Assets shall be properly classified. Current and non-current assets shall be distinguished.
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 presented in the financial reports or disclosed in the notes.
Current asset means that the FCM expects to realize the asset, or intends to sell or consume it, in its normal operating cycle; that it holds the asset primarily for the purpose of trading; that it expects to realize the asset within 12 months after the balance sheet date; or that the asset is cash or a cash equivalent, unless the asset is to be used for an exchange or to settle a liability, or otherwise remains restricted, at more than 12 months after the balance sheet date. As a minimum, current assets shall include the following asset line items:
1. Cash and cash equivalents:
A. 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.
B. An FCM 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. Financial assets measured at fair value through profit or loss – current, shall be classified as securities, open-end funds, money market instruments, options contracts, or futures trading margins:
A. Financial assets not measured at amortized cost or at fair value through other comprehensive income.
B. Financial assets measured at amortized cost or at fair value through other comprehensive income, which may be designated as financial assets measured at fair value through profit or loss according to IFRS 9.
C. "Futures trading margins – securities" means securities posted as trading margins or premiums by an FCM conducting futures dealing business, or by a domestic enterprise exclusively engaged in futures brokerage business that conducts futures trading with its own funds.
D. "Futures trading margins – securities" means securities posted as trading margins or premiums by an FCM conducting futures dealing business, or by a domestic enterprise exclusively engaged in futures brokerage business that conducts futures trading with its own funds.
E. "Futures margins – own funds" means trading margins and premiums, and the related settlement differences, paid by an FCM conducting futures dealing business, or by a domestic enterprise exclusively engaged in futures brokerage business that conducts futures trading with its own funds.
F. "Bought options" means premiums paid by an FCM to buy options contracts or futures options contracts.
3. Financial assets measured at fair value through other comprehensive income - current:
A. Debt instrument investments that meet all of the following conditions:
a. The FCM holds the financial assets within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
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.
B. Equity investments not held for trading, for which the FCM has irrevocably elected at initial recognition to present changes in fair value in "other comprehensive income," and which may not be reclassified thereafter.
C. The FCM shall establish evaluation and assessment working procedures and collect reasonable supporting information with respect to its business model and contractual cash flows for financial instruments that it holds and with respect to its equity investments not held for trading, and related control measures shall be incorporated into its accounting system.
4. Financial assets measured at amortized cost – current, meaning that all of the following conditions are met:
A. The FCM holds the financial assets within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
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.
C. The FCM shall establish evaluation and assessment working procedures and collect reasonable supporting information with respect to its business model and contractual cash flows for financial instruments that it holds, and related control measures shall be incorporated into its accounting system.
5. Financial assets for hedging – current:
A. Financial asset that is a designated and effective hedging instrument under hedge accounting requirements.
B. The FCM shall classify these financial assets as derivative instruments or as non-derivative financial assets measured at fair value through profit or loss or not measured at fair value through profit or loss.
6. Customer margin accounts: Trading margins and premiums, and the related settlement differences, collected from futures traders in accordance with applicable requirements by an FCM conducting futures brokerage business.When the balance of customer margin accounts does not match that of futures traders' equity, the reason for the difference shall be indicated in the notes.
7. Futures trading margins receivable: Any amount to be recovered by an FCM for a debit balance in futures traders' equity.
8. Deposits for securities borrowed: Guarantee amounts deposited in Securities Borrowing and Lending transactions, either for borrowing underlying securities from the holders or for short selling on an exchange market.
9. Collateral for securities borrowed: Collateral posted in Securities Borrowing and Lending transactions, either for borrowing underlying securities from the holders or for short selling on an exchange market.
10. Trade receivables: Means the FCM has an unconditional contractual right to consideration for services that have been transferred.
A. Trade receivables shall be measured in accordance with IFRS 9. However, short-term trade receivables with no stated interest rate may be measured at the original invoice amount if the effect of discounting is immaterial.
B. With respect to discounted or transferred trade receivables, an assessment shall be made to determine whether the risks and rewards of the trade receivables, and the control retained over them, will qualify them for derecognition under IFRS 9.
C. Trade receivables from related parties in significant amounts shall be presented separately.
D. The FCM shall disclose an aged analysis of trade receivables.
11. Other receivables: Receivables other than trade receivables, including claims arising from out-trades.
12. 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.
13. Prepayments: All prepayments and prepaid expenses.
14. Non-current assets held for sale:
A. Any non-current 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 disposal groups, and whose sale must be highly probable.
