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promulgated by the Executive Yuan, and ROC Statement of Financial Accounting Standards No. 22 (“Accounting for
Income Taxes”). Under- or over-provision of income tax in the previous year is accounted for as an adjustment of
income tax expense in the current year.
15) Reserve for Contingencies of Guarantee Loss
The TaiwanICDF issues guarantees for private enterprises to secure loans in compliance with the Regulation for the
TaiwanICDF in Providing Guarantee for Credit Facilities Extended to Private Enterprises Which Invest in Countries with
Formal Diplomatic Relationships promulgated by MOFA. The reserve is accrued in accordance with the Regulation for
the TaiwanICDF Dealings with Past-Due/Non-Performing Loans and Bad Debts.
16) Revenues and Expenses
Revenues (including government donations) are recognized when the earning process is substantially completed and
is realized or realizable. Costs and expenses are recognized as incurred.
17) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts of assets and liabilities and the disclosures
of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses
during the reporting period. Actual results could differ from those assumptions and estimates.
18) Settlement Date Accounting
The TaiwanICDF adopted settlement date accounting for the financial assets. For financial asset or financial liability
classified as at fair value through profit or loss, the change in fair value is recognized in profit or loss.
3. CHANGES IN ACCOUNTING PRINCIPLES
Receivables
On January 1, 2011, the TaiwanICDF adopted the renewed Financial Accounting Reporting Standard No. 34 of R.O.C.,
“Financial Instruments: Recognition and Measurement”. If the impairment would be approved by objective evidence, the
receivables and claim would be recognized as impairment loss. This change in accounting principle will not affect our
financial report of 2011.
4. CASH AND CASH EQUIVALENTS
December 31, 2012
December 31, 2011
Petty cash
$110,000
$110,000
Demand deposits
287,487,458
158,915,101
Checking deposits
302,909
1,543,465
Time deposits
6,883,049,824
6,573,925,236
Cash equivalents
- Bonds purchased under resale agreements
50,000,000
180,000,000
Total
$7,220,950,191
$6,914,493,802
5. HELD-TO-MATURITY FINANCIAL ASSETS
December 31, 2012
December 31, 2011
Current items
Corporate bonds
$686,960,370
$200,034,151
Government bonds
–
206,921,232
$686,960,370
$406,955,383
Non-current items
Corporate bonds
$1,602,639,324
$2,086,354,374
Government bonds
–
–
$
1,602,639,324
$2,086,354,374
6. OTHER RECEIVABLES
December 31, 2012
December 31, 2011
Interest receivable
$105,678,884
$96,004,023
Retained money receivable on completed projects
43,289,622
29,809,443
Other recievables
15,556,316
16,854,724
Total
164,524,822
142,668,190
Less: Allowance for doubtful accounts
(812,117)
(930,568)
Net
$163,712,705
$141,737,622
