Appendix
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A. Investments in equity instruments are accounted for using trade date accounting. Investments in debt instruments
are accounted for using settlement date accounting, and are measured initially at the fair value of the debt
instruments.
B. Listed stocks and exchange traded funds are measured at their fair value, and the changes in the fair value are
included in profit or loss. The fair value of the listed stocks and exchange traded funds is their closing price at the
balance sheet date.
7) Financial Assets in Available-for-Sale
A. Investments in equity instruments are accounted for using trade date accounting. Investments in debt instruments
are accounted for using settlement date accounting, and are measured initially at the fair value of the debt
instruments. Market value of financial assets in available-for-sale is the fair value plus increasing price.
B. Financial assets in available-for-sale are evaluated by fair value. Moreover, value changes being listed into the
adjusted net value and financial instruments’ accumulated gain or loss being erased; financial instruments will be
classified into net income or loss. Index stock fund is evaluated by fair value of the balance sheet closing price.
C. If there is the objective evidence of impairment, financial assets in available-for-sale will be recognized as
impairment loss. If Investments in equity instruments’ impairment decreased in amount, it will be recognized in
adjusted net value.
8) Held-to-maturity Financial Assets
A. Financial assets carried at cost is recorded using settlement date accounting and is stated initially at its fair value
plus transaction costs that are directly attributable to the acquisition of the financial asset.
B. Financial assets carried at cost are recorded at amortized cost.
C. If there is any objective evidence that the financial asset is impaired, the impairment loss is recognized in profit or
loss. If the fair value of the financial asset subsequently increases and the increase can be objectively related to an
event occurring after the impairment loss was recognized in profit or loss, the impairment loss shall be reversed
to the extent of the loss previously recognized in profit or loss.
9) Financial Assets Carried at Cost
Financial assets carried at cost are recorded at cost. If there is any objective evidence that the financial asset is
impaired, the impairment loss is recognized in profit or loss and is no longer recoverable.
10) Long-term Loans Receivable
Foreign currency loans are stated at historical exchange rates.
11) Fixed Assets
A. Fixed assets are stated at cost. Depreciation is provided under the straight-line method based on the assets’
estimated economic service lives. The service lives of the major fixed assets are 3 to 10 years. When assets are
disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss
is credited or charged to income.
B. Major improvements and renewals are capitalized and depreciated accordingly. Maintenance and repairs are
expensed as incurred.
12) Impairment of Non-financial Assets
The TaiwanICDF recognizes impairment loss when there is indication that the recoverable amount of an asset is less
than its book value. The recoverable amount is the higher of the fair value less costs to sell and value in use. The
fair value less costs to sell is the amount obtainable from the sale of the asset in an arm’s length transaction after
deducting any direct incremental disposal costs. The value in use is the present value of estimated future cash flows
to be derived from continuing use of the asset and from its disposal at the end of its useful life. When the impairment
no longer exists, the impairment loss recognized in prior years may be recovered.
13) Retirement Plan
A. The TaiwanICDF had a non-contributory pension plan originally, covering all regular employees, which was defined
by the Fund. The TaiwanICDF contributed monthly an amount based on 7% of the employees’ monthly salaries
and wages to the retirement fund deposited with a financial institution. This fund balance was not reflected in the
financial statements. Effective September 1, 2009, the TaiwanICDF has established a funded defined contribution
pension plan (the “New Plan”) under the Labor Pension Act. Under the New Plan, the TaiwanICDF contributes
monthly an amount based on 7% of the payroll grades corresponding to the employees’ monthly salaries and
wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. No more contributions are
made to the TaiwanICDF’s retirement fund.
B. Under the defined contribution pension plan, net periodic pension costs are recognized as incurred.
14) Income Tax
Income tax is accounted in accordance with the Standard for Non-profit Organizations Exempt from Income Tax
