National Cultural Affairs Foundations Accounting Standards and Financial Reporting Standards
2025-02-20
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Chapter 1 General Provisions
Article 1
Articles 1 The Standards are established in accordance with Articles 24, Paragraph 4 and Article 25, Paragraph 5 of the Foundations Act (hereinafter referred to as the Act).
Article 2
The formulation of accounting standards and financial reports of national cultural affairs foundations (hereinafter referred to as cultural foundations) under the jurisdiction of the Ministry of Culture (hereinafter referred to as the Ministry) shall be processed in accordance with the Standards and related regulations; items not provided herein shall be processed in accordance with generally accepted accounting principles.
The generally accepted accounting principles in the preceding paragraph shall be based on the Enterprise Accounting Standards and their interpretations. Cultural foundations may also adopt International Financial Reporting Standards, International Accounting Standards, Interpretations, and Standing Interpretations Committee (SIC) Interpretations.
The generally accepted accounting principles in the preceding paragraph shall be based on the Enterprise Accounting Standards and their interpretations. Cultural foundations may also adopt International Financial Reporting Standards, International Accounting Standards, Interpretations, and Standing Interpretations Committee (SIC) Interpretations.
Article 3
Cultural foundations shall appoint accounting personnel to implement accounting procedures. Where a cultural foundation has insufficient personnel, related personnel may serve concurrently in these capacities.
Cultural foundations may appoint an accountant or a person qualified by law for handling accounting affairs to process the accounting procedures in the preceding paragraph.
Accounting personnel of cultural foundations shall process accounting affairs and formulate accounting reports in accordance with the Standards. In the event of release or change of post, the respective job transfer must be implemented.
Cultural foundations may appoint an accountant or a person qualified by law for handling accounting affairs to process the accounting procedures in the preceding paragraph.
Accounting personnel of cultural foundations shall process accounting affairs and formulate accounting reports in accordance with the Standards. In the event of release or change of post, the respective job transfer must be implemented.
Article 4
A cultural foundation shall establish an accounting system in accordance with Paragraph 1, Article 24 of this Act and submit it to the Ministry of Culture for record.
The contents of the accounting system mentioned in the preceding paragraph shall include the following items:
1. General description.
2. Diagram of the bookkeeping organizational structure.
3. Types and formats of accounting vouchers.
4. Types and formats of accounting books.
5. Names, definitions, and codes of accounting subjects (items).
6. Types and formats of accounting reports.
7. Procedures for handling accounting affairs.
8. Procedures for managing assets and financial affairs.
9. Others.
The contents of the accounting system mentioned in the preceding paragraph shall include the following items:
1. General description.
2. Diagram of the bookkeeping organizational structure.
3. Types and formats of accounting vouchers.
4. Types and formats of accounting books.
5. Names, definitions, and codes of accounting subjects (items).
6. Types and formats of accounting reports.
7. Procedures for handling accounting affairs.
8. Procedures for managing assets and financial affairs.
9. Others.
Article 5
The fiscal year of cultural foundations shall be based on the calendar year which begins on January 1 and ends on December 31 each year. The basis of accounting shall be based on an accrual system. The accounting unit shall be NTD and the unit used for financial statements shall be NTD.
Where accounts are listed in foreign currencies due to the nature of the business, the cultural foundation shall convert foreign currencies into NTD for calculation.
Where accounts are listed in foreign currencies due to the nature of the business, the cultural foundation shall convert foreign currencies into NTD for calculation.
Chapter 2 Accounting Vouchers
Article 6
Accounting vouchers can be divided into the two following categories:
1. Source document: The document which proves the course of an event as the basis for the recording document.
2. Recording document: The document which proves the responsibility of accounting officers handling accounting events and which serve as the basis of account keeping.
1. Source document: The document which proves the course of an event as the basis for the recording document.
2. Recording document: The document which proves the responsibility of accounting officers handling accounting events and which serve as the basis of account keeping.
