Revision of Business Accounting Law Requires Costing of Employee Bonuses

           The following are the main points of a revision of the Business Accounting Law, which was passed by the Legislative Yuan on April 28 and promulgated by the President on May 24:

1.The maximum fine for violations of the law by responsible persons of businesses, accounting personnel, or personnel commissioned to carry out accounting on behalf of others is raised from NT$150,000 to NT$600,000.

2.The provision prohibiting the listing of dividend and bonus payouts as expenses is deleted. In the future, such payouts will be listed as costs or losses, bringing Taiwan’s financial reporting into line with international norms.

　　The Commerce Department, Ministry of Economic Affairs will revise the relevant subsidiary acts, including the Regulation on Business Entity Accounting Handling. For the full content of the revision, please consult http://www.lawbank.com.tw/fnews/news.php?keyword=&sdate=&edate=&type_id=19&total=16616&nid=40357.00&seq-243.

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