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NOTICE OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE RULES FOR THE BID INVITATION OF ACCOUNTING FIRMS FOR THE AUDIT ENTRUSTMENT






the Ministry of Finance

Notice of the Ministry of Finance on Printing and Distributing the Rules for the Bid Invitation of Accounting Firms for the Audit
Entrustment

Cai Hui [2006] No.2

To the departments (bureaus) of finance of all provinces, autonomous regions and municipalities directly under the Central Government,
Shenzhen City Bureau of Finance, relevant ministries, commissions of and institutions directly under the State Council and enterprises
under central administration,

For the purpose of regulating the activities relating to the bid invitation of accounting firms for the audit entrustment, promoting
the fair competition in the industry of certified public accountants and protecting the lawful rights and interests of tenderees
and bidding firms, the Ministry of Finance has formulate the Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment,
which are now printed and distributed to you. The Rules shall come into force as of the date of March 1, 2006.

Annex: Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment

Ministry of Finance (Seal)

January 1, 2006 Annex:Rules for the Bid Invitation of Accounting Firms for the Audit Entrustment

Article 1

For the purpose of regulating the activities relating to the bid invitation of accounting firms (hereinafter referred to as the firms)
for the audit entrustment, promoting the fair competition in the industry of certified public accountants and protecting the lawful
rights and interests of tenderees and bidding firms, these Rules are formulated according to the Bidding Law of the People’s Republic
of China, the Law of the People’s Republic of China on Certified Public Accountants and other relevant laws.

Article 2

The tenderees shall abide by the Bidding Law of the People’s Republic of China for the audit entrustment of firms by way of bid invitation,
which shall conform to these Rules.

Article 3

The principles of openness, fairness, equity and good faith shall be followed for the bidding activities.

No entity or individual may violate the laws or administrative regulations, restrict or exclude firms from participating in the bidding
or illegally interpose the bidding in any form.

When undertaking and conducting the audit work by way of bidding, a firm shall abide by the audit rules and professional ethics, fulfill
obligations and accomplish the bid winning project in strict accordance with the agreement on the audit work.

Article 4

The following procedures shall be observed when conducting the bid invitation of firms for the entrustment of audit work:

(1)

Bid invitation, which includes the determination of the way of bid invitation, the issuance of bid invitation announcements (in the
case of public bid invitation) or issuance of bid invitation letters (in the case of selective bid invitation), the formulation of
bid invitation documents and the delivery of bid invitation documents to potential bidding firms;

(2)

Bid opening;

(3)

Bid evaluation; and

(4)

Determination of the bid winning firm, issuance of the bid winning notice and conclusion of the agreement on the audit work with the
bid winning firm.

Article 5

Generally, a tenderee shall entrust a firm by way of public bid invitation.

If a bid invitation project is under any of the following circumstances, the method of selective bid invitation may be adopted:

(1)

There is particularity , meaning the firm can only be chosen from a limited scope; or

(2)

There is an emergency, meaning the entrustment cannot be accomplished by the way of public bid invitation within the prescribed time
limit.

Article 6

Where the way of public bid invitation is adopted, a bid invitation announcement shall be publicized. Where the way of selective bid
invitation is adopted, the bid invitation letters shall be sent out to at least three firms.

The bid invitation announcement and the bid invitation letters shall state the name and address of the tenderee, the quality, quantity,
implementation site and time of the bid invitation project as well as the measures for obtaining bid invitation documents, etc.

Article 7

A tenderee may request the potential firms to provide relevant qualification certificates and performance conditions in the bid invitation
announcement or the bid invitation letters, and carry out the qualification examination of potential bidding firms according to the
requirements of the project for bid invitation.

A tenderee shall make full use of the industrial information as publicized by the fiscal department and the association of certified
public accountants, and implement the provisions of the Ministry of Finance on the audit administration during the process of qualification
examination,.

