IFRS Seminar - Taiwan Looking into the future* 11 August 2010 *connectedthinking

Slide 1 PricewaterhouseCoopers Issues and Challenges Too many changes are expected, which create uncertainty Uncertainty regarding timing of issuance of exposure draft, final standards and standard effective date Standard changes are too frequent Consistency of application among different countries Lack of practical guidance Lack of fair value where there is no active market Impact of IFRS on certain industry may be HUGE Country specific and unique issue Future role of country’s standard setting body Increase the difficulty and challenge of audit

Slide 2 PricewaterhouseCoopers Suggestion For our regulator Decide a definite version of IFRS for the first time adoption. Define the role of ARDF after 2013 Provide transition rule for certain industry with BIG impact Actively communicate with IASB to address/resolve country specific issues For IASB: There should be a minimum period between standard release date and effective date to allow preparation and transition Unless absolute necessary, each standard should remain effective for a period of time (say at least 5-7 years) Consider to issue more practical guidance Consider to develop more practical solution to determine fair value when there is no active market

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