Regulations Governing the Preparation of Financial Reports by Futures Clearing Houses｜第 11 條｜證券暨期貨管理｜Regulation｜In Force
第 二 章/第 一 節｜金融監督管理委員會｜v1.0
Last Amended: 2018-07-27
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 statements or disclosed in the notes. Current assets means that the futures clearing house expects to realize the asset, or intends to sell or consume it, in its normal operating cycle, or that it holds the asset primarily for the purpose of trading, or 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 subject to an insignificant risk of changes in value. B.A futures clearing house 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 at fair value through profit or loss –current: A.Financial assets not measured at amortized cost or measured at fair value through other comprehensive income. B.Financial assets measured at amortized cost or measured 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. 3.Financial assets measured at fair value through other comprehensive income - current: A.Debt instrument investments that meets all of the following conditions: a.The futures clearing house 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 entity has irrevocably elected at initial recognition to present changes in fair value in "other comprehensive income," and may not be re-recorded after being recognized. C.The futures clearing house shall establish evaluation and assessment working procedures and collect reasonable supporting evidentiary information of its business model, contractual cash flows, and equity investments not held for trading, and the related control measures shall be incorporated into its accounting system. 4.Financial assets measured at amortized cost – current, meaning all of the following conditions are met: A.The futures clearing house holds the financial assets within a business model whose objective is to hold the financial asset to collect the contractual cash flows. 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 futures clearing house 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 futures clearing house shall record these financial assets under the category of derivative instrument, non-derivative financial assets measured at fair values and not at fair values. 6.Trade receivables: Means the entity 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 in accordance with IFRS 9. C.Trade receivables from related parties in significant amounts shall be presented separately. D.The futures clearing house shall disclose an aged analysis of trade receivables. 7.Other receivables refers to receivables other than trade receivables. 8.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. 9.Prepayments: All prepayments and prepaid expenses. 10.Clearing margins: A.Clearing margins collected from futures clearing members in accordance with the Act. B.A note shall be added stating whether the collateral deposited for clearing margins is cash or FSC-approved securities. 11.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 no longer 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. 12.Other current assets: Current assets not attributable to any of the classes above. Non-current assets refers to tangible, intangible, and financial assets of a long-term nature, other than assets classified as current. At a minimum, non-current assets shall include each of 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 futures clearing house, 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 futures clearing house'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 futures clearing house. If a CPA determines, pursuant to Statement of Auditing Standards No. 51, that an associate has a material effect on the fair presentation of the financial reports of an futures clearing house, the financial reports 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 generally accepted auditing standards. 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 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 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.Identifiable, non-monetary assets without physical substance that meet the definition of identifiability, control by an entity, 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. 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.The compensation reserve fund: A.This refers to the compensation reserves set aside as a lump sum, and then as 20 percent of revenues from clearing and settlement fees received during each quarter, in accordance with the Act and the Regulations Governing Futures Clearing Houses. B.The compensation reserve fund shall be deposited in a segregated account at a bank designated by the FSC. 8.Settlement and clearing debit items: A.This refers to settlement and clearing funds collected from futures clearing members and the interest revenue and relevant fees arising from these funds. B.In preparing the balance sheet, settlement and clearing debit items shall be presented as a net balance after offsetting against settlement and clearing credit items, provided that their nature, content, utilization, and pledge status shall be indicated in the notes to the financial reports and the details shall be disclosed in the statements of related accounting items. 9.Other non-current assets: Non-current assets not attributable to any of the classes above. The accounting and the recognition and measurement of allowance for losses 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 profit or loss, financial assets measured at amortized cost, , financial assets for hedging, trade receivables, and other receivables shall be in accordance with IFRS 9. The allowance for losses shall be classified as subtraction from financial assets measured at amortized cost, futures trading margins receivable, deduction from receivable and other receivables. Where the listed items are more specifically classified, the allowance for losses shall be shown separately accordingly. A futures clearing house 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 available-for-sale financial assets, financial assets measured at cost, debt instrument investment for which no active market exists, held-to-maturity financial assets, futures trading margins receivable, trade receivables, other receivables, 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 profit or loss, financial assets measured at amortized cost, financial assets for hedging, 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 profit or loss, financial assets measured at amortized cost, financial assets for hedging, shall be distinguished as current and non-current based on liquidity.