ACCOUNTING STANDARD

FOR

SECURITIES INVESTMENT TRUST INDUSTRY

Accounting Standard for Securities Investment Trust Industry

CONTENTS

I.	General Provisions

1.	Purpose

2.	Scope of Application

3.	Definitions of Terms

4.	Grouping and Classification of Accounts for Financial Statement Presentation

II.	Balance Sheet

5.	Preparation of Balance Sheet

6.	Grouping and Classification of Assets

7.	Cash and Due from Banks

8.	Trading Securities

9.	Loans

10.	Other Current Assets

11.	Investment Securities

12.	Reclassification of Securities

13.	Investment Assets

14.	Tangible Assets

15.	Other Fixed Assets

16.	Classification of Liabilities

17.	Current Liabilities

18.	Long-Term Liabilities

III.	Income Statement

19.	Revenue Recognition

20.	Preparation of Income Statement

21.	Operating Revenues

22.	Operating Expenses

23.	Non-Operating Revenues and Expenses

24.	Extraordinary Gains and Losses

IV.	Measurement of Assets and Liabilities

25.	Valuation of Trading Securities

26.	Valuation of Investment Securities

27.	Establishment of Allowance for Bad Debts

V. Notes to Financial Statements

28.	Notes to Financial Statements

29.	Other Implementation Details

Addenda

Enacted on March 24, 1999

Amended on December 8, 1999

Amended on December 20, 2001

CHAPTER I

GENERAL PROVISIONS

1. Purpose

In accordance with Article 90 of the Financial Accounting standards for Business Enterprises (hereinafter referred to as "the FAS"), this Standard prescribes the standards for accounting and reporting by business enterprises operating in the securities investment trust business. This Standard provides guidance on the matters for which there are no relevant provisions in the FAS or which need different accounting treatment because of the industrial peculiarities of the securities investment trust business.

2. Scope of Application

Management companies engaging in the securities investment trust business are required to apply this Standard when preparing general purpose financial statements related to their own accounts.

(2-1) Securities investment trust business refers to the business prescribed in Article 2 paragraph (1) of the Securities Investment Trust Business Act (hereinafter referred to as "the Act").

(2-2) A management company refers to the securities investment trust company or securities investment trust management company prescribed in the Act and the Regulation on Supervision of Securities Investment Trust business.

(2-3) The trust account and the own account should be maintained as an independent accounting unit separately from each other.

(2-4) Management companies are required to apply this Standard, FAS and the Interpretations of FAS in preparing financial statements to be audited by an independent auditor under the Act on External Audit of Corporations (hereinafter referred to as "the External Audit Act"). For the matters that are not covered in this Standard, FAS and the Interpretations of FAS, generally accepted industry accounting conventions may be applied to the extent that they are consistent with Article 2 and Article 3 of FAS.

(2-5) Management companies established under the Act but not subject to external audit under the External Audit Act and other corporations conducting similar operations may adopt the relevant provisions of this Standard, depending upon the characteristics of their operations.

(2-6) In the event that a change in the scope of business activity of management companies has occurred as a result of an amendment to the Act, the accounting standards for the same businesses of other financial institutions should be applied if there are no relevant provisions in this Standard.

3. Definitions of Terms

A. Securities refer to the securities and financial options prescribed in Article 2 of the Securities and Exchange Act. However, in case the notes issued for the purpose of fund-raising are purchased directly from the issuer, these notes are not included in the securities in this Standard. In addition, financial options inseparable from the underlying assets are not included in the securities in this Standard.

B. Standardized transaction is a transaction through the securities market where fulfillment of contract is guaranteed by a standardized clearing system.

(3-1) Financial options refer to the options whose underlying assets are stock index, exchange rate, or interest rate, etc.

(3-2) Commercial papers (CP) which are not included in the definition of the securities should be classified as loans.