Article 8

A tenderee shall formulate bid invitation documents according to the characteristics of bid invitation project and the requirements.
The bid invitation documents shall include:

(1)

The introduction of the bid invitation project;

(2)

The standards for the qualification examination of bidding firms;

(3)

The requirements on the quotes for bidding;

(4)

The standards for bid evaluation; and

(5)

The main articles of the agreement on the audit work to be concluded.

Article 9

A tenderee shall make explicit disclosure of the information about the bid invitation project in the bid invitation documents in order
to facilitate the determination of the workload, the formulation of the work schemes, the presentation of reasonable quotes and the
formulation of bidding documents by the bidding firms, which shall include the organizational structure, industry, operational type,
distribution and financial information (such as the assets scale and structure, debts, annual revenues and other relevant financial
indicators) of the entities to be audited.

Article 10

A tenderee shall conform to the requirements of the bid invitation project and reasonably determine the evaluation items, set down
the standards for evaluation and design the weight of the score of each evaluation item in the total score by the way of comprehensively
considering the work schemes, personnel situation, relevant work experiences, records of professional ethics and quality control
level, degree of commercial responses and quotes of bidding firms. The weight of the score as reported by any bidding firm shall
not be more than 20%.

The specific design of bid evaluation standards may be determined by referring to the attached Reference Table for the Evaluation
Items and the Design of their Weights.

Article 11

Where the time limit to complete the corresponding work for a bid invitation project needs to be determined, the tenderee shall reasonably
determine the time limit by taking into account the particularity of the industrial services of certified public accountants, and
state it in the bid invitation documents.

Article 12

A tenderee may organize the potential bidding firms for discussions and answering questions according to the specific conditions of
the bid invitation project. Where the potential bidding firms need to consult the detailed materials about the bid invitation project,
the tenderee shall offer convenience if possible.

Article 13

A tenderee shall consider the particularity of the industrial services of certified public accountants when determining the time limit
for the bidding firms to formulate bidding documents, and the time limit shall generally be not less than 20 days from the day when
the bid invitation documents are sent out to the expiry date for the bidding firms to submit bidding documents.

Article 14

A tenderee shall open the bids publicly and invite all the bidding firms to participate in the bid opening.

Article 15

A tenderee shall organize a bid appraisal committee to be responsible for bid appraisal.

The bid appraisal committee shall be composed of representatives of the tenderee and experts familiar with the industry of certified
public accountants Anyone that has interests with a tenderer shall not be a member of the bid appraisal committee for the relevant
project.

The members of a bid appraisal committee (hereinafter referred to as the judges) shall be an odd number of 5 persons or more, of which
the experts familiar with the industry of certified public accountants shall be no less than two thirds of all the members generally.

The name list of judges shall be kept unannounced before the bid winning results are determined.

Article 16

A tenderee shall take measures necessary to guarantee that the bids are evaluated under a strictly confidential circumstance. No entity
or individual may illegally intervene in or influence the process or result of bid appraisal.

Article 17

The judges shall give scores for bidding firms according to the standards for bid appraisal.

The bid appraisal committee shall rank all the bidding firms according to their scores and recommend the bid winning candidate firms
according to the ranking.

Article 18

The bid appraisal committee shall work out a written bid appraisal report to the tenderee after completing the bid appraisal,.

The tenderee shall determine the bid winning firm according to the written bid appraisal report as worked out and the bid winning
candidate firms as recommended by the bid appraisal committee, or may authorize the bid appraisal committee to directly determine
the bid winning firm.

Article 19

After the bid winning firm is determined, the tenderee shall send out a bid winning notice to the bid winning firm, and notify the
bid winning result to all the bidding firms that fail the bidding.

Article 20

A tenderee shall conclude an agreement on the audit work with the bid winning firm on the basis of the bid invitation documents and
the bidding documents of the bid winning firm within 30 days after the bid winning notice is sent out.