Article 7
Source documents can be divided into the three following categories:
1. External document: Those obtained from persons other than the cultural foundation itself.
2. Outgoing document: Those given to persons other than the cultural foundation itself.
3. Internal documents: Those prepared and kept by the cultural foundation itself.
The external document and outgoing document in the Subparagraph 1 of the preceding paragraph shall be signed or sealed by the issuer and shall include the following items:
1. Name of the document.
2. Date.
3. The name and address or the unified business number of the transacting parties.
4. Contents and amount of the transaction.
The internal document in Paragraph 1, Subparagraph 3 shall be prepared and kept by the cultural foundation according to the fact and amount of the transaction.
1. External document: Those obtained from persons other than the cultural foundation itself.
2. Outgoing document: Those given to persons other than the cultural foundation itself.
3. Internal documents: Those prepared and kept by the cultural foundation itself.
The external document and outgoing document in the Subparagraph 1 of the preceding paragraph shall be signed or sealed by the issuer and shall include the following items:
1. Name of the document.
2. Date.
3. The name and address or the unified business number of the transacting parties.
4. Contents and amount of the transaction.
The internal document in Paragraph 1, Subparagraph 3 shall be prepared and kept by the cultural foundation according to the fact and amount of the transaction.
Article 8
Bookkeeping slips can be divided into the three following categories:
1. Receipt slips.
2. Payment slips.
3. Transfer slips.
The term "transfer slip" referred to in Subparagraph 3 of the preceding paragraph may be classified into cash transfer slip and journal transfer slip. All the slips may be distinguished from one another by color or other means.
1. Receipt slips.
2. Payment slips.
3. Transfer slips.
The term "transfer slip" referred to in Subparagraph 3 of the preceding paragraph may be classified into cash transfer slip and journal transfer slip. All the slips may be distinguished from one another by color or other means.
Article 9
The preparation of a bookkeeping slip shall be based on the source document affixed thereto.
However, for closing adjustments and post-closing transfers, the source documents in the preceding paragraph may be waived.
However, for closing adjustments and post-closing transfers, the source documents in the preceding paragraph may be waived.
Article 10
Where the cultural foundation accounting affairs are simple or where the source documents have met the requirements for account keeping, the source documents may be accepted in lieu of bookkeeping slips.
Article 11
Accounting vouchers should be compiled into books on a daily or monthly basis, and have covers added. These vouchers shall be properly maintained and signed or stamped by the chairperson of the cultural foundation or an authorized representative, as well as by the responsible and processing accounting personnel.
A cultural foundation may, as needed, separately compile and preserve the following types of vouchers, provided that the date and reference number are cross-referenced:
1. Vouchers that serve as evidence of the existence of rights and obligations.
2. Original vouchers that must be permanently preserved or are more conveniently stored when separately bound.
A cultural foundation may, as needed, separately compile and preserve the following types of vouchers, provided that the date and reference number are cross-referenced:
1. Vouchers that serve as evidence of the existence of rights and obligations.
2. Original vouchers that must be permanently preserved or are more conveniently stored when separately bound.
Chapter 3 Account Books
Article 12
Accounting books are categorized into two types below:
1. Chronological books: Records based primarily on the chronological occurrence of accounting events.
2. Classified books: Records based on the classification of accounting items.
1. Chronological books: Records based primarily on the chronological occurrence of accounting events.
2. Classified books: Records based on the classification of accounting items.
Article 13
Journal books consist of the following two categories:
1. General journal books: Journal books recording all events on a chronological basis or concurrently recording the footing of special chronological accounting items on a chronological basis.
2. Special journal books: Journal books recording special events on a chronological basis.
1. General journal books: Journal books recording all events on a chronological basis or concurrently recording the footing of special chronological accounting items on a chronological basis.
2. Special journal books: Journal books recording special events on a chronological basis.
Article 14
Ledgers consist of the following two categories:
1. General ledgers: Ledgers used to record all controlling items.
2. Subsidiary ledgers: Ledgers used to record all subsidiary items of a controlling item.
The general ledger and subsidiary ledgers in the preceding paragraph should be reconciliatory and amounts in related accounts should be consistent.
1. General ledgers: Ledgers used to record all controlling items.
2. Subsidiary ledgers: Ledgers used to record all subsidiary items of a controlling item.
The general ledger and subsidiary ledgers in the preceding paragraph should be reconciliatory and amounts in related accounts should be consistent.
Article 15
Cultural foundations shall establish general journal books and general ledgers. They may also set up special journal books or subsidiary ledgers based on actual requirements.
