Taiwan FSC Proposes Revised Futures Firms’ Reporting Rules to Align With IFRS 18

International Financial Reporting Standard 18, or IFRS 18, will replace the current IAS 1 and is intended to improve the comparability of information about companies’ financial performance. With Taiwan expected to adopt the standard in 2028, the Financial Supervisory Commission is revising financial reporting rules for futures firms so investors can more clearly distinguish operating profit and the performance measures used by management.

The FSC recently proposed amendments to the Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants. Key changes include restructuring the statement of comprehensive income, adding an “operating profit or loss” subtotal and revising related balance-sheet items. The amendments would also require disclosure of management-defined performance measures, or MPMs, and are expected to formally take effect alongside IFRS 18 in 2028.