4. Grouping and Classification of Accounts for Financial Statement Presentation

A. Accounts prescribed in this Standard should be used to enhance comparability of accounting information unless there is a special reason to do otherwise. However, accounts that are not material in nature or amount may be combined with similar accounts.

B. Accounts not prescribed in this Standard but material in nature or amount should be presented separately in a manner that best represents their content.

CHAPTER II

BALANCE SHEET

5. Preparation of Balance Sheet

A. The balance sheet should present fairly all assets, liabilities, and stockholders' equity as of the balance sheet date in order to show clearly the financial position of the entity.

B. The balance sheet should comprise sections of assets, liabilities, and stockholders' equity. Assets and liabilities should be presented in the order of their liquidity, but operating characteristics of the entity should be also considered.

C. A sample format of balance sheet is provided in annexed Form 1, and it may be prepared in the account format, if necessary.

(5-1) Accounting treatment for the own account of a management company should reflect properly the performance of managing the trust account.

(5-2) Temporary accounts, such as suspense payments or suspense receipts, should be replaced with relevant account headings that accurately describe their nature.

(5-3) Memorandum accounts should not be presented as assets or liabilities in the balance sheet because they do not meet the criteria for being assets or liabilities. If material, they should be presented in the accompanying notes.

(5-4) When securities are traded through a standardized transaction, the date of contracting should be used as a transaction date.

(5-5) In case a balance sheet is prepared in the condensed format provided in FAS, detailed information, which would be reported if Form 1 were used, should be disclosed in the accompanying notes.

6. Grouping and Classification of Assets

Assets should be classified into current assets and fixed assets. Current assets should be classified into cash and due from banks, trading securities, loans, and other current assets. And fixed assets should be classified into investment securities, investment assets, tangible assets, and other fixed assets.

7. Cash and Due from Banks

Cash and due from banks include cash, due from banks, etc.

8. Trading Securities

A. Trading securities include those securities which have been acquired for short-term capital gains. In this case, equity securities such as stocks and investment in capital should be marketable securities. However, stocks issued by parties having a special relationship with a management company and debt securities purchased with the intention of holding to their maturity date ("held-to-maturity debt securities") should not be included in trading securities.

B. Trading securities encompass stocks, government and public bonds, corporate bonds and beneficiary certificates.

(8-1) Unsold beneficial certificates held for operations should be classified as trading securities.

9. Loans

A. Irrespective of the form of transaction, funds lent with the intention of receiving interests and with an agreement of paying back the principal and interests should be treated as loans.

B. Loans include the following:

- Call loans;

- Securities purchased under resale agreements;

- Short-term loans; and

- Other loans.

(9-1) Call loans refer to loans through call brokers.

(9-2) Securities purchased under resale agreements refer to loans made in a way of purchasing securities with an agreement to resell the securities after a specified period.

(9-3) Short term loans refers to lending accompanied by note issuance.

10. Other Current Assets

Other current assets are those current assets which are not cash and due from banks, trading securities, or loans. Other current assets include accrued income, advance payments, and receivables.

11. Investment Securities

A. Investment securities refer to those securities which no not belong to trading securities.

B. Investment securities include stocks, investment in capital, government and municipal bonds, and corporate bonds.

12. Reclassification of Securities

Classification of trading versus investment securities should be made at the time of acquisition and they should be accounted for accordingly. Trading securities may be reclassified later to investment securities, but reclassification of investment securities is not allowed.

(12-1) The reason for not allowing investment securities to be reclassified later is that gains or losses on valuation of trading securities are reported in the income statement, while gains or losses on valuation of investment securities are reported as capital adjustments in the balance sheet. Thus, reclassification of investment securities is not allowed to prevent possibility of earnings manipulation.

13. Investment Assets

Investment assets include long-term bank deposits, long-term loans, and investment properties, etc.

14. Tangible Assets

Tangible assets refer to the fixed assets acquired for operations, and include land, buildings, vehicles and transportation equipment, furniture, construction in progress, and other tangible assets.

