The finance panel of the Economic Development Advisory Conference (經發會) made several resolutions yesterday, including making Taiwan's accounting system compatible with international standards within the next five years.
The proposal was made by two members of the panel, including Lin Jong-hsiung (林鐘雄), chairman of Taiwan Stock Exchange. Lin proposed that the administration set up a task force, including Securities and Futures Commission, Taiwan Stock Exchange, and the over-the-counter TAISDAQ, to study and revamp Taiwan's accounting system to be compatible with international standard in the next five years. The proposal was supported by all the members of the panel. Another member proposed that Taiwan should adopt the International Accounting Standard.
Four accounting standards, depending on the size of the company, are currently being used in Taiwan. The complexity of the "system" has made Taiwan's financial reports hard for foreigners to decipher.
Financial disclosure is a primary responsibility for listed companies if they want to be accepted by foreign investors.
Another resolution, which was supported by all panel members, was to simplify and deregulate the qualification and application procedures for foreign investors in the local stock market.
A proposal to lower the government's stake in state-owned banks to under 20 percent within the next five years also recieved overwhelming support.
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