With the transition to IFRS in 2011, listed entities in Korea prepare statutory financial statements in accordance with K-IFRS as adopted by the Republic of Korea enacted by the Act on External Audit of Stock Companies, while non-listed entities may elect to do so voluntarily.
Entities electing not to prepare financial statements in accordance with K-IFRS shall prepare financial statements in accordance with K-GAAP.
Accounting Standards Setter in Korea
Delegated by the Financial Services Commission, the Korean Accounting Standards Board is responsible for the establishment and revision of K-IFRS and K-GAAP.
Korean Accounting Standards Board website: Click here
Disclosure of Financial Statements
Public interest entities, including listed entities, entities issuing public offering securities, etc., are required to disclose their annual reports and interim reports within 90 days and 45 days, respectively, as at the end of the reporting period, in accordance with the Financial Investment Services and Capital Markets Act. Furthermore, entities having total assets of more than KRW 500 billion as at the end of the previous reporting period are required to disclose their quarterly interim reports within 45 days from the end of such reporting period.
Listed entities are required to file their audited annual financial reports at least one week preceding their annual general shareholders’ meeting. Those subject to external audits are required to file their audited annual financial reports within two weeks after the meeting.
Listed entities are also required to provide additional disclosures in compliance with relevant regulations issued by the Korea Exchange (KRX). Further details on disclosure requirements are available on the KRX website.
Related Disclosure Requirements Using Electronic Systems
The disclosures mentioned above are available on the Data Analysis Retrieval and Transfer System (DART) website, operated by the FSC and is accessible by the general public. DART is a resource tool that provides for increased transparency of financial information, including financial statements and audit reports.
In addition, disclosure of financial information via eXtensible Business Reporting Language (XBRL) ensures the comparability of financial statements, which greatly improves the usefulness and efficiency of financial information.
Copyright(c) The Korean Institute of Certified Public Accountants. All rights reserved.