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Korea |
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Update for November 2011
Update for March 2011
Update for October 2008
Update for July 2008
Update for February 2008
Update for November 2007
Update for September 2007
Update for June 2007
Update for March 2007
Update for January 2006
Update for October 2000
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Financial Reporting Framework in Korea
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Korean IFRS Equivalents
The Korean Accounting Standards Board (KASB) has adopted IFRSs as Korean IFRSs (K-IFRSs). K-IFRS are completely identical to IASB IFRSs except for timing differences for newly published
IFRS. K-IFRSs are kept up to date as IFRSs change.
K-IFRS are required for all listed companies in Korea since 2011. Unlisted financial institutions and state-owned companies
are also required to apply K-IFRSs; other unlisted companies may elect to do so.
Korean Accounting Standards for Non-public Entities
The
KASB has developed Korean Accounting Standards for Non-Public Entities based on existing Korean GAAP with some modifications.
The Korean Accounting Standards for Non-Public Entities were published in 2009. KASB expects to converge its standards for non-public entities with the IFRS for SMEs 'in the long term'.
Unlisted companies (with the exception of financial
institutions and state-owned companies) have the choice between full IFRSs andthe
Korean Accounting Standards for Non-Public Entities
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IFRS in Focus Newsletter in Korean
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Deloitte (Korea) publishes Korean translations of the IFRS in Focus newsletters. English editions of these newsletters can be found Here.
Translations of earlier IAS Plus Update newsletters can be found on the Deloitte (Korea) website.
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November 2011 Update
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Standard setters from China, Japan and Korea meet
Standard setters from China, Japan and the Republic of Korea met in Xiamen, China on 26 October 2011. Representatives were present from the China Accounting Standard Committee (CASC), Accounting Standards Board of Japan (ASBJ), Korea Accounting Standards Board (KASB), International Accounting Standards Board (IASB), along with other delegates from the three countries and Hong Kong and Macau.
The meeting discussed the process of convergence of accounting standards, the IASB's projects and its future agenda and the prospective efforts of the Asian-Oceanian Standard Setters Group (AOSSG).
The delegates agreed to maintain communication between the countries (on projects, convergence and issues), to coordinate perspectives on the IASB's projects, and to enhance regional communication and cooperation in Asia-Oceania. Full support was expressed for the IASB's Asia-Oceanian regional liaison office to be established in Tokyo in October 2012.
The next meeting will be held in Korea in 2012. Click for press release (link to ASBJ website).
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March 2011 Update
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China, Japan and Korean standard setters sign Memorandum of Understanding
On 25 January 2011, a meeting between the leaders of the standard setters of China, Japan and the Republic of Korea resulted in the signing of a Memorandum of Understanding (MoU), which seeks to strengthen and reinforce the communication and cooperation between the standard setters over the next several years.
Under the MoU, the three parties have agreed to:
- continue communicating with one another on accounting standards development
- exchange views and experience of convergence work with IFRSs and related implementation, and share their experience with other jurisdictions
- continue to work together to play an important role in the Asian-Oceanian Standard Setters Group (AOSSG)
- cooperate on the governance and strategy review of the IFRS Foundation, and work jointly to achieve high quality financial reporting in the Asian-Oceanian region and the development of IFRSs
- strengthen communication of technical issues on IFRSs, endeavour to reach consensus in comments on the IASB's major projects.
Click for Memorandum of Understanding (MoU) of High-level Meeting of Accounting Standards Setters among China, Japan and Republic of Korea (PDF 365k, link to Accounting Standards Board of Japan website).
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October 2008 Update
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IFRS compliance and disclosure checklists in Korean
 | Deloitte (Korea) has translated into Korean the Deloitte 2007 IFRS Compliance Questionnaire and 2007 IFRS Presentation and Disclosure Checklist. Click to download:
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July 2008 Update
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New Korean Language Guide to IFRS 5
 | Deloitte (Korea) has published a 74-page Korean language guide to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. It is a translation of the English language version, which is available Here.
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February 2008 Update
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Korean translation of IFRSs is completed
 | The Korea Accounting Institute (KAI), which is responsible for setting accounting standards in Korea, has released the Korean translation of International Financial Reporting Standards. This translation is part of a plan, announced in March 2007 by the KAI and the Korean Financial Supervisory Commission, for adopting Korean equivalents of IFRSs (K-IFRSs). All listed companies will be required to prepare their annual financial statements under K-IFRSs beginning in 2011. Listed companies other than financial institutions will be permitted to do so beginning in 2009. Unlisted companies will be allowed to use K-IFRSs. The translation of IFRSs into Korean is a word-for-word translation of the IASB's standards, including all mandatory guidance, and interpretations. Translation of the non-mandatory guidance that accompanies several of the IFRSs is now under way and will be completed by the end of 2008.