15. Other Fixed Assets

Other fixed assets include intangible assets and deferred income tax debits.

16. Classification of Liabilities

A. Liabilities should be classified into current liabilities and long-term liabilities.

B. Information about the funds borrowed from the trust account should be disclosed by fund type in the accompanying notes.

17. Current Liabilities

Current liabilities include call money, short-term borrowings, securities sold under repurchase agreements, and other current liabilities.

(17-1) Call money refers to funds borrowed through call brokers.

(17-2) Securities sold under repurchase agreements refer to the financial obligation incurred when borrowing funds by selling securities on condition that they will be repurchased after a specified time period.

18. Long-Term Liabilities

Long-term liabilities include guarantee deposits, bonds payable, long-term borrowings, deferred income tax credits, provision for retirement benefits, and other long-term liabilities.

CHAPTER III

INCOME STATEMENT

19. Revenue Recognition

A. In principle, interest revenues earned on due from banks, loans and securities should be recognized as time passes. However, depending on the degree of collectibility, different methods of revenue recognition may be employed.

B. Gain or loss on disposition of securities arising from a standardized transactions should be recognized at the time of trade contracting.

C. In case management fees are determined on the basis of the performance of trust asset management, fees should be recognized on the basis of the performance evaluated as of the balance sheet date.

D. In case fund sales are not included in the business of management companies, fees regarding fund sales are not recognized as revenues.

(19-1) In the case that different methods of revenue recognition are employed because of the collectibility problem, recognition of interest revenue should be done as follows: Interest revenue accrued from collectible receivables prescribed in (27-1) may be recognized as accrued interest revenue because it is realizable. However, interest revenue accrued from uncollectable receivables should not be recognized as accrued interest revenue because realization is unlikely. For other receivables, past experience and industry practice should be the basis for deciding whether to recognize interest revenue, and this rule should be applied consistently in subsequent periods.

(19-2) Gain or loss on disposition of securities arising from a standardized transaction should be recognized at the time of trade contracting since benefits and risks of the securities are transferred at that time.

(19-3) In the case that management fees were recognized as revenue in accordance with [19C] but current performance of trust asset management falls below the performance evaluated at the previous balance date, the revenue recognized should be written off against gains on other trusts recognized in the current period, and any remaining amount after the write-off should be treated as a loss on trust.

20. Preparation of Income Statement

A. In order to present fairly the results of business operations, the income statement should present all revenues earned in the current accounting period, and all matching expenses incurred in generating the revenues.

B. The income statement should be divided into the following sections: operating income (operating loss), ordinary income (ordinary loss), income before income taxes (loss before income taxes), income tax expense, and net income (net loss) for the period.

C. Operating income (operating loss) should be presented by subtracting operating expenses from operating revenues.

D. Ordinary income (ordinary loss) should be presented by adding non-operating income to, and deducting non-operating expenses from operating income (operating loss).

E. Income before income taxes (loss before income taxes) should be presented by adding extraordinary gains to, and deducting extraordinary losses from ordinary income (ordinary loss).

F. Net income (net loss) for the period should be presented by deducting income tax expense from income before income taxes (loss before income taxes).

G. A sample format of the income statement is presented in annexed From 2.

(20-1) In case an income statement is prepared in the condensed format provided in FAS, detailed information, which would be reported if Form 2 were used, should be disclosed in the accompanying notes.

21. Operating Revenues

A. Operating revenues are revenues earned from main operating activities of a management company. Operating revenues encompass gains on trust, fees and commissions, dividends from beneficiary certificates, interest revenues, dividend income, gains on disposition of trading securities, and gain on valuation of trading securities.

(21-1) Gains on trust include management fees from trust assets in accordance with securities trust contracts, and revenues arising from management of trust-type securities deposit.