Article 16
Cultural foundations shall set up a table of books to specify the name, characteristics, first and last dates of usage. They shall be signed or sealed by both the chairperson of the cultural foundation or authorized individual and the in-charge personnel or handling accountant. The table of books shall be appropriately stored.
Article 17
Account books shall be numbered in accordance with the sequence of the accounts and they may not be damaged. An account book should be used continuously for record keeping within the same accounting year and, unless completely exhausted, shall not be replaced by a new book.
When replacing an account book, each blank page of the book shall be stamped "Blank and Invalid" and the words "All of the following pages are blank and invalid" should be added on the first blank page.
When replacing an account book, each blank page of the book shall be stamped "Blank and Invalid" and the words "All of the following pages are blank and invalid" should be added on the first blank page.
Chapter 4 Financial Reporting
Article 18
The elements of accounting are classified into five categories: assets, liabilities, equity, revenues, and expenses.
A cultural foundation shall, based on its operational practices, compile required accounting subjects from aforementioned accounting categories in accordance with the “Reference Table of Common Accounting Subjects for Cultural Foundations” (as attached in Appendix 1).
A cultural foundation shall, based on its operational practices, compile required accounting subjects from aforementioned accounting categories in accordance with the “Reference Table of Common Accounting Subjects for Cultural Foundations” (as attached in Appendix 1).
- [Appendix 1] Reference Table of Common Accounting Subjects (Items) for Cultural Foundations.pdf
Article 19
The financial reports specified in the Standards refer to financial statements, various accounting statements, and other disclosures and explanations that help users in decision making.
Financial statements include the asset balance sheet, income and expenditures (balance) table, net worth change statement, cash flow statement and the notes or appendices.
Financial statements include the asset balance sheet, income and expenditures (balance) table, net worth change statement, cash flow statement and the notes or appendices.
Article 20
Except for newly-established cultural foundations, the financial statements for two periods must be compiled for comparison.
Financial statements shall be signed or sealed by the chairperson, in-charge accountant; affairs related to the supervisors or in-charge personnel shall be signed or sealed by the supervisor or personnel in charge of the affairs.
Financial statements shall be signed or sealed by the chairperson, in-charge accountant; affairs related to the supervisors or in-charge personnel shall be signed or sealed by the supervisor or personnel in charge of the affairs.
Chapter 5 Budget and Final Account Review
Article 21
The preparation and submission of the annual budget for cultural foundations shall follow the regulations below:
1. Cultural juridical persons established with donations from the government shall prepare a budget in the format prescribed by the Ministry (see Appendix 2) five months prior to the beginning of each fiscal year (i.e., before the end of July each year.) The budget must be approved by the board of directors and submitted to the Ministry of Culture for forwarding to the Legislative Yuan for review.
2. Cultural foundations funded by privates:
(1) Shall, within one month after the beginning of each fiscal year (i.e., before the end of January each year), prepare an annual work plan, a budget statement, and other necessary explanatory documents. These documents shall be approved by the board of directors and submitted to the Ministry of Culture for record.
(2) If the total registered assets with the court reach amount of NT$100 million, or the annual revenue for the year reaches amount of NT$10 million, the documents mentioned in the preceding paragraph shall be prepared in the format prescribed by the Ministry of Culture (see Appendix 3). For foundations not reaching the aforementioned thresholds, the prescribed format may be used as a reference.
1. Cultural juridical persons established with donations from the government shall prepare a budget in the format prescribed by the Ministry (see Appendix 2) five months prior to the beginning of each fiscal year (i.e., before the end of July each year.) The budget must be approved by the board of directors and submitted to the Ministry of Culture for forwarding to the Legislative Yuan for review.
2. Cultural foundations funded by privates:
(1) Shall, within one month after the beginning of each fiscal year (i.e., before the end of January each year), prepare an annual work plan, a budget statement, and other necessary explanatory documents. These documents shall be approved by the board of directors and submitted to the Ministry of Culture for record.
(2) If the total registered assets with the court reach amount of NT$100 million, or the annual revenue for the year reaches amount of NT$10 million, the documents mentioned in the preceding paragraph shall be prepared in the format prescribed by the Ministry of Culture (see Appendix 3). For foundations not reaching the aforementioned thresholds, the prescribed format may be used as a reference.
