Ruentex Industries : Announcement that the Company will change accounting policy from accounting year 2022

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Provided by: RUENTEX INDUSTRIES LIMITED
SEQ_NO	1	Date of announcement	2022/07/28	Time of announcement	18:12:02
Subject	Announcement that the Company will change accounting policy from accounting year 2022
Date of events	2022/07/28	To which item it meets	paragraph 9
Statement	1.Date of the board of directors' resolution:2022/07/28 2.Nature of the change:Change in accounting policy 3.Reason for the change: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: 2022/01/01 5.The line items affected and the actual effect for the year before accounting change: (1)Effect on consolidated balance sheet as of 2021/01/01: Investments accounted for using the equity method increased NT$9.485 billion, investment property increased NT$1.309 billion, deferred tax assets decreased NT$0.002 billion , deferred tax liabilities increased NT0.128 billion and equity increased NT$10.664 billion. (2)Effect on consolidated balance sheet as of 2021/12/31: Investments accounted for using the equity method increased NT$9.904 billion, investment property increased NT$2.662 billion, deferred tax assets decreased NT$0.002 billion, deferred tax liabilities increased NT$0.128 billion and equity increased NT$12.437 billion. (3)Effect on consolidated statement of comprehensive income for year 2021: Fair value income increased NT$1.342 billion,depreciation expense decreased NT$0.011 billion,investment income increased NT$0.418 billion,tax expense increased NT$0.001 billion,consolidated net income increased NT$1.772 billion. 6.Actual effect on the opening balance of retained earnings for the past accounting year:Retained earnings increased 10.441 billion on 2021/01/01. 7.The reasonableness and necessity for the change in accounting policy or accounting estimate after the beginning of the accounting year: In view of the fluctuation of domestic and foreign economic situation and the impact of inflation on assets this year, the investment real estate assets originally measured by the cost model cannot show their proper value in the financial report. Therefore,for providing more reliable financial statements,relevant information and reasonably reflect the company's overall operating performance.Through the resolution and approval of the company's board of directors,it is planned to change the measurement of investment real estate from the cost model to the fair value model from 2022/01/01. 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:None 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:None 10.Opinion expressed by the CPA regarding itemized analysis of reasonableness: According to the opinion expressed by the CPA with Article 6 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers,there is no material abnormality in handling of relevant accounting policy changes. 11.Objection or reservation opinion from the independent directors:None 12.Countermeasures:The Company's board of directors resolved to comply with the Regulations Governing the Preparation of Financial Reports by Securities Issuers in posterior handling on 2022/07/28. 13.Any other matters that need to be specified: As defined in the Letter Jin Guan Zheng Zi No.10901500221 of the Financial Supervisory Commission dated 2021/03/31,when the investment property listed in the public company's account is first selected to be measured by the fair value model for subsequent measurement,the Company should designate the same amount of special reserve of the net increase in fair value transferred to retained earnings.The Company designate NT$12.213 billion of special reserve on 2022/01/01.