The translation can be downloaded from the KAI Website free of charge, for use within the Republic of Korea and by any foreign subsidiary, joint venture, associate, or branch of a Korean company. Click for:
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November 2007 Update
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New IFRS publications from Deloitte Korea
In March 2007, the Korean Financial Supervisory Commission and the Korea Accounting Institute announced a plan for adopting Korean equivalents of International Financial Reporting Standards (K-IFRSs). All listed companies will be required to prepare their annual financial statements under K-IFRSs beginning in 2011. Listed companies other than financial institutions will be permitted to do so beginning in 2009. Unlisted companies will be allowed to use K-IFRSs. To help clients and staff in the transition to K-IFRSs, in November 2007 Deloitte Korea issued four IFRS publications in the Korean language, as follows:
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September 2007 Update
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The IFRS Services Group of Deloitte Anjin LLC, the Deloitte member firm in Korea, has developed a Korean language IFRS website: www.iasplus.co.kr. The website includes selected news stories and other information from the www.iasplus.com as well as local news, in Korean.
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June 2007 Update
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Symposium on convergence
The Korea Accounting Standards Board (KASB) held a symposium on Present and Future of Convergence between US GAAP and IFRSs on Thursday 7 June 2007 in Seoul. Robert H Herz, Chairman of the US Financial Accounting Standards Board, was the keynote speaker. He presented a background on the US financial reporting system, offered a US perspective on FASB international convergence, and commented on the 'principles versus rules' debate. Click to download:
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March 2007 Update
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March 2007: Korea will move toward IFRSs
The Financial Supervisory Commission and the Korea Accounting Institute have announced a road map for the adoption of Korean equivalents of International Financial Reporting Standards (K-IFRSs). The announcement ceremony took place in Seoul on 15 March. IASB Chairman Sir David Tweedie made congratulatory remarks.
The Korean Roadmap toward IFRSs
- Listed companies. All listed companies will be required to prepare their annual financial statements under K-IFRSs beginning in 2011. Listed companies other than financial institutions will be permitted to do so beginning in 2009. Until adopting K-IFRSs, listed companies will continue to use current Korean Accounting Standards.
- Unlisted companies. Unlisted companies will be allowed to use 'simplified accounting procedures' that KASB will adopt by 2011 but may elect to issue K-IFRS financial statements. Until KASB's simplified standards are in place, unlisted companies will continue to use their current Korean Accounting Standards.
- Consolidation. Currently, Korean companies both listed and unlisted are required to prepare separate company financial statements as their primary published financial statements. In addition they submit consolidated financial statements to the government, and consolidation is based on greater than 30% ownership. Under IFRSs, where there is a parent-subsidiary relationship, consolidated financial statements are required as the primary statements, with consolidation on the basis of control (generally greater than 50% ownership).
- Interim reports. While all listed companies must prepare quarterly and semiannual financial statements, those with assets below KRW2 trillion (about US$2.2 billion) will not be required to prepare interim statements on a consolidated basis until 2013. All must disclose non-financial items quarterly and semiannually on a consolidated basis.
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January 2006 Update
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Non-domestic listed companies may use IFRSs in Korea
South Korea's Financial Supervisory Commission has approved regulatory amendments proposed by the Korea Exchange to allow non-Korean listed companies to use IFRSs or US GAAP instead of Korean Accounting Standards. At 31 December 2005, the World Federation of Exchanges reports that 1,619 domestic and 0 non-domestic companies were listed on the Korea Exchange. Click for Press Release (PDF 145k).
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October 2000 Update
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Following the financial crisis in 1997, the Korean government, in consultation with the World Bank, embarked on a plan to improve financial reporting practices, taking IAS as their benchmark. A new independent private-sector Korea Accounting Standards Board (KASB) was created as of 1 September 1999. The Board operates under a new Korea Accounting Institute, created as of 1 July 1999.
KASB's goal is to improve Korean accounting standards to a level consistent with international best practices. Since its establishment, the KASB has adopted a policy of harmonizing Korean Accounting Standards (KAS) with IAS.
Currently, KAS consist of the body of literature that was carried forward when the KASB began:
- Financial accounting standards (FAS) consisting of 91 articles
- 13 working rules for specific industries and/or topics
- 58 interpretations of the FAS, prepared in a statement or Q&A format
- In addition, there are 30 implementation guides published by the Korean Financial Supervisory Services Authority from their answers to individual questions
After taking over the authority to issue accounting standards, the KASB has so far issued two research reports and four discussion papers
Research Reports
- No.1, Review of the Working Rules
- No.2, Review of the Interpretations (including comparison with IAS and US GAAP)
Discussion Paper
- No.1, Changes in accounting policy and estimates, and correction of errors
- No.2, Intangible assets
- No.3, Revenue recognition
- No.4, Valuation of equity securities and debt securities
- These discussion papers were issued as a part of formalizing a Statement of Korean Accounting Standards.
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