B. The measurement, presentation, and disclosure of non-current assets held for sale and disposal groups held for sale shall be made in accordance with IFRS 5.
C. When non-current 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.
D. 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.
15. Other current assets: Current assets not attributable to any of the classes above.
Non-current assets: Tangible, intangible and financial assets of a long-term nature, other than assets classified as current. As a minimum, non-current assets shall include the following asset line items:
1. Investments accounted for using the equity method:
A. The valuation and presentation of investments accounted for using the equity method shall be made in accordance with IAS 28.
B. When investment gain or loss is recognized, if the financial reports prepared by an associate do not conform to these Regulations, those financial reports shall first be adjusted to achieve conformance before they may be used to recognize investment gain or loss. The financial reports of an associate used in applying the equity method 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 material transactions or events that occur between that date and the date of the investor's financial reports. In no case shall there be more than 3 months difference between the balance sheet date of the associate and that of the investor. If a CPA determines, pursuant to Standards on Auditing 320, that an associate has a material effect on the fair presentation of the financial reports of an investor, the financial reports of the associate shall be audited by a CPA in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing.
C. If an investment accounted for using the equity method is pledged as collateral or otherwise subject to any restriction or limitation, that fact shall be noted.
2. Property and equipment:
A. Tangible asset items 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 1 financial year or 1 operating cycle.
B. Property and equipment shall be subsequently measured using the cost model and accounted for in accordance with IAS 16.
C. 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.
D. 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, the notes to the financial reports shall show each class of their material components.
3. Right-of-use assets:
A. Means an asset that represents a lessee's right to use an underlying asset for the lease term.
B. A right-of-use asset shall be accounted for in accordance with IFRS 16.
4. Investment property:
A. Means property that is held by the owner or that is held by the lessee with the right of use, to earn rentals, or for capital appreciation, or both.
B. Investment property shall be accounted for in accordance with IAS 40. If the investment property is subsequently measured at fair value, the valuation model, qualifications of the appraiser, and information disclosure shall comply with Article 9, paragraph 4, subparagraph 4 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
5. Intangible assets:
A. An identifiable non-monetary asset without physical substance that meets the definition of identifiability, control, and existence of future economic benefits.
B. Intangible assets shall be subsequently measured using the cost model and accounted for in accordance with IAS 38.
C. The amortization method used shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the FCM. 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.
6. Deferred tax assets: 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.
7. Other non-current assets: Non-current assets not attributable to any of the classes above.The major line items under other non-current assets are as follows:
A. Operating bond: The operating bond deposited in accordance with Article 60 of the Futures Trading Act.
B. Settlement and clearing funds: Settlement and clearing funds deposited in accordance with the Futures Trading Act and other applicable requirements.
C. Refundable deposits: All other guarantee deposits paid out as refundable deposits.
D. Deferred debits: Long-term prepaid expenses that have future economic benefits and are required to be amortized over future periods.
E. Accounts with branches: To be used when there is a debit balance in transactions between the head office and branches, if an FCM has branches.
F. Accounts with head office: To be used when there is a debit balance in transactions between the branches and head office of an FCM.
G. Intra-entity accounts: To be used when there is a debit balance in transactions between the futures segment and any other segment, in the case of an enterprise from another industry that concurrently conducts futures business.
The accounting treatment and the recognition and measurement of loss allowances of the items described in the preceding two paragraphs in relation to 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, futures trading margins receivable, trade receivables, and other receivables shall be in accordance with IFRS 9. Loss allowances shall be classified respectively as deductions from financial assets measured at amortized cost, futures trading margins receivable, trade receivables, and other receivables. If those classifications are further subclassified, the loss allowances thereof shall also be presented respectively in the same manner.
An FCM shall assess as of each balance sheet date whether there is any objective evidence of impairment for the items described in paragraphs 3 and 4 in relation to investments accounted for using the equity method, property and equipment, right-of-use assets, investment property measured using cost model, and intangible assets. If any such evidence exists, the FCM shall recognize the amount of any 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 the extra information regarding the fair value measurement, including the level of the fair value hierarchy, the valuation techniques, and the key assumptions. If the recoverable amount is determined on the basis of value in use, disclose the discount rate for value in use measurement.
With respect to the items described in paragraph 3 and paragraph 4 in relation to financial assets 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, customer margin accounts, trade receivables, other receivables, non-current assets held for sale, and investment property, the measurement and disclosure of fair value shall be made in accordance with IFRS 13.