(21-2) Fees and commissions include fees and commissions that a management company receives in return for services rendered in conjunction with its ordinary operating activities and redemption fees of beneficiary certificates.

(21-3) Dividends from beneficiary certificates refer to shares distributed from the settlement of beneficiary certificates. An increase in the principal included in beneficiary certificates is not a dividend from beneficiary certificates

(21-4) Interest revenues include the following:

- Interest on due from banks;

- Interest on loans;

- Interest on trading securities;

- Interest on investment securities.

(21-5) Dividend income includes dividends arising from trading securities and investment securities.

(21-6) Gains on disposition of trading securities refer to gains on trading and redemption of trading securities.

(21-7) Gains on valuation of trading securities refer to gains arising from valuing trading securities at fair value.

22. Operating Expenses

A. Operating expenses are expenses incurred from main operating activities of a management company. They should be classified into fees and commissions expense, interest expense, loss on trust, losses on disposition of trading securities, losses on valuation of trading securities, and selling and administrative expenses.

(22-1) Fees and commissions expense refers to fees and commissions a management company pay in return for services rendered by external parties in conjunction with its ordinary operating activities.

(22-2) Interest expense refers to interest expenses incurred on bonds payable and borrowings.

(22-3) Loss on trust refers to losses arising from valuation of trust assets (including offshore funds) as of the balance sheet date for the trust contracts with protection of principal or yield (including fixed yields contracts).

(22-4) Loss on disposition of trading securities refers to losses arising from trading and redemption of trading securities.

(22-5) Loss on valuation of trading securities refers to losses arising from valuation of trading securities at fair value.

(22-6) Selling and administrative expenses refer to various expenses incurred from conducting revenue generating activities and administrative activities, and include the following:

- Salaries (officers' salaries, employees' salaries, wages and various allowances);

- Retirement allowance;

- Other employee benefits;

- Rent expense;

- Promotion expense;

- Depreciation expense;

- Taxes and dues;

- Advertising expense;

- Bad debt expense.

In case only the total amount of selling and administrative expenses is presented in the income statement, a supplementary schedule showing the detailed accounts should be presented in a note to the income statement.

23. Non-Operating Revenues and Expenses

A. Non-operating revenues include the following:

- Gain on disposition of tangible assets;

- Rental income;

- Gain on valuation of investments using the equity method of accounting;

- Gain on disposition of investment securities;

- Restoration of investment stocks impairment loss;

- Restoration of investment bonds impairment loss; and

- Other non-operating revenues.

B. Non-operating expenses include the following:

- Loss on disposition of tangible assets;

- Loss on valuation of investments using the equity method of accounting

- Loss on disposition of investment securities;

- Investment stocks impairment loss;

- Investment bonds impairment loss; and

- Other non-operating expenses.

24. Extraordinary Gains and Losses

A. Extraordinary gains should include unusual and non-recurring gains, gain from assets contributed, gain on exemption of debts, gain on insurance settlements and other extraordinary gains.

B. Extraordinary losses should include unusual and non-recurring losses, casualty losses and other extraordinary losses.

CHAPTER IV

MEASUREMENT OF ASSETS AND LIABILITIES

25. Valuation of Trading Securities

A. For equity securities classified as trading securities, acquisition cost should be determined by adding incidental costs to the purchase price, and applying the weighted average or moving average method. These securities should be reported at fair value in the balance sheet.

B. For debt securities (bonds) classified as trading securities, acquisition cost should be determined by adding incidental costs to the purchase price, and applying the specific identification method, weighted average or moving average method. These securities should be reported at fair value in the balance sheet.

C. In determining the unit cost of trading securities, the weighted average or moving average method should be applied by each class of securities.

D. For debt securities (bonds), information about face value, acquisition cost, carrying amount adjusted by applying the effective interest method and fair value should be disclosed in the accompanying notes. Such information should be presented by category of the method of measuring fair value.

