In accordance with the "Basic Standards for Enterprise Accounting," the Ministry of Finance issued the revised Enterprise Accounting Standard No. 30 — Presentation of Financial Statements on 2014/1/27, effective as of 2014/7/1.
1. Overview of Guidelines
This standard governs the presentation and disclosure of financial statements, applying to entities when presenting and disclosing financial statement information in their external financial reports. Financial statements provide a structured representation of an entity's financial position, performance, and cash flows.
Components of Financial Statements
- • Balance Sheet
- • Income Statement
- • Cash Flow Statement
- • Statement of Changes in Equity
- • Note
II. Basic Requirements for Presentation
Going Concern
An enterprise shall prepare financial statements on the basis of going concern, recognizing and measuring transactions and events that have actually occurred in accordance with the requirements of accounting standards for business enterprises.
Consistency of Presentation
Financial statement items shall be presented consistently across accounting periods and shall not be changed arbitrarily, unless required by accounting standards or when a change would provide more reliable and relevant information.
Importance
Items with different nature or function shall be presented separately in the financial statements, unless they are not material. Items with similar nature or function may be aggregated.
III. Presentation of the Balance Sheet
Assets and liabilities in the balance sheet shall be presented separately as current and non-current assets, and current and non-current liabilities, based on liquidity.
Special Presentation Requirements
- • Deferred tax assets and deferred tax liabilities shall be presented separately as non-current assets and non-current liabilities, respectively.
- • Assets and liabilities generated by a cash-generating unit or group of units shall be presented in accordance with applicable regulations.
- Assets and liabilities held for sale or classified as disposal groups shall be presented separately.
IV. Presentation of the Income Statement
The income statement shall reflect an enterprise's operating results for a specific accounting period. In accordance with the principle of materiality, the enterprise shall present separately in the income statement items that are material.
Comprehensive Income
The statement of comprehensive income shall separately present the net amounts, after deducting income tax effects, for each item of other comprehensive income, as well as total comprehensive income. Other comprehensive income is divided into items that will be reclassified to profit or loss when specified conditions are met in future accounting periods and items that will not be reclassified to profit or loss.
5. Notes to the Financial Statements
Notes provide textual descriptions or detailed breakdowns of items presented in financial statements such as the balance sheet, income statement, cash flow statement, and statement of changes in equity. They also explain items not included in these statements.
Notes to the financial statements: required disclosures
- • Company overview and basis for financial statement preparation
- • Statement of Compliance with Accounting Standards for Business Enterprises
- • Significant Accounting Policies and Estimates
- • Explanation of Key Report Items
- • Contingent items, events after the reporting period, and related party relationships and transactions
Regulatory Document Attachment
Accounting Standards for Business Enterprises No. 30 — Presentation of Financial Statements (PDF)