In accordance with the "Basic Standards for Accounting of Enterprises," the Ministry of Finance issued Enterprise Accounting Standard No. 10 — Enterprise Annuity Funds on 2006/3/9, effective as of 2007/1/1.
1. Overview of Guidelines
A corporate annuity fund is a supplementary pension fund formed by contributions under a legally established corporate annuity plan and the investment returns generated from its operations.
Basic Principles
- • Enterprise annuity funds shall be recognized, measured, and presented as independent accounting entities.
- • Entrustors, trustees, custodians, account administrators, and investment managers must strictly separate enterprise annuity funds from their own assets and other assets.
- • Ensure the safety of enterprise annuity funds
II. Recognition and Measurement
Enterprise annuity funds shall be recognized and measured separately for assets, liabilities, income, expenses, and net assets.
Asset Class
- • Cash and cash equivalents
- • Receivables from securities clearing and interest receivables
- • Reverse repurchase securities, other receivables
- • Bond investing, fund investing, stock investing
- • Other Investments
Investment Scope
Financial products acquired in the operation of enterprise annuity funds within the investment scope prescribed by national regulations shall be measured at fair value:
- • Government Bonds
- • Financial and corporate bonds with credit ratings above investment grade
- Convertible Bond
- • Investment-linked insurance products
- • Securities Investment Funds
- • Financial products with high liquidity, such as stocks
III. Revenue and Expenses
Income Items
- • Interest income on deposits
- • Income from securities sold under repurchase agreements
- • Gain from changes in fair value
- • Investment disposal gains
- • Other Income
Expense Items
- • Transaction Fees
- Trustee Management Fee
- • Custodian Management Fee
- • Investment Manager Fee
- • Proceeds from sale and repurchase of securities
- • Other Fees
IV. Presentation of Financial Statements
The financial statements of an enterprise annuity fund include the balance sheet, statement of changes in net assets, and notes.
Balance Sheet
Reflects the financial position of the enterprise annuity fund as of a specific date, presented by category: assets, liabilities, and net assets.
Statement of Changes in Equity
Reflects the changes in net assets of a corporate annuity fund during an accounting period.
Regulatory Document Attachment
Accounting Standards for Business Enterprises No. 10 — Enterprise Annuity Funds (PDF)