To enhance the relevance of financial report information disclosure and simplify the disclosure of financial report notes after considering suggestions from external stakeholders, the Financial Supervisory Commission (hereinafter referred to as the FSC) has amended the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”. As the consultation process of the draft amendments has been completed, the amended Regulations will be released and implemented soon, and the key points of the amendments are as follows:
1.     Deletion of part of the notes to the financial report: Given that for the notes to the financial report, the current Regulations Governing the Acquisition and Disposal of Assets by Public Companies and paragraph 1, Article 43-1 of the Securities Exchange Act already contain regulations for public announcement and declaration related information about some major trading matters to be disclosed, including the company’s trading of securities, acquisition or disposal of real estate, trading in derivative instruments, as well as major shareholders information, and such information can be readily obtained on the Market Observation Post System, the disclosure provisions for such matters together with the relevant notes are deleted.
2.     Enhancement of the decision-making usefulness of information disclosure: To provide investors with useful decision-making information, the current requirement on the disclosure of individual securities holding at the end of the period is amended to the disclosure of securities holding in accordance with the materiality principle, with the relevant notes amended accordingly.
      The FSC stated that the amendments are mainly aimed at simplifying the disclosure of information in the financial report’s notes, which help investors focus on information relevant to decision-making, improve the usefulness of information disclosure, and reduce the burden of financial report preparation by companies. The amendments will apply when listed companies filing the financial reports for the first quarter of 2025.

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