Page 90 - 國合會2016電子書-西文

Apendice

Cash and cash equivalents include cash on hand and in banks, and other short-term highly liquid investments.
A. Cash equivalents are readily convertible to a fixed amount of cash.
B. Cash equivalents are subject to insignificant risk of changes in value resulting from fluctuations in interest rates.
Taiwan ICDF cash management are included within cash and cash equivalents in the statement of cash flows.
5) Allowance for Uncollectible Accounts
The provision of reserve for bad debts is made based on their risk levels in accordance with the Regulation for
Taiwan ICDF Dealings with Past Due/Non-Performing Loans and Bad Debts.
6) Financial Assets and Financial Liabilities at Fair Value through Profit or Loss
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) Available-for-Sale Financial Assets
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 available-for-sale financial assets is the fair value plus increasing price.
B. Available-for-sale financial assets are evaluated by fair value. Moreover, value changes are recognized into the
adjusted net value. The accumulated gain or loss is recognized in net income or loss when the financial assets
are sold. Index stock fund is evaluated by fair value based on the closing prices at the balance sheet date.
C. If there is objective evidence of impairment, the accumulated loss previously recognized in net value is
reclassified to profit or loss. If the fair value of equity instrument subsequently increases, the impairment loss is
reversed to net value.
8) Held-to-maturity Financial Assets
A. Held-to-maturity financial assets are recorded using settlement date accounting and are stated initially at its fair
value plus transaction costs that are directly attributable to the acquisition of the financial asset.
B. Held-to-maturity financial assets 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
Fixed assets are stated at cost. Major improvements and renewals are capitalized and depreciated accordingly.
Maintenance and repairs are expensed as incurred.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.
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.

12) Impairment of Non-financial Assets

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