Chapter 3 Accounting System |
| Article 21 |
The accounting system of a collective trust account shall be based on generally accepted accounting principles, rules prescribed by the Trust Association, and relevant laws and regulations. |
| Article 22 |
Unless the terms and conditions provide otherwise, a trust enterprise shall, at the end of each business day, calculate the net asset value per beneficial unit of each collective trust account.
The Trust Association shall draft standards for the calculation of net asset value of trust assets in a collective trust account and submit them to the competent authority for approval. |
| Article 23 |
A trust enterprise may pay taxes arising from the management of a collective trust account as well as expenses or financial obligations arising from the handling of trust business by directly deducting them from the trust assets of the account.
Where relevant laws require that taxes be withheld from a collective trust account, the trust enterprise shall be the withholding agent and issue withholding statement to each beneficiary in accordance with the ratio of beneficiary rights held by such beneficiary. |
| Article 24 |
All profits and losses arising from the utilization of assets in a collective trust account shall belong to or be borne by the account. |
| Article 25 |
A trust enterprise shall prepare separate account books for each collective trust account and include therein the accounting process; the trust enterprise shall also, on a regular basis, produce a report on the account.
Within 4 months following the conclusion of each fiscal year, a trust enterprise shall prepare a final accounts report on the trust assets held in each collective trust account, and, after such report is certified by a certified public accountant, submit same to the Trust Association for reporting to the competent authority and notify the trustors and beneficiaries. A trust enterprise shall also prepare monthly reports within 10 business days after the end of each month and submit same to the Trust Association for reporting to the competent authority.
The formats for final accounts report and monthly report referred to in the preceding paragraph shall be prescribed by the Trust Association and submitted to the competent authority for recordation.
Where the terms and conditions provide for a trust supervisor, the final accounts report referred toin Paragraph 2 hereof shall first be acknowledged by such supervisor. |
| Article 26 |
When a collective trust account is terminated, the trust enterprise shall complete liquidation of the collective trust account within 3 months from the approval by or recordation with the competent authority. The trust assets after liquidationshall be distributed to respective beneficiaries based on the proportion of beneficiary rights.
A trust enterprise shall report the liquidation and distribution methods in the preceding paragraph to the competent authority and publicly announce it, and notify the beneficiaries; within 2 months after the date upon which the liquidation procedures are concluded, the trust enterprise shall notify the competent authority by letter of the results thereof for recordation, and notify the beneficiaries. However for collective trust accounts that accept funds from professional investors only, the trust enterprise is not required to make public announcement.
Where the terms and conditions provide for a trust supervisor, the report or notification referred to in the preceding paragraph shall first be acknowledged by such supervisor before being submitted to the competent authority or sent to the competent authority by letter for recordation. |