(25-1) The fair value of trading securities should be measured as follows:

1.	For trading securities other than bonds, fair value should be the closing market price as of the balance sheet date. In the case that no closing price exits at the balance sheet date, the most recent closing price before the balance sheet date should be used.

2.	Fair value of bonds shall be measured on the basis of an objective and reasonable price selected from the following:

- Closing market price as of the date of balance sheet;

- Closing market price on the most recent transaction day quoted by a generally accepted price survey;

- Value estimated from the yield for valuation of bonds disclosed by bond dealers.

- Value estimated from the yield for valuation of bonds disclosed by authorized independent securities rating agencies.

Authorized independent rating agencies include the agencies designated as bond price rating agencies by the Governor pursuant to Article 12-2 of the Rules on Enforcement of Securities Investment Trust Business Act.

26. Valuation of Investment Securities

A. The acquisition cost of equity securities classified as investment securities should be determined by adding incidental purchase expenditures to the purchase price, and applying the weighted-average or moving-average method to each class of securities.

B. Marketable equity securities classified as investment securities should be reported at fair value in the balance sheet.

C. Notwithstanding [26B], for the investment in equity securities which gives the investor company the ability to exercise significant influence over the investee company, the investment amount evaluated under the equity method should be used as the balance sheet amount. The difference between the carrying value and the restated balance sheet amount should be accounted for as follows. The difference due to the investee's net income or loss should be recognized as gain or loss on valuation using the equity method of accounting in the income statement. The difference due to changes in the investee's retained earnings should be reported as the increase or decrease in the investor's retained earnings. When the difference results from changes in the investee's capital surplus or capital adjustments, it should be reported as the increase or decrease in the investor's capital adjustments.

D. In the case that the fair value of investment in equity securities (excluding equity securities subject to valuation by the equity method) has declined and the decline is not restorable, the difference between the previous book value and the fair value should be reported as investment stocks impairment loss in the income statement. If equity securities are not marketable securities, the net asset value of the investee company is used as fair value.

E. The acquisition cost of debt securities (bonds) classified as investment securities should be determined by adding incidental purchase expenditures to the purchase price, and applying the specific identification method, weighted average or moving average method to each class of securities.

F. For investment in bonds whose face value differs form the acquisition cost, the difference should be amortized using the effective interest method, and the unamortized cost should be reported in the balance sheet. However, when the acquisition cost of bonds other than held-to-maturity bonds ("available-for-sale bonds") differs from their fair value, the fair value should be reported in the balance sheet. (For bonds whose acquisition cost and face value differ, fair value should be compared with the unamortized cost.)

G. Gain on valuation of investment securities (excluding gain on valuation using the equity method) should be offset against loss on valuation of investment securities (excluding loss on valuation using the equity method), and the net gain or loss should be reported as a capital adjustment in the balance sheet.

H. In the case that the fair value of investment in bonds has declined and the decline is not restorable, the difference between the previous book value and the fair value should be reported as investment bonds impairment loss in the income statement.

I. In the case of reclassification of trading securities to investment securities, investment securities should be reported at fair value as of the balance sheet date. The difference between the carrying value of previous trading securities and the balance sheet amount of investment securities should be recognized as gain or loss on valuation of trading securities in the income statement.

J. Fair value of investment securities should be determined in accordance with (25-1). Net asset value of investment securities should be measured as the net assets presented on the most recent balance sheet of the stock issuing company.

K. For investment in equity securities, a note disclosure should be made on the following: the investee company name, number of stocks owned, holding ratio, acquisition cost, fair value or net asset value, investment value evaluated by the equity method (only for investment in stocks accounted for by the equity method), and book value. For investment in held-to-maturity and available-for-sale bonds, a note disclosure for each of them should be made on the following: face value, acquisition cost, unamortized cost obtained by applying the effective interest method, fair value, and measurement method for fair value.

