Regulations Governing the Handling of Financial Forecasts of Public Companies

These regulations are established pursuant to Article 36-1 of the Securities and Exchange Act to ensure the proper disclosure of financial forecasts by public companies, thereby protecting investors. They cover the principles of preparation, timing of disclosure, update and correction procedures, and CPA review responsibilities, requiring forecasts to be based on integrity and reasonable assumptions, and approved by the board of directors.

Firstly, if a company releases predictive information improperly, the authorities may require the publication of a more comprehensive financial forecast, increasing administrative costs. Secondly, significant discrepancies between actual and forecasted figures necessitate a public explanation of the reasons, which can impact market confidence and stock prices. If forecasts are proven to be false or concealed due to intent or gross negligence, it may violate the Securities and Exchange Act, leading to liability for damages and severely harming the company's reputation.

While this is a Taiwanese regulation, its principles are closely linked to several international standards. ISO 31000 (Risk Management) provides a systematic approach for establishing reasonable forecast assumptions by helping identify and evaluate internal and external risks that could affect the forecast. ISO 27001 (Information Security Management) ensures the integrity and confidentiality of the data underlying the forecast, preventing data tampering or leakage. Its core CIA triad (Confidentiality, Integrity, Availability) is fundamental to creating credible forecasts.

Winners Consulting's founder has a background in preventive law, and our team integrates cross-disciplinary experts in technology law, ISO lead auditing, industrial engineering, and data science. We don't just help companies comply with regulations; we vertically integrate the financial forecasting process with ISO 31000 risk management and ISO 27001 information security controls to build resilient and credible forecasting models. Our experience serving top-tier clients like TSMC and MediaTek ensures your financial forecasting mechanism is robust, avoids redundant management structures, and strengthens investor confidence.