Due to "International Standard" consensus of Economic Development Commission, the accounting standards in Taiwan have moved towards IFRS (International Financial Reporting Standards).
The Financial Supervisory Commission in Taiwan announced on May 14, 2009, that the full IFRS time-table is adopted. From the year 2013, cabinets, cabinet company listed and most of the financial industry will be preparing financial statements in accordance with the IFRS. And it will also be applied to a public offering company in 2015.
Benefits of IFRS
For investors: improve the transparency and comparability of information, which will lead to more investment.
For the enterprise: reduce the related financing costs, increase domestic and international comparability of financial reporting among enterprises.
For the enterprise: reduce the related financing costs, increase domestic and international comparability of financial reporting among enterprises.
IFRS primarily affects:
1. The functional currency
2. The expression of financial statement
3. The consolidated and individual financial statements
4. The information of operation department
5. The adoption of international financial reporting standards for the first time
6. Income recognition
7. Intangible assets
8. Evaluation of property, plant and equipment assets
2. The expression of financial statement
3. The consolidated and individual financial statements
4. The information of operation department
5. The adoption of international financial reporting standards for the first time
6. Income recognition
7. Intangible assets
8. Evaluation of property, plant and equipment assets
Things PSI at this stage should pay more attention to are as follows:
Expression of financial statements:
Including statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes. And at least two notes should be presented to the financial statements, other reports and related;
In addition, the statement of cash flows requires a separate expression of interest and dividends, income and pay income tax.
Consolidated and separate financial statements:
1st & 3rd quarter, semi-annual report, annual reports required for consolidated financial statements, annual reports for long reports.
Income recognition may change with the following items of IFRS:
In drawing up sales contracts, there are warranty terms, which makes part of their income from sales of products identified as maintenance service income. And therefore prior to the rendering of services, that part of the income must be deferred recognition.
Effect of IFRS on information systems:
Currently PSI has implemented DSC TIPTOP ERP system. In the fields of currency evaluation, multiple coin conversion, multi trade operation practice, fixed assets depreciation meter mention, assessed cost, quickly completed merged report, internal control, sales module strengthened income finds rationality, stock evaluation meeting financial report and management decision-making of double target needs, and costs calculation analysis, it is more flexible than the old system, and it meets the requirement of IFRS.
We believe that in collaboration with the parent company and all the staff, in the near future we will meet the requirements of IFRS. And at the time of monthly billing, we can immediately provide the statement of financial position of the Enterprise Group, and make good use of the statement of comprehensive income as the basis to make management decisions, moving towards the goals of becoming a publicly traded company.
