Regulations Governing the Preparation of Financial Reports by Insurance Enterprises｜第 15 條｜保險｜Regulation｜In Force
第 二 章/第 五 節｜金融監督管理委員會｜v1.0
Effective Date: 2026-01-01｜Last Amended: 2026-02-05
To meet the objective of presenting full and complete information about the financial position, financial performance, and cash flows of an insurance enterprise, financial reports shall contain explanatory notes disclosing the following: 1.Company history and scope of business operations. 2.A statement undertaking that the preparation of financial report complies with these Regulations, applicable laws and regulations (the titles of the laws or regulations), as well as IFRS, IAS, IFRIC Interpretations, and SIC Interpretations. 3.The date on which the financial report was authorized for issue and the process involved in authorizing the financial report for issue. 4.The effect or impact that may arise when it has or has not applied a new or revised IFRS, IAS, IFRIC Interpretation, or SIC Interpretation endorsed by the FSC. 5.A summary of significant accounting policies used that are relevant to an understanding of the financial report, and the measurement basis (or bases) used in preparing the financial report. 6.Significant accounting judgments, estimations, and assumptions, as well as information about the assumptions it makes and other major sources of estimation uncertainty. 7.Objectives, policies and processes for managing capital, and any change in capital structure, including funding, liability, and equity. 8.If for a special reason there is a change in accounting treatment, thus affecting the comparison of financial data between two successive periods, the reason for the change and its effect on the financial report shall be noted. 9.The following information shall be disclosed for the issuance of insurance contracts that meet the definition set out in IFRS 17: (1)The amounts recognized in the financial statements for contracts within the scope of IFRS 17 prescribed in paragraph 93 (a), the significant judgments, and changes in those judgments, made when applying IFRS 17 prescribed in paragraph 93 (b) of IFRS 17, and the nature and extent of the risks from contracts within the scope of IFRS 17 prescribed in paragraph 93 (c) of IFRS 17, including but not limited to the following items: A. Reconciliations from the opening to the closing balances separately for each of liabilities (or assets) for remaining coverage, liabilities for incurred claims, and any loss component. B. An insurance enterprise shall disclose when it expects to recognize the contractual service margin remaining at the end of the reporting period in profit or loss, quantitatively, in appropriate time bands. Such information shall be provided separately for insurance contracts issued and reinsurance contracts held. C. An insurance enterprise shall disclose the requirements for the inputs, assumptions, and estimation techniques used for significant judgments and changes in judgments made. (2)Other information required for disclosure in accordance with IFRS 17. 10. If it is necessary to provide the basis of valuation for any amount, financial instrument, or other items presented in the financial report, that basis of valuation shall be noted. 11. If any item presented in the financial report is subject to any legal, regulatory, contractual, or other restriction, the circumstances and timing of the restriction and other related information shall be noted. 12. Material contingent liabilities and unrecognized contractual commitments. 13. Financial risk management objectives and policies. 14. Borrowing to meet cash flow needs arising from payment of major benefits. 15. The addition, construction, idling or sale of major operating assets and investment assets. 16. Significant transactions with related parties. 17. Losses due to material disasters. 18. Material litigation pending or concluded. 19. The signing, completion, voidance, or lapse of material contracts. 20. Information on financial instruments. The information shall be disclosed in accordance with IFRS 7, including the significance of financial instruments for an entity's financial position and performance, qualitative and quantitative information on risk exposure for each type of financial instrument, and if overlay approach is selected, relevant information required of disclosure in accordance with IFRS 4. 21. Relevant information about leases. The information shall be disclosed in accordance with IFRS 16, including disclosure of information that gives a basis for the primary of the financial reports to assess the effect that the leases have on the financial position, financial performance, and cash flows of the Insurance Enterprise, and relevant qualitative and quantitative information about its leasing activities. 22. Information about employee benefits. The information shall be disclosed in accordance with IAS 19, and shall include the influence of defined benefit plans on the amount, timing, certainty of future cash flows, actuarial losses arising from changes in demographic assumptions and financial assumptions, and the expected contributions in the next reporting period in the following financial year. 23. An insurance enterprise that offers investment-linked insurance plans shall disclose, separately for insurance contracts that comply with and those that do not comply with the definition set out in IFRS 17, in the notes the statement of reconciliation for assets on insurance products in separate accounts (Form 6 - 36), including the increase and decrease of assets, related expenses, and investment gain or loss. 24. An insurance enterprise that operates non-life insurance shall disclose the amount of respectively the retained gross earned premium from compulsory and non-compulsory insurance and present the calculation process. 25. An insurance enterprise that operates non-life insurance shall disclose the amount of respectively the retained claims for compulsory and non-compulsory insurance and present the calculation process. 26. An insurance enterprise that operates non-life insurances hall disclose the insurance retention limit per risk unit by type of insurance. 27. An insurance enterprise that operates compulsory auto liability insurance shall disclose in the Notes information on its assets, liabilities, income and costs in tabulated format (Forms A ~ B). 28. Investment items and limits under discretionary management of a securities investment trust enterprise or securities investment consulting enterprise. 29. Operating segment information. The information shall be disclosed in accordance with IFRS 8. 30. Information on discontinued operations. 31. Major operations, assets and liabilities assigned to or assumed from other enterprises. 32. When the insurance enterprise is a subsidiary of a financial holding company, manner of revenue, cost, expense and profit (loss) sharing between the insurance enterprise and the financial holding company and other subsidiaries in terms of business or trading activities, joint business promotions, sharing of information, and sharing of facilities or premises. 33. Information on investment in the Mainland Area. 34. In the case of private placement of securities, the type, issue date, and amount shall be disclosed. 35. Information about investments in derivative instruments. 36.Information for which disclosure is required by law. 37. When subsidiaries hold shares in the parent, the names of the subsidiaries and the shareholdings, amounts, and reasons shall be separately presented. 38. Material organizational adjustments and material management reforms. 39. Material effects of changes in government laws and regulations. 40.Description of important accounting policy for foreign exchange valuation reserve mechanism, hedging strategy and risk exposures, he effect on profit (loss), liabilities and equity by not applying this reserve mechanism and calculated earnings per share without applying this reserve mechanism. 41. Fair value information. The information shall be disclosed in accordance with IFRS13, and shall include information on recurring or non-recurring fair value measurement of assets and liabilities, inputs such as fair value valuation technique and parameters or assumptions used in fair value measurement, and Level 3 of fair value hierarchy. 42. Foreign-currency-denominated assets and liabilities that have significant influence, including the amount of risk exposure, currency, and exchange rate for monetary and non-monetary items denominated in foreign currencies. 43. The net worth ratio which means equity divided by total assets excluding separate accounts for investment-linked insurance. 44. Supporting information for items presented in the balance sheet and in the statements of comprehensive income, of changes in equity and of cash flows, including material information that could affect the insurance enterprise’s future cash flows, or other necessary descriptions essential for avoiding misunderstanding by the primary users or for the fair presentation of the financial reports.