The items described in paragraphs 3 and 4 in relation to financial assets at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, financial assets measured at amortized cost, and financial assets for hedging, shall be distinguished as current and non-current based on liquidity.

Liabilities shall be properly classified. Current and non-current liabilities shall be distinguished.
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 presented in the financial reports or disclosed in the notes.
Current liability means that the FCM expects to settle the liability in its normal operating cycle; that it holds the liability primarily for the purpose of trading; that it expects to settle the liability when due within 12 months after the balance sheet date, even if an agreement to refinance or to reschedule payments on a long-term basis is completed after the balance sheet date and before the financial reports are authorized for issue; or that it does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. As a minimum, the current liabilities shall include the following line items:
1. Short-term borrowings:
A. Includes short-term borrowings from banks, overdrafts, and other short-term borrowings.
B. For short-term borrowing, the nature of the borrowing, the guarantee status, and the interest rate range shall be noted based on the type of borrowing. If collateral is provided, the name and carrying amount of the collateral shall be noted.
C. Borrowings from non-financial institutions made in accordance with Article 21 of the Regulations Governing Futures Commission Merchants shall be presented separately.
2. Commercial paper payable:
A. Commercial paper issued through financial institutions to acquire funds from the money market.
B. Commercial paper payable shall be measured at amortized cost using the effective interest method. However, commercial paper payable with no stated interest rate may be measured at the original face amount if the effect of discounting is immaterial.
C. For commercial paper payable, the guarantor or accepting institution and the interest rate shall be noted. If collateral is provided, the name and carrying amount of the collateral shall be noted.
3. Financial liabilities at fair value through profit or loss – current:
A. Financial liabilities held for trading:
a. Liabilities that are incurred principally for the purpose of repurchasing it 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 pattern of short-term profit-taking; or
c. Financial liabilities except for financial guarantee contracts or financial liabilities that are designated and effective hedging instruments.
B. Financial liabilities that are designated as at fair value through profit or loss.
C. Financial liabilities 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.
4. Financial liabilities for hedging – current:
A. A financial liability that is a designated and effective hedging instrument under hedge accounting requirements.
B. The FCM shall classify these as derivative instruments or as non-derivative financial liabilities measured at fair value through profit or loss or not measured at fair value through profit or loss.
5. Futures traders' equity:
A. Trading margins and premiums, and the related settlement differences, deposited by futures traders.
B. When a debit balance arises on futures traders' equity, it shall be accounted for as futures trading margins receivable.
C. When the balance of futures traders' equity does not match that of customer margin accounts, the reason for the difference shall be indicated in the notes.
6. Trade payables:
A. Payables resulting from business operations.
B. Trade payables shall be measured at amortized cost using the effective interest method. However, short-term trade payables with no stated interest rate may be measured at the original invoice amount if the effect of discounting is immaterial. <li>Trade payables to related parties in significant amounts shall be presented separately.
C. Other payables: Payables other than trade payables, such as tax payable, accrued payroll, dividends payable, and accrued cash dividends collected for others.
7. For dividends and bonuses payable passed by resolution of the board of directors or a shareholders meeting in accordance with the Company Act, the distribution method and scheduled payment date shall be noted.
8. Current tax liabilities: Unpaid tax for current and prior periods.
9. Provisions –current:
A. Any liability of uncertain timing or amount.
B. Provisions shall be accounted for in accordance with IAS 37.
C. A provision shall be recognized when an FCM 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.
D. An FCM shall disaggregate provisions into provisions for employee benefits and other items in the notes to the financial reports.
10. Liabilities directly associated with non-current 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.
11. Other current liabilities: Current liabilities not attributable to any of the classes above, such as bonds payable and long-term borrowings that become due within 1 year.
Non-current liabilities means liabilities other than current liabilities. As a minimum, the non-current liabilities shall include the following line items:
1. Bonds payable (including overseas bonds):
A. For bonds issued by an FCM, the total approved amount, interest rate, maturity date, name of collateral, carrying amount, issuing area, and other relevant terms and restrictions shall be indicated in the notes to the financial reports. If the bonds are convertible bonds, the method of conversion and amounts already converted shall also be noted.
B. Premiums and discounts on bonds payable are valuations of bonds payable. They shall be presented as an addition to or deduction from bonds payable, and shall also be amortized, as an adjustment to interest expenses, using the effective interest method during the period of bond circulation.
2. Long-term borrowings:
A. For long-term borrowings, the content, maturity date, interest rate, name of collateral, carrying amount, and any other important restriction terms shall be noted.