The tenderee shall not require the bid winning firm to alter the substantial contents of the bid invitation project, enhance the technical
requirements of the bid invitation project, reduce the fees for the entrusted matter or seek for commissions from the bid winning
firm for any excuse.

The tenderee shall not conclude any other agreement with the bid winning firm that is contrary to the substantial contents of the
agreement on the audit work.

Article 21

The Ministry of Finance and the fiscal departments of all the provinces, autonomous regions and municipalities directly under the
Central Government shall supervise the audit-related bidding activities and deter and deal with illegal and irregular acts during
the course of audit-related bidding activities according to the law.

Article 22

The entrustment of firms for other authentication and relevant services by the tenderees by way of bid invitation shall be conducted
by reference to these Rules.

Article 23

The power to interpret these Rules shall remain with the Ministry of Finance.

Article 24

These Rules shall come into force as of March 1, 2006.

Annex: Reference Table for the Appraisal Items and the Design of Their Weights htm/e04794.htmAnnex

￿￿

￿￿

Annex:

Reference Table for the Appraisal Items and the Design of Their Weights

￿￿

Appraisal Items

Weight Scope

Work Plan

20%-30%

Personnel Situation

20%-30%

Relevant Work Experiences

15%-25%

Records of Professional Ethics and Quality Control Level

10%-15%

Degree of Commercial Responses

5%

Quote

10%-20%

￿￿￿￿Annotation: As to the appraisal of quotes, the standards for appraisal shall be the absolute value of the discrepancy between the
quote and average quote, and the lower the absolute value of the discrepancy is, the higher the score will be.



ANNOUNCEMENT NO.5, 2006 OF MINISTRY OF COMMERCE, ON STARTING ANTI-DUMPING INTERIM REVIEW ON IMPORTED ETHANOLAMINE

Ministry of Commerce

Announcement No.5, 2006 of Ministry of Commerce, on Starting Anti-dumping Interim Review on Imported Ethanolamine

[2006] No.5

The Ministry of Commerce issued Announce No.57 of 2004 on November 14, 2004 to start levying anti-dumping duties on imported Ethanolamine
(hereinafter referred to as investigated product) originating in Japan, the U.S., Iran, Malaysia, Taiwan Region and Mexico. Among
the related enterprises, the anti-dumping duties rate on Ethanolamine from Optimal Chemicals (Malaysia) Sdn. Bhd. was 9%.

The above-mentioned enterprise applied to Ministry of Commerce for a dumping and dumping margins judicial review on the anti-dumping
measures implemented to the enterprise and raised petition for amending the anti-dumping duty rate correspondingly.

In respond to the application, Ministry of Commerce made an examination on related issues and decided to start a judicial review,
as of the date when this announcement is issued, on the anti-dumping measures implemented on the investigated product from the above-mentioned
enterprise during a period from January 1, 2005 to December 31, 2005.

The investigated product is listed under No. 29221100, 29221200 in Import and Export Tariffs of the General Administration of Customs
of the People’s Republic of China.

Interested parties can apply in written forms to respond to charges in the interim review within 20 days as of the date the Announcement
is issued.

To get the necessary information for the investigation, Ministry of Commerce will send out questionnaire to the interested parties
accordingly, the answer sheet of which shall be submitted within 37 days as of the date of issuance of the questionnaire.

The interested parties could raise written petition for holding a hearing, which could also be held initiatively by Ministry of Commerce
when necessary.

Ministry of Commerce could, when necessary, send out staff to relate countries for field examination and verification, before which
the countries and enterprises will get notice in advance.

Any form of obstruction against the investigation may result in an arbitration based on the available fact and information.

