2017-02-23 17:20:23

1. Fixed assets which have not reached their service years but have been scrapped and derecognized are mistakenly recognized as “temporary differences” and are deferred to be depreciated in a later year and when they reach their service years, the undepreciated value is further accounted as loss for that year. However, fixed assets which are scrapped or destroyed before the service year calculated in accordance with the Table of Service Life of Fixed Assets should be recognized as loss or profit in accordance with Article 95-10 of Regulations Governing Assessment of Profit-seeking Enterprise Income Tax, instead of deferred. 2. Publicly quoted entities should adjust its pension payable and calculate accrued pension liabilities according to International Financial Reporting Standards (IFRS) and declare payroll expenses. If pension is not actually set aside, which is not in accord with the regulations prescribed in Article 33-1 of the Income Tax Act, it shall not be included in payroll expenses. 3. If a branded apparel retail business does not declare the sales income of an overseas area, it cannot declare payroll expenses of employees assigned to the long-term overseas posting and overseas rent expenses of that area. 4. The special reserve set aside for “Net Loss Not Recognized as Pension Cost,” “Unrealized Revaluation Increment,” “Unrealized Gains/ (Losses) on Financial Instruments”, etc. is not in accordance with method stated the official document numbered 0950000507 published by the Financial Supervisory Commission on January 27th, 2006. Therefore, such special reserve should not be recognized as deductions of Undistributed Surplus Earnings.