Page 91 - 國合會2016電子書-西文

Apendice

Taiwan ICDF 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. Taiwan ICDF had a non-contributory pension plan originally, covering all regular employees, which was defined
by the Fund. Taiwan ICDF 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, Taiwan ICDF has established a funded defined contribution
pension plan (the “New Plan”) under the Labor Pension Act. Under the New Plan, Taiwan ICDF 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 further contributions
are made to Taiwan ICDF’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
promulgated by the Executive Yuan, and Statement of Financial Accounting Standards. 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
Taiwan ICDF issues guarantees for private enterprises to secure loans in compliance with the Regulation for
Taiwan ICDF in Providing Guarantee for Credit Facilities Extended to Private Enterprises which invest in Countries
with Formal Diplomatic Relationships promulgated by the MOFA. The reserve is accrued in accordance with the
Regulation for Taiwan ICDF Dealings with Past-Due/Non-Performing Loans and Bad Debts.
16) Revenues, Costs 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 Statement of Financial Accounting Standards 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
Taiwan ICDF 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
None.

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