- [Appendix 2] Budget Report Format for Juridical Persons Established with Donations from the Government.pdf
- [Appendix 3].pdf
Article 22
The preparation and submission of the annual financial statements of cultural foundations shall follow the regulations below:
1. Cultural juridical persons established with donations from the government shall prepare, in accordance with the format prescribed by the Ministry (see Appendix 4), the financial statements for the preceding fiscal year before April 15 each year. After approval by the board of directors, the financial statement shall be submitted to the Ministry of Culture for forwarding to the Legislative Yuan for review.
2. Cultural foundations funded by privates,
(1) Shall, within five months after the end of each fiscal year (i.e., before the end of May each year), prepare an annual work report and financial statements for the preceding fiscal year, along with inventory of property and certification documents for funds. These documents shall be approved by the board of directors and submitted to the Ministry of Culture for record.
(2) If the total assets registered with the court reach the amount of NT$100 million, or the annual revenue for the year reaches the amount of NT$10 million, the documents mentioned in the preceding paragraph shall be prepared in the format prescribed by the Ministry of Culture (see Appendix 5). For foundations not reaching the aforementioned thresholds, the prescribed format may be used as a reference.
Cultural foundations whose financial statements are, in accordance with Paragraph 2, Article 24 of this Act, required to be audited and attested by a certified public accountant (CPA), shall not engage a CPA who has been subject to disciplinary action with official notice within the three fiscal years prior to the year of the audit engagement.
1. Cultural juridical persons established with donations from the government shall prepare, in accordance with the format prescribed by the Ministry (see Appendix 4), the financial statements for the preceding fiscal year before April 15 each year. After approval by the board of directors, the financial statement shall be submitted to the Ministry of Culture for forwarding to the Legislative Yuan for review.
2. Cultural foundations funded by privates,
(1) Shall, within five months after the end of each fiscal year (i.e., before the end of May each year), prepare an annual work report and financial statements for the preceding fiscal year, along with inventory of property and certification documents for funds. These documents shall be approved by the board of directors and submitted to the Ministry of Culture for record.
(2) If the total assets registered with the court reach the amount of NT$100 million, or the annual revenue for the year reaches the amount of NT$10 million, the documents mentioned in the preceding paragraph shall be prepared in the format prescribed by the Ministry of Culture (see Appendix 5). For foundations not reaching the aforementioned thresholds, the prescribed format may be used as a reference.
Cultural foundations whose financial statements are, in accordance with Paragraph 2, Article 24 of this Act, required to be audited and attested by a certified public accountant (CPA), shall not engage a CPA who has been subject to disciplinary action with official notice within the three fiscal years prior to the year of the audit engagement.
- [Appendix 4] Items Required in Foundations' Final Accounts.pdf
- [Attachment 5].pdf
Article 23
If the cultural foundation's expenditures on activities related to its purpose of establishment are lower than sixty percent of the sum of interest generated each year by the fund and other income, it shall pay income tax in accordance with laws except in case of any of the following:
1. Where the annual balance is lower than NT$500,000.
2. Where the annual balance is higher than NT$500,000 yet it has submitted a plan for expenditures with the balance for within four years starting from the following year on activities related to the purpose of its establishment and the plan is reviewed and approved by the Ministry.
1. Where the annual balance is lower than NT$500,000.
2. Where the annual balance is higher than NT$500,000 yet it has submitted a plan for expenditures with the balance for within four years starting from the following year on activities related to the purpose of its establishment and the plan is reviewed and approved by the Ministry.
Chapter 6 Finance and Accounting Procedures
Article 24
Finance and accounting procedures include various accounting procedures such as income and expenditure, custody, and disposal.
Financial income of cultural foundations shall in principle be deposited upon collection. With the exception of short-term working capital, the income of cultural foundations shall be deposited into financial institutions. and may not be deposited at other public or private enterprises or individuals.
Financial income of cultural foundations shall in principle be deposited upon collection. With the exception of short-term working capital, the income of cultural foundations shall be deposited into financial institutions. and may not be deposited at other public or private enterprises or individuals.
Article 25
Events leading to changes in assets, liabilities, equity, income or expenses of a cultural foundation are accounting events.
