Regulations Governing the Preparation of Financial Reports by Insurance Enterprises｜第 10 條｜保險｜Regulation｜In Force
第 二 章/第 一 節｜金融監督管理委員會｜v1.0
Effective Date: 2026-01-01｜Last Amended: 2026-02-05
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.