Sun, Jan 11, 2009 - Page 12 News List

Premier backs rejection of delay to accounting rule

By Mo Yan-chih and Shih Hsiu-chuan  /  STAFF REPORTERS

Premier Liu Chao-shiuan (劉兆玄) yesterday threw his support behind Financial Supervisory Commission (FSC) Chairman Sean Chen (陳冲), who rejected a suggestion by President Ma Ying-jeou (馬英九) on Friday that the government delay a revised inventory accounting rule out of consideration for businesses whose margins have been affected by the economic downturn.

Liu said the FSC would stick to its position on implementing the inventory accounting rule, called the International Accounting Standards Statement No. 10.

“The FSC has announced the new accounting rule. We will listen to the opinions of others and take them into consideration, but implementing the rule was already determined,” Liu said.

Liu said the government would consider proposing supportive measures for the new rule, which requires listed companies to mark-to-market their inventories in financial reports. He declined to elaborate.

On Thursday, the Presidential Office’s economic advisory committee suggested the government temporarily suspend the implementation of the rule, citing concerns of margin erosion by businesses.

Yesterday, the Presidential Office said it would respect the Cabinet’s decision on whether or not to suspend the implementation of a revised accounting rule even though Ma had called on the Cabinet to reconsider the accounting rule’s implementation during a meeting with business representatives at the Hsinchu Science Park (新竹科學園區).

Presidential Office spokesman Wang Yu-chi (王郁琦) said yesterday that Ma made the remarks on Friday to reflect the opinions of the high-tech industry, and the Presidential Office would not interfere with the Cabinet’s decision on the matter.

“President Ma understands that many business groups had different opinions about the new rule, but as economic issues were involved, we will respect the FSC and the Cabinets’ decision on whether or not to delay the implementation,” Wang said.

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