| Legislative： |
Financial-Supervisory-Securities-Corporate-1110384722 |
| Content： |
Order of the Financial Supervisory Commission
Issue date: 4 November 2022
Issue no.: Financial-Supervisory-Securities-Corporate-1110384722
1. This Order is issued pursuant to Article 41, paragraph 1 of the Securities and Exchange Act.
2. If an equity-method insurance company investee of a public company reclassifies its financial assets carried at fair value through other comprehensive income or loss to financial assets at amortized cost in accordance with IFRS 9, and a special reserve is
required to be allocated in accordance with the 4 November 2022 Order No. Financial-Supervisory-Insurance-Finance-11104942741 of the Financial Supervisory Commission, the public company, when distributing distributable earnings, shall provide the special reserve
in proportion to the change in fair value of its equity-method shareholding in the reclassified financial assets of the insurance investee.
3. If there is a reversal of the change in fair value of the reclassified financial assets of the public company's equity-method insurance investee, the public company may, in proportion to its equity-method shareholding in the reversed portion, reverse the
special reserve and distribute earnings.
4. The public company shall disclose the changes in the fair value of financial assets reclassified by the insurance investee and the corresponding allocated special reserve in the notes to the annual financial report.
5. This Order is effective from this day forward. |