Address: No. 2, DongChangAn St., Beijing

Postcode: 100731

Bureau of Fair Trade for Imports and Exports, Ministry of Commerce

Tel: 86-10-65198924;65198915

Fax: 86-10-65198915;65198172

Ministry of Commerce

February 10, 2006

 
Ministry of Commerce
2006-02-10

 



ACCOUNTING STANDARDS FOR ENTERPRISES NO. 11 – SHARE-BASED PAYMENTS

The Ministry of Finance

Accounting Standards for Enterprises No. 11 – Share-based Payments

Cai Kuai [2006] No.3

February 15, 2006

Chapter I General Provisions

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basic Standards for the purpose of regulating
the recognition, and measurement of share-based payments, and the disclosure of relevant information. .

Article 2

The term “share-based payment” refers to a transaction in which an enterprise grants equity instruments or undertakes equity-instrument-based
liabilities in return for services from employee or other parties.

The share-based payments shall consist of equity-settled share-based payments and cash-settled share-based payments.

The term “equity-settled share-based payment” refers to a transaction in which an enterprise grants shares or other equity instruments
as a consideration in return for services.

The term “cash-settled share-based payment” refers to a transaction of payment of cash or any other asset obligation calculated and
determined on the basis of shares or other equity instruments undertaken by the enterprise in return for services.

The term “equity instrument” as mentioned in these Standards refers to the equity instruments of the enterprise’s own.

Article 3

The following items shall be governed by other accounting standards:

(1)

The Accounting Standards for Enterprises No. 20 – Business Combination shall apply to a transaction in which an enterprise issue the
equity instrument and obtains the net assets of another enterprise in a business combination.

(2)

The Accounting Standards for Enterprises No. 22 – Recognition and Measurement of Financial Instruments, shall apply to a transaction
in which equity instruments are granted as a consideration for other financial instruments.

Chapter II The Equity-settled Share-based Payments

Article 4

The equity-settled share-based payment in return for employee services shall be measured at the fair value of the equity instruments
granted to the employees.

The fair value of the equity instruments shall be confirmed in accordance with Accounting Standards for Enterprises No. 22 – Recognition
and Measurement of Financial Instruments.

Article 5

As to an equity-settled share-based payment in return for services of employees, if the right may be exercised immediately after the
grant, the fair value of the equity instruments shall, on the date of the grant, be included in the relevant cost or expense and
the capital reserves shall be increased accordingly.

The “grant date” refers to the date on which the share-based payment agreement is approved.

Article 6

As to a equity-settled share-based payment in return for employee services, if the right cannot be exercised until the vesting period
comes to an end or until the prescribed performance conditions are met, then on each balance sheet date within the vesting period,
the services obtained in the current period shall, based on the best estimate of the number of vested equity instruments, be included
in the relevant costs or expenses and the capital reserves at the fair value of the equities instruments on the date of the grant.

If, on the balance sheet date, the subsequent information indicates that the number of vested equity instruments is different from
the previous estimate, an adjustment shall be made and on the vesting date, the estimate shall be adjusted to equal the number of
the actually vested equity instruments.

The ” vesting period” refers to the period during which the specified vesting conditions are to be satisfied.

As to a share-based payment with a specified service period as the vesting condition, the vesting period shall be from the grant date
to the vesting date. As to a share-based payment with specified performances as the vesting condition, the length of the vesting
period shall be estimated in accordance with the most likely performance outcome.

The “vesting date” refers to the date on which the vesting conditions are met and the employees and other parties have the right to
obtain the equity instruments or cash from an enterprise.

Article 7

An enterprise shall, after the vesting date, make no adjustment to the relevant costs or expenses as well as the total amount of the
owner’s equities which have been confirmed.

Article 8

An equity-settled share-based payment in return for the service of any other party shall be conducted in accordance with the following
circumstances, respectively:

(1)

If the fair value of the service of any other party can be measured in a reliable way, the fair value of the service on the acquisition
date by any other service party shall be included in the relevant costs or expenses, and the owner’s equities shall be increased
accordingly.

(2)

If the fair value of the service of any other party can not be measured in a reliable way, but the fair value of the equity instruments
can be measured in a reliable way, the fair value of the equity instruments on date of the service acquisition shall be included
in the relevant costs or expenses, and the owner’s equities shall be increased accordingly.