(26-1) Investment in bonds should be classified as either held-to-maturity bonds or available-for-sale bonds at the time of their acquisition, depending on management's intention. In the following cases, however, held-to-maturity bonds should be reclassified into available-for-sale bonds:

1.	When a portion of held-to-maturity bonds are sold, the remaining bonds;

2.	Bonds that have to be sold before maturity by law;

3.	Bonds on which an impairment loss is to be recognized in accordance with [26H].

(26-2) Gain or loss on valuation of investment securities reported as a capital adjustment should be netted against additional valuation gain or loss arising in subsequent periods. Information on such netting should be disclosed in a note to the financial statements. Gain or loss on valuation of investment securities should be deducted from or added to the gain or loss on disposition of investment securities when the investment securities are disposed. In the case that the carrying value of investment securities is written down and an impairment loss is recognized, the previously recognized valuation gain or loss should be deducted from or added to the investment securities impairment loss.

(26-3) In the case that investment in bonds is measured in accordance with [26F], the amortization should be added to or deducted from the bonds' interest revenue. In the case of measuring at fair value pursuant to the proviso of [26F], the difference between amortized cost and fair value should be reported as a capital adjustment.

(26-4) For investment securities whose carrying amounts were written down in previous periods in accordance with [26D] and [26H], fair value at fiscal-year end should be reported in the balance sheet if the fair value is greater than the book value and the restoration of fair value is deemed permanent. In this case, the difference between the previous book value and the fair value should be accounted for as follows:

1.	If the fair value at fiscal-year end is less than the acquisition cost, the difference should be recognized as restoration of investment stocks impairment loss or restoration of investment bonds impairment loss in the income statement. (For bonds whose acquisition cost and face value differ, fair value should be compared to amortized cost obtained by applying the effective interest method.); or

2.	If the fair value at fiscal-year end is greater than the acquisition cost, the difference between the acquisition cost and the book value should be accounted for in the same way as Item 1 above, and the difference between the fair value and the acquisition cost should be reported as a capital adjustment.

27. Establishment of Allowance for Bad Debts

A. For loans (including accrued interest revenues thereof) whose collectibility is doubtful, allowance for bad debts should be established based on percentage of bad debts estimated on a reasonable and objective basis. Different percentages uncollectable may be applied to loans with different probabilities of collectibility, but the estimated percentages should be applied consistently in subsequent periods unless there is no special reason to change.

B. Uncollectable loans should first be written off against the allowance for bad debts, and, if the allowance is not sufficient to absorb uncollectable loans, the amount in excess of the allowance should be accounted for as bad debt expense.

C. Allowance for bad debts may be presented as a deduction from the related loan account or the aggregate amount may be presented as a single deduction from the total of loans and other assets. In the latter case, details of allowance for bad debts should be disclosed in the accompanying note.

D. A note disclosure should be provided on the following items:

1.	Criteria used to classify debtors' credit rating;

2.	Amounts of collectible loans, doubtful loans and uncollectible loans, and criteria used to classify them;

3.	Estimates of bed debts and percentage uncollectible, and bases for estimation;

4.	Details of uncollectible loans for which legal expiration dates have not arrived or claims are still effective;

5.	Ratio of allowance for doubtful accounts to total loans outstanding over the past three years;

6.	Other significant accounting policies related to uncollectible loans.

(27-1) Classification of loans into collectible loans, doubtful loans and uncollectible loans should be made as follows:

1.	Based upon the debtor's financial position, debtors should be classified into normal debtors, debtors under observation, and delinquent debtors;

2.	Of the loans made to normal debtors, loans on which principal and interests are not in arrears should be classified as collectible loans.

The remaining loans should be classified as either collectible loans or doubtful loans in accordance with Item 3 below;

3.	Of the loans made to debtors under observation, loans, whose collectivity is deemed certain considering the value of collateral assets and the guarantor's ability to pay, should be classified as collectible loans, and all other loans should be classified as doubtful loans. (Even if loans have not been secured, the fair value of debtor's assets in excess of debtor's obligations to the senior creditors may be included in collateral assets.

