(3)Reinsurance contract performance reserves received are performance bonds deposited by ceded companies in accordance with the reinsurance contracts signed in association with reinsurance ceded.
(4)Special reserve: This is the special reserve set aside by an insurance enterprise at balance sheet date in accordance with the Act, Compulsory Automobile Liability Insurance Act, Regulations Governing the setting aside of various Reserves by Insurance Enterprises, Regulations Governing Financial and Business Operations of Professional Reinsurance Enterprises and related interpretations.
(5)Other reserves: Other reserves refers to reserves that need to be set aside as required by the competent authority and include changes in reserve for foreign exchange valuation set aside in accordance with these Regulations, Regulations Governing the Setting Aside of Various Reserves by Insurance Enterprises, and related interpretations.
The accounting treatment for financial liabilities measured at fair value through profit or loss, financial liabilities measured at amortized cost, financial liabilities for hedging, payables, insurance contract liabilities, and reinsurance contract liabilities described in the preceding paragraph shall be carried out in accordance with IFRS17, IFRS 9 and IAS 32.
The measurement and disclosure of financial liabilities measured at fair value through profit or loss, financial liabilities measured at amortized cost, financial liabilities for hedging, payables, liabilities directly associated with assets held for sale, and bonds payable described in Paragraph 3 hereof shall be carried out in accordance with IFRS 13.

Equity items, their components, and information to be disclosed in the balance sheet are as follows:
1.Equity attributable to owners of the parent:
(1) Share capital:
A.Capital contributed by shareholders to an insurance enterprise and registered with the competent authority in charge of company registration, but excluding preferred shares in the nature of liabilities.
B.For share capital, the classes, par value per share, the number of shares authorized, the number of shares issued and fully paid, a reconciliation of the number of shares outstanding at the beginning and at the end of the period, the rights, preferences and restrictions attaching to each class of share capital, shares of the insurance enterprise held by the insurance enterprise or by its subsidiaries or associates, shares reserved for issue (or for transfer or conversion) under options and contracts for the sale of shares, and special conditions shall be disclosed in the Notes.
C.If convertible preferred shares or overseas depositary receipts are issued, the issuing area, issuance and conversion methods, converted amount, and special conditions shall be disclosed.
(2) Capital surplus:
A.It means the equity components of financial instruments issued by an insurance enterprise or premiums resulting from share capital transactions between an insurance enterprise and its owners, which typically includes premium in excess of the par value of the shares issued, treasury shares traded, donated surplus, and others arising as a result of regulatory provisions associated with these Regulations.
B.Capital surpluses shall be presented separately according to their nature; if there is any restriction on their use, the restriction shall be disclosed in the Notes.
(3)Retained earnings (or accumulated deficit): Equity resulting from operating activities, including legal reserves, special reserves, and undistributed earnings (or deficit to be offset).
A.Legal reserve: A fixed-percentage reserve to be appropriated in accordance with the Act and the Company Act.
B.Special reserve: A reserve appropriated from earnings in accordance with the Act, Regulations Governing the setting aside of various Reserves by Insurance Enterprises, Regulations Governing Financial and Business Operations of Professional Reinsurance Enterprises, as well as relevant regulations, contracts, or articles of incorporation, or as resolved at the shareholders meetings.
C.Undistributed earnings (or deficit to be offset): Undistributed and unappropriated earnings ("deficit to be offset" is deficit not yet offset).
D.An earnings distribution or deficit offset shall not be accounted for unless and until approved by a shareholders meeting. However, an earnings distribution or deficit offset proposed before the financial reporting date shall be disclosed in the Notes for the period.
(4)Other equity: It includes the accumulated balances of exchange differences resulting from translating the financial statements of a foreign operation, of gain or loss from financial assets measured at fair value through other comprehensive income, of gain and loss on hedging instruments, of revaluation surplus, insurance finance income or expenses recognized in other comprehensive income, and finance income or expenses from reinsurance contracts held recognized in other comprehensive income.
(5)Treasury shares: Treasury shares shall be accounted for using the cost method and presented as a deduction from equity. The number of shares shall be noted.
2. Non-controlling interest:
(1)It means the equity in a subsidiary not attributable, directly or indirectly, to a parent.
(2)For each business combination, the components of non-controlling interest in the acquiree shall be measured in accordance with IFRS 3.
(3)An insurance enterprise shall disclose information on any subsidiary in which it has a non-controlling interest of materiality and on the non-controlling interest in accordance with IFRS 12.
An insurance enterprise may elect to recognize the remeasurements of defined benefit plans in retained earnings or other equity, and disclose the accounting policy in the Notes. Remeasurements of defined benefit plans that have been recognized in other equity may not be reclassified into profit or loss or transferred into retained earnings in a subsequent period.