Article 9

On the vesting date, an enterprise shall, based on the number of the equity instruments of which the right is actually exercised,
calculate and confirm the amount of the paid-in capital or capital stock to be transferred in, and transfer it in the paid-in capital
or stock capital.

The “vesting date” refers to the date on which the employees and other parties exercise the right, acquire cash or equity instruments.

Chapter III The Cash-settled Share-based Payments

Article 10

A cash-settled share-based payment shall be measured in accordance with the fair value of liability calculated and confirmed based
on the shares or other equity instruments undertaken by an enterprise. .

Article 11

As to a cash-settled share-based payment instruments, if the right may be exercised immediately after the grant, the fair value of
the liability undertaken by the enterprise shall, on the date of the grant, be included in the relevant costs or expenses, and the
liabilities shall be increased accordingly.

Article 12

As to a cash-settled share-based payment, if the right may not be exercised until the vesting period comes to an end or until the
specified performance conditions are met, on each balance sheet date within the vesting period, the services obtained in the current
period shall, based on the best estimate of the information about the exercisable right, be included in the relevant costs or expenses
and the corresponding liabilities at the fair value of the liability undertaken by the enterprise.

If, on the balance sheet date, the subsequent information indicates that fair value of the current liability undertaken by the enterprise
are different from the previous estimates, an adjustment shall be made and on the vesting date the estimate shall be adjusted to
equal the actually exercisable right.

Article 13

An enterprise shall, on each balance sheet date and on each account date prior to the settlement of the relevant liabilities, re-measure
the fair values of the liabilities and include the changes in the current profits and losses.

Chapter IV Disclosure

Article 14

An enterprise shall, in the notes, disclose the information related to the cash-settled share-based payments as follows:

(1)

The total amounts of the equity instruments that are granted, exercised and invalidated in the current period;

(2)

The range of the vesting prices for the share options or other equity instruments issued outward at the end of period, and the remainder
of the contractual period;

(3)

The weighted average prices of the share options or other equity instruments exercised in the current period which are calculated
based on the vesting date prices; and

(4)

The measures for the confirmation of the fair value of the equity instruments.

The enterprise may disclose the information of homogeneous share-based payments on a consolidated basis.

Article 15

An enterprise shall, in its notes, disclose the effects of the share-based payment transactions on the current financial status and
operating outcomes, which shall at least include the information as follows:

(1)

The total amount of the expenses as result of equity-settled share-based payments, which is recognized in the current period;

(2)

The total amount of the expenses as a result of cash-settled share-based payments, which is recognized in the current period; and

(3)

The total amount of the employee services and other party services as a result of the share-based payments in the current period
.



 
The Ministry of Finance
2006-02-15

 






ACCOUNTING STANDARDS FOR ENTERPRISES NO. 26 – REINSURANCE CONTRACTS

the Ministry of Finance

Accounting Standards for Enterprises No. 26 – Reinsurance Contracts

No. 3 [2006] of the Ministry of Finance

February 15, 2006

Chapter I General Principles

Article 1

With a view to regulating the recognition and measurement of reinsurance contracts, and the presentation of relevant information,
the present Standards is formulated according to the Accounting Standards for Enterprises – Basic Standards .

Article 2

The term “reinsurance contract” refers to an insurance contract under which the insurer (reinsurance cedant) cedes a certain portion
of a premium to another insurer (reinsurance acceptor) and the reinsurance acceptor makes compensation to the cedant for the compensation
cost and other relevant expenses arising from the original insurance contract.

Article 3

The present Standards shall apply to the reinsurance contracts issued and held by insurers.

A sub-reinsurance contract under which an insurer cedes a reinsurance business which is ceded to it to another insurer shall be subject
to the present Standards .

Article 4

The original insurance contracts issued by insurers shall be subject to the Accounting Standards for Enterprises No. 25 – Original
Insurance Contracts.