4.	Of the loans to delinquent debtors, loans, whose collectivity is deemed certain considering the value of collateral assets and the guarantor's ability to pay, should be classified as collectible loans, and all other loans should be classified as uncollectible loans.

(27-2) Classification of debtors into normal debtors, debtors under observation or delinquent debtors may be done based upon past experience or industry practices. Debtors under observation can be further divided. The criteria used to classify debtors should be applied consistently in subsequent periods unless there is a special reason to do otherwise. Debtors belonging to the following categories should be classified as delinquent debtors:

1.	A debtor with payments in arrears for more than six (6) months;

2.	A debtor classified as a red-rated customer (a customer with the lowest credit rating) by the credit information exchange of financial institutions;

3.	A corporate debtor that is in the process of (or has applied for) a reorganization under the Company Reorganization Act;

4.	A corporate debtor that is in the process of (or has applied for) a composition under the Composition Act;

5.	A debtor whose business has been closed for more than six (6) months;

6.	A corporate debtor that has been issued a disclaimer of CPA audit opinion on its most recent financial statements.

(27-3) In establishing allowance for bad debts, if industry practices regarding debtor classification and evaluation of collectibility of loans are not materially different from the provisions in this Standard, the industry practices may be applied.

CHAPTER V

NOTES TO FINANCIAL STATEMENTS

28. Notes to Financial Statements

The following should be disclosed in notes to the financial statements.

1.	Significant accounting policies;

2.	Types of deposits made pursuant to the relevant regulation, and amounts by financial institution;

3.	Types and amounts of the company's own assets, and types and amounts of trust assets which are managed separately from the company's own assets;

4.	Types and amounts of beneficiary certificates held by the company;

5.	Details of transaction with trust account and amounts as of the balance sheet date;

6.	Classes and amounts of loaned securities;

7.	Classes and amounts of securities provided or received as collateral in relation to sale and purchase of securities;

8.	Contractual details of derivatives;

9.	In the event that the company has invested in offshore funds, the following should be disclosed for each fund: name, location, net asset value, total amount of borrowings, total amount of investment by the company and its holding ratio, the company's share of net assets;

10.	Amount of trust contracts with protection of principal or yield, their contractual details, amount to be beared by the company's own account when the carrying value of trust assets differs from their fair value, and details regarding management of trust-type securities deposit.

11.	Other items which have significant influence on the financial statements, and items which need disclosure for understanding the financial statements.

29. Other Implementation Details

Other details necessary in implementing this Standard may be separately provided by the Chairman of the SFC.

Addenda

(March 24, 1999)

1. Effective Date

This Standard shall be effective on March 25, 1999.

2. Applicability General

This Standard should be applied from the first fiscal year beginning on or after the effective date.

3. Applicability to Valuation Using Equity Method

As for investment stocks subject to valuation using the equity method of accounting but acquired before the end of the fiscal year to which the effective date of this Standard belongs, [26C] may be applied assuming the stocks are acquired on the first day of the fiscal year of initial application.

4. Interim Measure on Valuation of Investment Securities

In application of [26F], the previous accounting standards may be applied to adjust the difference between the acquisition cost and the face value of investment bonds acquired before the end of the fiscal year to which the effective date of this Standard belongs.

5. Interim Measure on Comparative Presentation

For the fiscal year of initial application of this Standard, financial statements for previous fiscal years may be omitted.

Addendum

(December 9, 1999)

1. Effective Date

This Standard shall be effective on December 9, 1999.

Addendum

(December 31, 2001)

This Regulation shall be effective on December 31, 2001. This Regulation shall be applied from the first fiscal year from which this Standard becomes effective. This Regulation may also be applied toward the fiscal year in which the effective date of this Regulation belongs.