Ruentex Development : Announcement that the Company changes accounting policy from accounting year 2022.

 Announcement that the Company changes
accounting policy from accounting year 2022.

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:Measurement of investment properties is changed from
the cost model to the 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$6.008 billion,investment
property increased NT$18.178 billion,deferred tax liabilities increased
NT$3.6 billion,retained earnings increased NT$18.904 billion,other equity
increased NT$0.037 billion,capital surplus increased NT$0.188 billion,and
non-controlling interests increased NT$1.457 billion.
(2)Effect on consolidated balance sheet as of 2021/12/31:Investments
accounted for using the equity method increased NT$6.455 billion,investment
property increased NT$18.755 billion,deferred tax liabilities increased
NT$3.705 billion,retained earnings increased NT$19.818 billion,other equity
increased NT$0.037 billion,capital surplus increased NT$0.188 billion,
and non-controlling interests increased NT$1.462 billion.
(3)Effect on consolidated statement of comprehensive income for year 2021:
Gain on investment property increased NT$0.102 billion,rental cost
decreased NT$0.475 billion,investment income increased NT$0.447 billion,
and tax expense increased NT$0.105 billion.
6.Actual effect on the opening balance of retained earnings for
the past accounting year:Retained earnings increased
NT$18.904 billion in 2021/01/01.
7.The reasonableness and necessity for the change in accounting policy
or accounting estimate after the beginning of the accounting year:
The value of investent property of the Company in financial statements by
using cost model is underrated.To provide more proper and relevant financial
information,the Company changes accounting policy from cost model to 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:analysis of reasonableness: The CPA has completed review
in accordance with Article 6 of the Regulations Governing
the Preparation of Financial Reports by Securities Issuers
and did not find any unreasonable aspect.
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 designated NT$19.818 billion of special
reserve on 2022/01/01.