| Summary: | 碩士 === 國立政治大學 === 會計研究所 === 101 === This study focused on thin capitalization rules and the impacts of adopting IFRS. It also emphasized the classification of debt and equity instruments of foreign countries, as well as the taxation issues of dividend and interest revenue, to introduce thin capitalization rules of other countries, and the available adjustment of Taiwanese thin capitalization regulation as to respond the adoption of IFRS.
The conclusions of this study are divided into two parts. The first part is for other countries’ related regulations. Most countries employ fixed debt/equity ratio approach as the way of anti-avoidance. United States and Germany employ earnings stripping rules approach, while United Kingdom use arm’s length approach. The second part is for the impacts from adoption of IFRS. The impacts are mainly from finance lease and financial instruments’ classification due to the transfer from rule-based to principle-based under IFRS. In addition, financial instruments may have to reclassify with the economics substance, such as preferred stock, callable bonds, and puttable bonds, which are different from Taiwanese original rules. The definition and scope of related party in IFRS are also different and should be clarified.
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