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http://dx.doi.org/10.5762/KAIS.2014.15.2.688

A Study on the Improvement of the Korean Accounting Stipulations of The Long term Care Facilities  

O, Dongil (Department of Finance and Management, SangMyung University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.15, no.2, 2014 , pp. 688-697 More about this Journal
Abstract
The current accounting for the long term care facilities are enforced by either financial accounting stipulations of social welfare legal entity or the guiding principles of long term care insurance law. In addition, some facilities are not eligible to access to the Korea Health and Welfare information system and even don't have any obligation to report financial information. Thus financial position and performance of activities are not well known to the interested parties. This study investigated the way how to improve the current accounting stipulation of the long term care facilities. In conclusion, we should introduce the accounting standards based on the double entry system but on other aspect, also more simplified financial statement based on single entry system for smaller facilities. Also we should introduce three important appropriation accounts for the net income of institution which matches GAAP. For a successful plantation of accounting standards, it is necessary to establish provisions, government subsidy account, depreciations concept.
Keywords
Accounting standard; Accounting stipulation; Long term care facilities; National insurance system; Not for profit organization; Social welfare legal entity;
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