Accounting events involve rights and obligations to parties other than the cultural foundation are external accounting events. Accounting events do not involve parties other than the cultural foundation are internal accounting events.
Accounting events shall be recorded using the double-entry bookkeeping method.
Accounting events involve rights and obligations to parties other than the cultural foundation are external accounting events. Accounting events do not involve parties other than the cultural foundation are internal accounting events.
Accounting events shall be recorded using the double-entry bookkeeping method.
Article 26
Accounting events must be recorded in accordance with the sequence of occurrence on a daily basis no later than two months after such occurrence.
Article 27
Cultural foundations shall produce official receipts for income from donations.
The receipts in the preceding paragraph shall be clearly specified and they shall include the following fields and information:
1. Serial number, issuance date, name of recipient cultural foundation, address of the foundation, unified business number, and approved registration document number.
2. Basic information of the donor, donation amount or product name of non-cash items, unit, and quantity.
The receipt specified in Paragraph 1 shall be affixed with the seals of the cultural foundation, chairperson, and handling officer. A stub or other certificate or forms that can be used as evidence shall be retained for reference.
When using the deposit, both the chairperson or authorized representative of the cultural foundation and the in-charge accountant shall apply their seals on the withdrawal certificate.
The receipts in the preceding paragraph shall be clearly specified and they shall include the following fields and information:
1. Serial number, issuance date, name of recipient cultural foundation, address of the foundation, unified business number, and approved registration document number.
2. Basic information of the donor, donation amount or product name of non-cash items, unit, and quantity.
The receipt specified in Paragraph 1 shall be affixed with the seals of the cultural foundation, chairperson, and handling officer. A stub or other certificate or forms that can be used as evidence shall be retained for reference.
When using the deposit, both the chairperson or authorized representative of the cultural foundation and the in-charge accountant shall apply their seals on the withdrawal certificate.
Article 28
Subsidiary organizations of cultural foundations established in accordance with other laws and regulations shall perform accounting affairs and operate independently on a regular basis. However, their balances shall be listed in the income and expenditure of the cultural foundation at the end of the fiscal year for consolidated management and usage. They may not prepare separate annual income and expenditure budgets or final accounts.
The foundation's balance of the accounts from the previous fiscal year may be used as a source of income for expenditures in the next fiscal year.
The foundation's balance of the accounts from the previous fiscal year may be used as a source of income for expenditures in the next fiscal year.
Article 29
When cultural foundations process finances, no accounting document may be prepared and no record must be entered in account books and statements unless they are based on true events.
Article 30
All the accounting documents of a cultural foundation, except those which should be permanently kept or which are related to unsettled accounting events, must be kept for at least five years after the completion of annual closing procedures and the report to the Ministry for record.
All the accounting books and financial statements, except those for unsettled accounting events, must be kept for at least ten years after the completion of annual closing procedures and the report to the Ministry for record.
Upon the expiry of the retention period of the accounting vouchers, books, and financial statements in Paragraph 1 and the preceding paragraph, they may only be destroyed with the approval of the chairperson of cultural foundation or authorized individual; where government subsidies or appointments are involved, the regulations shall apply.
All the accounting books and financial statements, except those for unsettled accounting events, must be kept for at least ten years after the completion of annual closing procedures and the report to the Ministry for record.
Upon the expiry of the retention period of the accounting vouchers, books, and financial statements in Paragraph 1 and the preceding paragraph, they may only be destroyed with the approval of the chairperson of cultural foundation or authorized individual; where government subsidies or appointments are involved, the regulations shall apply.
Chapter 7 Computer-Processed Accounting Information
Article 31
Cultural foundations that use computers to process accounting information shall pay attention to the security and accuracy of the information and prevent fraud.
Article 32
When cultural foundations use computers to process accounting information, the hard disks, magnetic disks, CD-ROM, cloud server and other detailed records stored in other hardware shall be regarded as accounting books. They should be available for printing in certain parts or in their entirety regularly or upon demand in the retention period and they must be consistent with all accounting vouchers and financial reports.
Chapter 8 Supplementary Provisions
Article 33
The Standards are promulgated on February 1, 2019.
The amended provisions shall take effect on the date of promulgation.
The amended provisions shall take effect on the date of promulgation.