Announced on behalf of Taiwan Life for the change in accounting policy starting from January 1, 2026.
1.Date of the board of directors' resolution:2026/09/30
2.Nature of the change:Change in accounting policy
3.Reason for the change:Taiwan Life announced to change the accounting policy
regarding the subsequent measurement of investment property from cost model
to fair value model.
4.Changed period for retrospective application of the new accounting policy:
2026/01/01
5.The line items affected and the actual effect for the year
before accounting change:The affected items are as follows.
(1)Consolidated balance sheet as of 2025/01/01: Investment property decreased
NT$6.28 billion, Deferred tax assets increased NT$1.99 billion, Deferred tax
liabilities increased NT$0.86 billion and Total shareholders' equity
decreased NT$5.15 billion.
(2)Consolidated balance sheet as of 2025/12/31: Investment property increased
NT$0.93 billion, Property and equipment decreased NT$0.04 billion,
Right-of-Use asset decreased NT$0.15 billion, Deferred tax assets increased
NT$0.92 billion, Deferred tax liabilities increased NT$1.3 billion and Total
shareholders' equity increased NT$0.36 billion.
(3)Consolidated statement of comprehensive income for the year 2025:
Change in fair value of investment properties increased NT$7.01 billion,
Income tax expense increased NT$1.50 billion and Net income increased
NT$5.51 billion.
6.Actual effect on the opening balance of retained earnings for
the past accounting year:The opening balance of retained earnings for 2025
decreased by NT$5.15 billion.
7.The reasonableness and necessity for the change in accounting policy
or accounting estimate after the beginning of the accounting year:To
strengthen the matching of assets and liabilities, facilitate alignment with
IFRS 17, reflect the economic substance of Taiwan Life's assets, and enhance
the transparency of financial reporting.
8.If the decided effect is impracticable, specify the reasons
why retrospective application is impracticable, and how and from
when the accounting policy change will be applied:N/A
9.If the decided effect is impracticable, the opinion provided by the CPA
about the effect of the audit opinion for the accounting year
preceding the accounting change:N/A
10.Opinion expressed by the CPA regarding itemized analysis
of reasonableness:The CPA has reviewed in accordance with Article 6 of the
Regulations Governing the Preparation of Financial Reports by Insurance
Enterprises and did not identify any unreasonable matters.
11.Objection or reservation opinion from the independent directors:None
12.Countermeasures:Taiwan Life elected to subsequently measure its
investment properties at fair value starting from January 1, 2026, in
accordance with the Regulations Governing the Preparation of Financial
Reports by Insurance Enterprises. This accounting policy change was approved
by Taiwan Life's Board of Directors on September 30, 2026.
13.Any other matters that need to be specified:The accounting policy change
approved by the Board of Directors is subject to the approval of the
competent authority before becoming effective.