Chapter II Accounting Treatment of Ceded-out Business

Article 5

No cedant may countervail the liabilities formed by relevant original insurance contracts with the assets formed by reinsurance contracts
against.

No cedant may countervail the expenses or incomes formed by the relevant original insurance contracts with the incomes or expenses
formed by the reinsurance contracts.

Article 6

A cedant shall, in the current period of recognition of the premium income of an original insurance contract, calculate and determine
the ceded premium in light of the reinsurance contract and record it into the profits and losses of the current period. Meanwhile,
if the original insurance contract is a non-life original insurance contract, the cedant shall, according to relevant provisions
of the reinsurance contract, calculate and recognize the receivable reinsurance unearned premium reserve as an asset and countervail
with it the undue premium reserve.

When the cedant adjusts the balance of the unearned premium reserve of the original insurance contract on the balance sheet date,
it shall adjust the amount of the receivable reinsurance unearned premium reserve accordingly.

Article 7

A cedant shall, in the current period of recognition of the premium income of the original insurance contract, calculate and determine
the reinsurance expenses which shall be recovered from the reinsurance acceptor and record them into the profits and losses of the
current period.

Article 8

A cedant shall, in the current period of drawing the reserve for unearned premium, reserve for life insurance liabilities or reserve
for long-term health insurance liabilities of an original insurance contract, calculate and determine the corresponding reserves
that shall be recovered from the reinsurance acceptor according to the provisions of the relevant reinsurance contract, and shall
recognize the corresponding reinsurance reserve receivable as an asset.

Article 9

A cedant shall, in the current period of determining and offsetting the amount of an indemnity payment or the expenses actually incurred
for the settlement of a claim against the balance of the corresponding reserve on the original insurance contract, offset it against
the balance of the corresponding receivable reinsurance reserve. Meanwhile, it shall, according to the provisions of the re-insurance
contracts, calculate and determine the compensation cost that shall be recovered from the reinsurance acceptor, and record it into
the profits and losses of the current period.

Article 10

A cedant shall, in the current period of the canceling of an original insurance contract ahead of schedule, calculate and determine
the amount of adjustment to the ceded premium or the recovered reinsurance expenses according to the provisions of the relevant reinsurance
contract, and record it into the profits and losses of the current period. Meanwhile, it shall write off the amount of the relevant
reinsurance reserves receivable.

Article 11

A cedant shall, in the current period of making an adjustment to the compensation cost of an original insurance contract because of
the obtainment or disposal of any post-loss goods, or recognition and receipt of any subrogation recourse fee, calculate and determine
the amount of adjustment to the to-be-recovered compensation cost according to the provisions of the relevant reinsurance contract,
and record it into the profits and losses of the current period.

Article 12

When a cedant issues a reinsurance bill, it shall recognize the reinsurance guarantee deposited in the current period as described
in the bill as the deposited-in reinsurance guarantee. Meanwhile, it shall write off the relevant deposited-in reinsurance guarantee
in light of the refund of the deposited-in reinsurance guarantee of the previous period as described in the bill.

The cedant shall, according to the relevant reinsurance contract, calculate the interest on the deposited-in reinsurance guarantee
of each period and record it into the profits and losses of the current period.

Article 13

A cedant shall, when being able to calculate and determine the net profit commissions which it shall charge from the reinsurance acceptor,
treat the profit commission as a recovered reinsurance expense according to the provisions of the relevant reinsurance contracts,
and record it into the profits and losses of the current period.

Article 14

As for a excess of loss reinsurance or any other non-proportional reinsurance contract, the cedant shall, according to the provisions
of the reinsurance contract, calculate and determine the premium to be ceded out, and record it into the profits and losses of the
current period.

A cedant shall, when making an adjustment to the premium, record the amount of adjustment into the profits and losses of the current
period.

