The Financial Supervisory Commission (FSC) yesterday announced that listed companies will be allowed to book their gains in real-estate investments based on market value next year.
The commission said in a statement that it would allow listed companies to use the so-called “market value method” to calculate their investment gains from the new fiscal year next year.
The commission said listed firms will be also allowed to use the income approach to evaluate their property assets owned for investment purposes, rather than the “cost method.”
Following the implementation of the international financial reporting standards (IFRS) accounting rule this year, listed companies are required by the commission to registered their real-estate investment gains by using “cost method” or comparing with their purchase prices.
The commission said sizable real-estate investments — with each project accounting for 20 percent of a listed firm’s paid-in capital or priced at more than NT$300 million (US$10.14 million) — would need professional appraisals by a third party, the statement said.
The latest relaxation is likely to boost net value of listed firms and helps enhance financial institutions' and life insurers’ capital adequacy ratio in particular, analysts said.
Separately, domestic securities brokers are expected to see extra earnings contribution from foreign currency exchange transactions, especially those associated with foreign deposits and assets, following the latest deregulation announced by the central bank.
Under current regulations, if consumers want to buy foreign currency-denominated securities through brokerages, they have to exchange currencies through banks first.
However, the monetary authority on Monday said it would allow Taiwanese brokerages to perform forex services for their clients without the need to go through banks, according to the central bank’s statement on its Web site.
Taiwan’s foreign exchange reserves fell below the US$600 billion mark at the end of last month, with the central bank reporting a total of US$596.89 billion — a decline of US$8.6 billion from February — ending a three-month streak of increases. The central bank attributed the drop to a combination of factors such as outflows by foreign institutional investors, currency fluctuations and its own market interventions. “The large-scale outflows disrupted the balance of supply and demand in the foreign exchange market, prompting the central bank to intervene repeatedly by selling US dollars to stabilize the local currency,” Department of Foreign
ENERGY ISSUES: The TSIA urged the government to increase natural gas and helium reserves to reduce the impact of the Middle East war on semiconductor supply stability Chip testing and packaging service provider ASE Technology Holding Co (日月光投控) yesterday said it planned to invest more than NT$100 billion (US$3.15 billion) in building a new advanced chip testing facility in Kaohsiung to keep up with customer demand driven by the artificial intelligence (AI) boom. That would be included in the company’s capital expenditure budget next year, ASE said. There is also room to raise this year’s capital spending budget from a record-high US$7 billion estimated three months ago, it added. ASE would have six factories under construction this year, another record-breaking number, ASE chief operating officer Tien Wu
Intel Corp is joining Elon Musk’s long-shot effort to develop semiconductors for Tesla Inc, Space Exploration Technologies Corp and xAI, marking a surprising twist in the chipmaker’s comeback bid. Intel would help the Terafab project “refactor” the technology in a chip factory, the company said on Tuesday in a post on X, Musk’s social media platform. That is a stage in the development process that typically helps make chips more powerful or reliable. The chipmaker’s shares jumped 4.2 percent to US$52.91 in New York trading on Tuesday. The Terafab project is a grand plan by Musk to eventually manufacture his own chips for
For weeks now, the global tech industry has been waiting for a major artificial intelligence (AI) launch from DeepSeek (深度求索), seen as a benchmark for China’s progress in the fast-moving field. More than a year has passed since the start-up put Chinese AI on the map in early last year with a low-cost chatbot that performed at a similar level to US rivals. However, despite reports and rumors about its imminent release, DeepSeek’s next-generation “V4” model is nowhere in sight. Speculation is also swirling over the geopolitical implications of which computer chips were chosen to train and power the new
RSS