B. For a long-term borrowing repaid in a foreign currency or in an amount translated at a foreign exchange rate, the name and amount of such foreign currency shall be noted.
C. Long-term notes payable and other long-term payables shall be measured at amortized cost using the effective interest method.
3. Lease liabilities:
A. Means the present value of the lease payments that the lessee has not paid.
B. Lease liabilities shall be accounted for in accordance with IFRS 16.
4. Deferred tax liabilities: The amounts of income taxes payable in future periods in respect of taxable temporary differences.
5. Other non-current liabilities: Non-current liabilities not attributable to any of the classes above. The major line items under other non-current liabilities are as follows:
A. Refundable deposits: All other guarantee deposits received as refundable deposits.
B. Accounts with branches: To be used when there is a credit balance in transactions between the head office and branches, if an FCM has branches.
C. Accounts with head office: To be used when there is a credit balance in transactions between the branches and head office of an FCM.
D. Intra-entity accounts: To be used when there is a credit balance in transactions between the futures segment and any other segment, in the case of an enterprise from another industry that concurrently conducts futures business.
The items described in the preceding two paragraphs in relation to financial liabilities at fair value through profit or loss, financial liabilities for hedging, trade payables, and other payables shall be accounted for in accordance with IFRS 9.
With respect to the items described in paragraphs 3 and 4 in relation to financial liabilities at fair value through profit or loss, financial liabilities for hedging, futures traders' equity, trade payables, other payables, bonds payable, and long-term borrowings, the measurement and disclosure of fair value shall be made in accordance with IFRS 13.
The items described in paragraphs 3 and 4 in relation to financial liabilities at fair value through profit or loss, financial liabilities for hedging, lease liabilities, and provisions shall be distinguished as current and non-current based on liquidity.

Equity items, their components, and information to be disclosed in the balance sheet are as follows:
1. Equity attributable to owners of the parent:
A. Share capital:
a. Capital contributed by shareholders to an FCM 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 in the FCM held by the FCM 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.
B. Capital surplus: Means the equity components of financial instruments issued by an FCM or premiums resulting from share capital transactions between an FCM and its owners, including premium in excess of the par value of the shares issued, donated surplus, and others arising as a result of regulatory provisions associated with these Regulations. 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.
C. 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 appropriated as required by the Company Act.
b. Special reserve: A reserve appropriated from earnings in accordance with the requirements of applicable laws and regulations, contracts, or articles of incorporation, or as resolved at 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 offsetting of deficit shall not be accounted for unless and until passed by a resolution of the board of directors or a shareholders meeting in accordance with the Company Act. However, when an earnings distribution or offsetting of deficit has been proposed, such shall be disclosed in the notes to the financial reports for the current period.
D. Other equity: Includes the accumulated balances of exchange differences resulting from translating the financial statements of a foreign operation, of unrealized gains or losses from financial assets measured at fair value through other comprehensive income, of gains and losses on hedging instruments, and of revaluation surplus.
E. 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:
A. The equity in a subsidiary not attributable, directly or indirectly, to a parent.
B. For an FCM during acquisition, the components of non-controlling interest in the acquiree shall be measured in accordance with IFRS 3.
C. An FCM shall disclose information on any subsidiary in which the FCM has a non-controlling interest of materiality and on the non-controlling interest in accordance with IFRS 12.
In the case of an enterprise from another industry that concurrently conducts futures business, when preparing financial statements for its futures segment in accordance with Article 8 of these Regulations, it shall separately present the operating capital earmarked for use in the futures segment under equity items.
An FCM 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.

Equity items, their components, and information to be disclosed in the balance sheet of a foreign FCM are as follows:
1. Operating capital: Capital earmarked by a foreign FCM for exclusive use by its ROC branches in their business operations.
2. Accumulated earnings or deficit: With respect to a foreign FCM's ROC branches, earnings not yet repatriated to the head office or deficit not yet offset. Any special reserve appropriated under applicable laws and regulations shall be noted.
3. Other equity: With respect to a foreign FCM, the accumulated balances of unrealized gains and losses from financial assets measured at fair value through other comprehensive income, of gains and losses on hedging instruments, and of revaluation surplus.
A foreign FCM may elect to recognize the remeasurements of defined benefit plans in retained earnings or other equity interest, and disclose the recognition in the notes. Remeasurements of defined benefit plans that have been recognized in other equity interest may not be reclassified into profit or loss or transferred into retained earnings in a subsequent period.