A cedant shall, when being able to calculate and determine the compensation cost that shall be recovered from the reinsurance acceptor,
record the to-be-recovered compensation cost into the profits and losses of the current period.

Chapter III Accounting Treatment of Ceded-in Business

Article 15

No reinsurance premium income may be recognized unless it can simultaneously satisfy the following conditions:

(1)

The reinsurance contract is established and assumes relevant insurance liabilities;

(2)

The economic benefits related to the reinsurance contract are likely to flow in;

(3)

The economic benefits related to the reinsurance contract can be measured reliably.

The reinsurance acceptor shall, according to the provisions of the relevant reinsurance contracts, calculate and determine the amount
of reinsurance premium income.

Article 16

The reinsurance acceptor shall, in the current period of recognizing a reinsurance premium income, calculate and determine the reinsurance
expenses according to the provisions of the relevant reinsurance contracts, and record them into the profits and losses of the current
period.

Article 17

The reinsurance acceptor shall, when being able to calculate and determine the net profit commissions that it shall pay to the cedant,
treat the profit commissions as a reinsurance expense according to the provisions of the relevant reinsurance contracts, and record
it into the profits and losses of the current period.

Article 18

The reinsurance acceptor shall, when receiving a reinsurance bill, make an adjustment to the relevant premium income and premium expenses
in light of the amount as specified in the bill, and record the amount of adjustment into the profits and losses of the current period.

Article 19

The reinsurance acceptor shall accord with the relevant provisions of the Accounting Standards for Enterprises No. 25 – Original Insurance
Contracts when it draws reserves for unearned reinsurance premiums, outstanding reinsurance claims, reinsurance life insurance liabilities
and the reinsurance of long-term health care insurance liabilities, and tests the adequacy of the relevant reserves.

Article 20

The reinsurance acceptor shall, in the current period of receipt of a reinsurance bill, treat the amount of the reinsurance indemnity
payment as described in the said bill as the reinsurance compensation cost and record it into the profits and losses of the current
period.

Meanwhile, it shall offset it against the balance of the reinsurance reserve.

Article 21

The reinsurance acceptor shall, when receiving a reinsurance bill, shall recognize the reinsurance guarantee to be deposited in the
current period as stated in the bill as the deposited-out reinsurance guarantee. Meanwhile, it shall write off the relevant deposited
reinsurance guarantee in light of the refund of the deposit-out reinsurance guarantee of the previous period as stated in the bill.

The reinsurance acceptor shall, according to the provisions of the reinsurance contract, calculate the interest on the deposit-out
reinsurance guarantee of each period and record it into the profits and losses of the current period.

Chapter IV Presentation

Article 22

An insurer shall, in its balance sheets, separately present the following items related to the reinsurance contract:

(1)

the receivable reinsurance;

(2)

the receivable unearned reinsurance premium reserve;

(3)

the receivable reserve for outstanding reinsurance claims;

(4)

the receivable reserve for reinsurance life insurance liabilities;

(5)

the receivable reserve for the reinsurance of long-term health insurance liabilities; and

(6)

the payable reinsurance.

Article 23

An insurer shall, in its profit statements, separately present the following items related to the reinsurance contract:

(1)

the reinsurance premium income;

(2)

the ceded-out premium;

(3)

the recovered reinsurance expense;

(4)

the reinsurance expense;

(5)

the recovered compensation cost;

(6)

the reinsurance compensation cost;

(7)

the recovered reinsurance compensation cost;

(8)

the recovered reserve for life insurance liabilities; and

(9)

the recovered reserve for long-term health insurance liabilities.

Article 24

An insurer shall, in its notes, discover the following information related to the reinsurance contract:

(1)

the information on the increase and decrease of reinsurance reserves for the ceded-in business.

(2)

the main actuarial assumptions and methods for making reinsurance reserves and testing the adequacy of the reinsurance reserves for
the ceded-in business.



 
the Ministry of Finance
2006-02-15

 






1...232425Page 25 of 25

CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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