Version 20 - August 2025 (CUD release)

Financial Period Type: 12-Months (Annual)
Target Industry Type: Manufacturing, Services, and Generic (excluding Financial Services)

Legislative updates

Interpretation No.18 (Note 1)
Sustainability Disclosure Standards for Business Enterprises – Basic Standards (Provisional) (Note 2)
Notice on Further Implementing the New Insurance Contract Accounting Standards (Note 3)

Related Accounting Standards:
Accounting Standard for Business Enterprises No.25- Insurance Contracts (Cai Kuai [2020])
Accounting Standard for Business Enterprises No.3- Investment Properties (Cai Kuai [2006] No.3)
When enterprise adopts the Accounting Standard for Business Enterprises No.25- Insurance Contracts (Cai Kuai [2020]), for investment properties that held as underlying items under the variable fee method in compliance with Accounting Standard for Business Enterprises No.3- Investment Properties (Cai Kuai [2006] No.3, the enterprise can selected to adopt the fair value model or the cost model for subsequent measurement, but it is not allowed to adopt two measurement models for this part of investment properties at the same time.
Investment properties held as underlying items under the variable fee method that have been subsequently measured using the fair value model shall not be converted to the cost model, and the enterprise shall measure all investment properties held as underlying items under the variable fee method using the fair value model.
Effective for annual periods beginning on or after 1 January 2025. If an investment property held as underlying items under the variable fee method is changed from a cost model to a fair value model, it shall treat as accounting policies changes. Where an enterprise makes the above adjustments, it shall disclose the relevant information in the notes to the financial statements.
Early adoption is permitted.

Related Accounting Standards:
Accounting Standards for Business Enterprises No. 13- Contingencies (Cai Kuai [2006] No. 3).
For the assurance-type quality assurance that is not an individual performance obligation, the enterprise shall record the journal as, debiting the cost accounts, crediting the provisions account and shall reflect the relevant amount accordingly in the financial statements.
Effective for annual periods beginning on or after 1 January 2025. When implementing this Interpretation for the first time, the enterprise shall treat as changes in accounting policies. Where an enterprise makes the above adjustments, it shall disclose the relevant information in the notes to the financial statements.
Early adoption is permitted.

The standards set out the core content requirements for a complete set of sustainability-related financial disclosures and requires an entity to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects. The effect on the entity’s prospects refers to the effect on the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term.
In order to help the main users of general-purpose financial reports make decisions related to the provision of resources to entities, the core content of the standards include four aspects: governance, strategy, risk management, indicators and objectives:
the governance processes, controls and procedures the entity uses to monitor, manage and oversee sustainability-related risks and opportunities;
the entity’s strategy for managing sustainability-related risks and opportunities;
the processes the entity uses to identify, assess, priorities and monitor sustainability-related risks and opportunities; and
the entity’s performance in relation to sustainability-related risks and opportunities, including progress towards any targets the entity has set or is required to meet by law or regulation.
Early adoption is permitted.

The standards set out a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements).
The Notice mainly makes simplified provisions in the following four aspects:
One is to simplify the evaluation of the profit and loss situation of insurance contracts, the recognition of cash flow assets obtained by insurance, the judgment of the recognition time point of reinsurance contract groups with proportional liability, and the accounting treatment of insurance contracts that need to be terminated due to hesitant withdrawal in the same accounting year after initial recognition.
Secondly, in terms of insurance contract measurement, simplified provisions are made for the measurement of policy pledged loans, accumulated interest, matured receivables or payables to policyholders, non-financial risk adjustments, options, and guaranteed benefits, the measurement of cash flows from reinsurance contract performance and contract service margins, the application conditions of the premium allocation method and the measurement of foreign currency cash flows from insurance contracts under the premium allocation method, the recognition of losses amortized from reinsurance contracts, and adjustments to accounting estimates made in period financial statements.
Thirdly, in terms of insurance contract reporting, simplified disclosure provisions are made for the balance adjustment table of current reinsurance amortized unexpired liability assets and reinsurance amortized claims assets, the adjustment table of performance cash flows and contract service marginal balance of reinsurance contracts, the adjustment of cumulative amounts of relevant financial assets measured at fair value with changes recognized in other comprehensive income recognized in other comprehensive income, and the amount that policyholders can request repayment at any time.
Fourthly, in terms of connection regulations, simplified provisions are made for the presentation of comparative information when implementing the new insurance contract accounting standards for the first time, the application of simplified connection processing methods under the modified retrospective adjustment method, and the determination of transition dates.
Effective on January 1, 2026. Early adoption is permitted. Insurance companies that have already implemented the new accounting standards for insurance contracts in advance before the implementation of this notice shall report in written format to the Accounting Department of the Ministry of Finance and the Institutional Supervision Department of the State Administration of Financial Regulation on the situation of early implementation before June 30, 2025.

Early adoption availability

Optional content changes